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10 Reasons African-Americans Should Invest in Africa

UnderMiSensi
UnderMiSensi Members Posts: 955 ✭✭✭✭✭
edited February 2014 in The Social Lounge
http://atlantablackstar.com/2014/02/02/10-reasons-african-americans-should-invest-in-africa/
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Africa has the most natural resources in the world. For example: Just one country, the Democratic Republic of the Congo is estimated to have $24 trillion worth of untapped deposits of raw mineral ores, which is equivalent to the combined total Gross Domestic Product of Europe and the United States combined. These raw minerals include cobalt, copper, niobium, tantalum, industrial and gem diamonds, gold, silver, zinc, manganese, tin, uranium, coal, petrol and timber. It is believed that 80 percent of the world’s coltan is in the Congo.

Besides the raw resources, there are plenty other investment opportunities in Africa and with proper organized initiatives many African-Americans that may want to invest can make plenty of money for their efforts.

According to Jerome Almon, a businessman and an economist, “African Americans spend well over a trillion dollars annually, and it does us no good, however investing in Africa through business ventures can create thousands of new millionaires, and dozens of new billionaires in a wide range of categories.”

Below are 10 solid reasons why African-Americans should organize campaigns or join other solid initiatives to invest in Africa.
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1. Indication of the new scramble
A good sign that there is a significant amount of wealth that can be made in Africa is the new scramble for the resources on the continent. Currently, China, Japan, the United States and other countries are positioning strategically to extract the resources from Africa.

For instance, many Chinese companies—some of which are backed by the government—have made significant investments in the Congo and other parts of Africa. The Chinese government have realized that it’s going to need resources from Africa to fund its growth, its consumption in the future and to make it a wealthier and more powerful nation.

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2. Africa is Untapped
Ozii Obiyo, an international business consultant, used the term “untapped” to describe Africa’s potential for positive growth across many sectors, in a recent interview. For example, besides all the raw materials that are untapped, Africa has 60 percent of the world’s uncultivated arable land. Experts estimate that the continent’s agricultural output could increase from $280 billion (USD) –the estimate as of July 2010– to $ 500 billion (USD) by 2020 and as much as $880 billion (USD) by 2030. Investing in farming in African can be a lucrative venture.

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3.Ground-floor opportunity
There is major ground-floor opportunity for businesses in Africa. For the decade ended Dec. 31, 2009, an African composite index made up of eight countries, including South Africa, Nigeria, and Egypt, returned about 14 percent annualized. South Africa alone returned an average of 13 percent per year over that period. Compare that with the MSCI Emerging Markets Index (Morgan Stanley Capital International), which returned about 7 percent annualized, or the S&P 500, which lost about 3 percent over the same period.
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4. Strong growth expectations
According to projections from the World Bank, nine of the 15 countries in the world with the highest rate of five-year economic growth are in Africa. Experts estimate that Africa is likely to grow by 4.7 percent over the next five years. Economists expect much slower growth in places like the United States and U.K. over the next few years.
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5. Profitable companies
There are a number of well-known companies that are based in Africa, including South African Breweries and telecom company MTN. Africa’s total stock market capitalization now exceeds $1 trillion. A past study by two economists, Paul Collier and Jean-Louis Warnholz, found that from 2002 to 2007, the average annual return on capital of African companies was 65 percent to 70 percent higher than that of comparable companies in China, India, Indonesia, and Vietnam. That means the African companies were more profitable.

Africa also features about 10 stock exchanges, according to bizcommunity.com. The market capital has risen from $5.5 billion in 1988 to $569 billion in 2005 (excluding South Africa). In addition, small investors are able to access Africa’s growth potential through the T. Rowe Price Africa and Middle East Fund (nasdaq: TRAMX), launched in September 2007. The SPDR S&P Emerging Middle East & Africa (nyse: GAF) exchange-traded fund is another option, according to John H. Christy’s commentary on Forbes.com.
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Comments

  • UnderMiSensi
    UnderMiSensi Members Posts: 955 ✭✭✭✭✭
    edited February 2014
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    6. Demand for commodities
    Ten percent of the world’s oil reserves and 40 percent of the world’s proven gold reserves are found in Africa, according to experts. In addition, Africa contains 90 percent of the world’s platinum reserves, about 80 percent of its cocoa and diamonds, 60 percent of its phosphate, 50 percent of its bauxite and chromium reserves, 20 percent of its titanium, and close to 15 percent of its oil and natural gas. As other countries like Brazil, Russia, India and China continue industrialize, they’re going to be demanding more and more of these commodities. (Source: US Geological Survey).
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    7. Domestic demand
    As people begin to make more money in Africa, domestic demand is set to rise. Consumer spending for goods and services in sectors like telecommunications/Internet services, transportation, wholesale and retail is increasing. Africa’s consumption has grown by $250 billion since 2000, according to the Global Insight United Nations Conference on Trade and Development, McKinsey Global Institute. Estimates show that 85 million African households earned $5,000 (USD) or more in 2008. The numbers of households with discretionary income is projected to rise by 50 percent until 2018, reaching 128 million. By 2030, the continent’s top cities could have a spending power of $ 1.3 trillion. African households spent $860 billion in 2008. And African consumers as a class will spend about $1.4 trillion in 2020.
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    8. Tax-exemption opportunities
    Ethiopia, among other African nations, offers significant tax incentives for import of investment capital goods. According to the Ethiopian Embassy, there is a 100 percent exemption on importing investment capital goods like plant machinery and construction material into the country. Also, products developed in Ethiopia are exempt from export tax.
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    9. Electricity investment
    Helping Africa meet its electricity needs can be the light at the end of the tunnel for small investment opportunities that have long-term benefits. Infrastructure development projects are usually the type of investment opportunities reserved for big, institutional investors and project finance endeavors; however, Africa’s need for electricity is so deep that even smaller investors can offer solutions, albeit, on a much smaller scale. There are a lot of rural communities in Africa that are far removed from electrical grids. Individual systems, small geothermal plants, or diesel generators can be supplied to these communities under carefully crafted arrangements that can turn a profit for the investor/provider.
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    10. Renewable energy investment opportunities
    The surge of renewable energy offers investment opportunities in Africa for small investors and small to medium-size businesses. Renewable sources of energy can be modular in their production and delivery; Africa is blessed with an array of renewable sources of energy like wind and solar.
    Source:
    http://money.usnews.com/money/personal-finance/mutual-funds/articles/2010/08/26/12-reasons-to-invest-in-africa?page=2
    http://myafricanplan.com/2011/02/52-reasons-to-invest-in-africa/
    http://www.ventures-africa.com/2013/06/almon-rallies-african-americans-to-invest-in-africa/
  • The Lonious Monk
    The Lonious Monk Man with No Fucks Given Members Posts: 26,258 ✭✭✭✭✭
    Probably a good idea, but there are twice many reasons for why African Americans should invest in African Americans.
  • UnderMiSensi
    UnderMiSensi Members Posts: 955 ✭✭✭✭✭
    Probably a good idea, but there are twice many reasons for why African Americans should invest in African Americans.
    Have you seen the unemployment rate and the strict access to loan for black business which indicates that America and Black Americans aren't investing much into Black Americans. Meanwhile Africa has plentiful resources and many countries are investing into Africa since African countries are expected to grow economically since they have so much scale and resources. In the US almost everything is bought up, but in Africa you get to start at the ground floor and cultivate wealth as their economy grows. I think it's safe to say that Investing in Africa and Starting Businesses in Africa is more than "probably a good idea".
  • zombie
    zombie Members Posts: 13,450 ✭✭✭✭✭
    Probably a good idea, but there are twice many reasons for why African Americans should invest in African Americans.

    I have found that one of the best ways to invest in yourself is to invest in others.
  • The Recipe
    The Recipe Members Posts: 10,570 ✭✭✭✭✭
    edited February 2014
    http://atlantablackstar.com/2014/02/02/10-reasons-african-americans-should-invest-in-africa/

    2. Africa is Untapped
    Ozii Obiyo, an international business consultant, used the term “untapped” to describe Africa’s potential for positive growth across many sectors, in a recent interview. For example, besides all the raw materials that are untapped, Africa has 60 percent of the world’s uncultivated arable land. Experts estimate that the continent’s agricultural output could increase from $280 billion (USD) –the estimate as of July 2010– to $ 500 billion (USD) by 2020 and as much as $880 billion (USD) by 2030. Investing in farming in African can be a lucrative venture.

    China is all up in Africas 🤬 right now, the US, UK been in it. If you believe its untapped I have some Summer Resort Time Shares in Alaska for sale.
  • UnderMiSensi
    UnderMiSensi Members Posts: 955 ✭✭✭✭✭
    The Recipe wrote: »
    http://atlantablackstar.com/2014/02/02/10-reasons-african-americans-should-invest-in-africa/

    2. Africa is Untapped
    Ozii Obiyo, an international business consultant, used the term “untapped” to describe Africa’s potential for positive growth across many sectors, in a recent interview. For example, besides all the raw materials that are untapped, Africa has 60 percent of the world’s uncultivated arable land. Experts estimate that the continent’s agricultural output could increase from $280 billion (USD) –the estimate as of July 2010– to $ 500 billion (USD) by 2020 and as much as $880 billion (USD) by 2030. Investing in farming in African can be a lucrative venture.

    China is all up in Africas 🤬 right now, the US, UK been in it. If you believe its untapped I have some Summer Resort Time Shares in Alaska for sale.

    🤬 try sooo hard to be negative that they miss the entire point of a message. SMH
  • The Lonious Monk
    The Lonious Monk Man with No Fucks Given Members Posts: 26,258 ✭✭✭✭✭
    Probably a good idea, but there are twice many reasons for why African Americans should invest in African Americans.
    Have you seen the unemployment rate and the strict access to loan for black business which indicates that America and Black Americans aren't investing much into Black Americans. Meanwhile Africa has plentiful resources and many countries are investing into Africa since African countries are expected to grow economically since they have so much scale and resources. In the US almost everything is bought up, but in Africa you get to start at the ground floor and cultivate wealth as their economy grows. I think it's safe to say that Investing in Africa and Starting Businesses in Africa is more than "probably a good idea".

    I don't really understand the point of this response. You point out yourself right at the beginning of your post that Black Americans aren't investing into Black Americans, which only proves my point that it's something that needs to happen more. Investing in Africa might be a better idea for the individual African American investors, but putting that money into the community here will pay off better for the community those African Americans actually belong to.
  • zombie
    zombie Members Posts: 13,450 ✭✭✭✭✭
    investing in Africa has a greater potential for profit than investing in the African American community.
  • UnderMiSensi
    UnderMiSensi Members Posts: 955 ✭✭✭✭✭

    zombie wrote: »
    investing in Africa has a greater potential for profit than investing in the African American community.

  • The Lonious Monk
    The Lonious Monk Man with No Fucks Given Members Posts: 26,258 ✭✭✭✭✭
    Didn't I just say that investing in Africa would be better for the investors? My original point was not about that. I was saying that it would be better for the community here to be invested here. Too much African American money leaves the community as it is.
  • The Recipe
    The Recipe Members Posts: 10,570 ✭✭✭✭✭
    The Recipe wrote: »
    http://atlantablackstar.com/2014/02/02/10-reasons-african-americans-should-invest-in-africa/

    2. Africa is Untapped
    Ozii Obiyo, an international business consultant, used the term “untapped” to describe Africa’s potential for positive growth across many sectors, in a recent interview. For example, besides all the raw materials that are untapped, Africa has 60 percent of the world’s uncultivated arable land. Experts estimate that the continent’s agricultural output could increase from $280 billion (USD) –the estimate as of July 2010– to $ 500 billion (USD) by 2020 and as much as $880 billion (USD) by 2030. Investing in farming in African can be a lucrative venture.

    China is all up in Africas 🤬 right now, the US, UK been in it. If you believe its untapped I have some Summer Resort Time Shares in Alaska for sale.

    🤬 try sooo hard to be negative that they miss the entire point of a message. SMH

    Its not about negativity, I am looking from a realistic and objective view. I have studied Africa extensively and been to several countries. Its a great continent with lots of resources but to act like they popped up yesterday and these resources are just up for grabs today and the average joe can go over their and invest and become a Millionaire or Billionaire is far fetched. Maybe and established mogul can go over and profit in conjunction with what the US is doing already as the article suggest, thats as much as I am buying.
  • Ajackson17
    Ajackson17 On the shoulders of Giants and Elders in history UniverseMembers Posts: 22,501 ✭✭✭✭✭
    zombie wrote: »
    investing in Africa has a greater potential for profit than investing in the African American community.

    This man got it. Why is everyone and their mama there?! Because of so much wealth to be made.
  • NothingButTheTruth
    NothingButTheTruth stew Members Posts: 10,850 ✭✭✭✭✭
    Then act on it. Y'all preach a lot, but don't do 🤬 .

    If you're one of the few that see the benefit in investing in another continent, set the path and maybe we'll follow. We need to start acting out on things a lot more, instead of brainstorming all the time.
  • zombie
    zombie Members Posts: 13,450 ✭✭✭✭✭
    Then act on it. Y'all preach a lot, but don't do 🤬 .

    If you're one of the few that see the benefit in investing in another continent, set the path and maybe we'll follow. We need to start acting out on things a lot more, instead of brainstorming all the time.

    People have already been doing this but you see alot of people are just not mentally prepared to take certain risk.
    they cannot get over the fear aspect of investing in another country especially africa and forget about living there.

    alot of black people with money are only a generation or two away from poverty they don't want to risk it and they don't want to be reminded of it.
  • The Lonious Monk
    The Lonious Monk Man with No Fucks Given Members Posts: 26,258 ✭✭✭✭✭
    That's true. But honestly, anyone who is trying to invest has to have the disposable income to do it. Cats can't just go investing money that they should be using for living or security. That's just not wise.
  • Ajackson17
    Ajackson17 On the shoulders of Giants and Elders in history UniverseMembers Posts: 22,501 ✭✭✭✭✭
    I will be investing soon. Worth the gamble and shot and more likely a huge payout in the end.
  • jono
    jono Right fist = power, left fist = unity Members Posts: 30,280 ✭✭✭✭✭
    Didn't I just say that investing in Africa would be better for the investors? My original point was not about that. I was saying that it would be better for the community here to be invested here. Too much African American money leaves the community as it is.

    This.
  • NothingButTheTruth
    NothingButTheTruth stew Members Posts: 10,850 ✭✭✭✭✭
    zombie wrote: »
    People have already been doing this but you see alot of people are just not mentally prepared to take certain risk.
    they cannot get over the fear aspect of investing in another country especially africa and forget about living there.

    alot of black people with money are only a generation or two away from poverty they don't want to risk it and they don't want to be reminded of it.

    I agree that a lot of people aren't there mentally, which is why they need someone to take that step for them and show them the way. The follower is just as important as the leader. I'm sure there are a lot of people with excess money waiting to be shown or told what to do with it.

    Pave the way and show that it is a good investment and many will follow.

    At this moment, I don't have the finances available to do anything right now, but I do plan on exploring the world and potentially retiring somewhere in Africa. It would be great if y'all had something set up by then lol.
  • NothingButTheTruth
    NothingButTheTruth stew Members Posts: 10,850 ✭✭✭✭✭
    edited February 2014
    Didn't I just say that investing in Africa would be better for the investors? My original point was not about that. I was saying that it would be better for the community here to be invested here. Too much African American money leaves the community as it is.

    I'm going to have to disagree with this. White people have the States locked down on all cylinders. They have set up a system that constantly bites at us mentally and physically. It will take centuries upon centuries to undo the damage, let alone create some kind of unity that will have any real effect on the country. At this point, the best thing you can do is help the people close to you and/or a select few individuals who actually know how to take advantage of your help.

    In contrast, with investing in Africa, it allows like-minded individuals to build together and potentially make a better haven for black people as a whole. We no longer have to deal with systematic racism. In this situation, we are the business men with the money and ideas, and we can now begin to establish true wealth and independence as a people.
  • The Lonious Monk
    The Lonious Monk Man with No Fucks Given Members Posts: 26,258 ✭✭✭✭✭
    Didn't I just say that investing in Africa would be better for the investors? My original point was not about that. I was saying that it would be better for the community here to be invested here. Too much African American money leaves the community as it is.

    I'm going to have to disagree with this. White people have the States locked down on all cylinders. They have set up a system that constantly bites at us mentally and physically. It will take centuries upon centuries to undo the damage, let alone create some kind of unity that will have any real effect on the country. At this point, the best thing you can do is help the people close to you and/or a select few individuals who actually know how to take advantage of your help.

    In contrast, with investing in Africa, it allows like-minded individuals to build together and potentially make a better haven for black people as a whole. We no longer have to deal with systematic racism. In this situation, we are the business men with the money and ideas, and we can now begin to establish true wealth and independence as a people.

    This makes no sense. You don't believe African American money can do anything to help the fractured African American community, but you somehow believe that the same money can somehow bridge an even bigger gap between Africans and African Americans? You think the little bit of money that African Americans can contribute would lead to some kind of Black paradise when Asian and European countries are investing hundreds and thousands of times more money than we ever could? Ok.
  • NothingButTheTruth
    NothingButTheTruth stew Members Posts: 10,850 ✭✭✭✭✭
    This makes no sense. You don't believe African American money can do anything to help the fractured African American community, but you somehow believe that the same money can somehow bridge an even bigger gap between Africans and African Americans? You think the little bit of money that African Americans can contribute would lead to some kind of Black paradise when Asian and European countries are investing hundreds and thousands of times more money than we ever could? Ok.

    What part of systematic racism do you not understand? Every time we try something like that in the US, they shut it down directly or indirectly, not to mention it's impossible to make anything black exclusive in this country. Your white people and even your own people will fight you tooth and nail over something like that. It will take 5 or 6 lifetimes to overcome all of those barriers.

    Not to mention, the ratio of black people to others in the US vs. African is way worse so it's easier to form black unity in a place where we're already the majority so to say.

    .. Btw the Asians and Europeans are not trying to build up the continent, they trying to take 🤬 out of it. There's a huge difference between building it up and working with the people vs. trying to take advantage of them. Furthermore, something like this will more than likely be run by natives of the continent who have experienced life in the US or US citizens who have family in Africa.
  • The Lonious Monk
    The Lonious Monk Man with No Fucks Given Members Posts: 26,258 ✭✭✭✭✭
    I don't even know where to start with this. You acknowledge that African Americans will fight other African Americans when it comes to trying to uplift the community, but you somehow believe that the Africans will welcome with open arms when they we try to do the same thing with their continent, a continent we haven't had any real connection to for centuries.

    And yes, I know that Asians and Euros aren't trying to build up the continent. That's not their role. They're trying to do what's best for their countries. That said, like with any partnership, if the business is done right, it can benefit both parties. It's on the African leadership to make the best decisions for their countries. So you trying to pain the Asian/Euro connections as parasitic is silly. And it still belies the fact that positive partnerships with them could still do a hell of a lot more than the paltry by comparison African American connection that you're pushing.

  • NothingButTheTruth
    NothingButTheTruth stew Members Posts: 10,850 ✭✭✭✭✭
    I don't even know where to start with this. You acknowledge that African Americans will fight other African Americans when it comes to trying to uplift the community, but you somehow believe that the Africans will welcome with open arms when they we try to do the same thing with their continent, a continent we haven't had any real connection to for centuries.

    And yes, I know that Asians and Euros aren't trying to build up the continent. That's not their role. They're trying to do what's best for their countries. That said, like with any partnership, if the business is done right, it can benefit both parties. It's on the African leadership to make the best decisions for their countries. So you trying to pain the Asian/Euro connections as parasitic is silly. And it still belies the fact that positive partnerships with them could still do a hell of a lot more than the paltry by comparison African American connection that you're pushing.

    Because of systematic racism bruh. A lot of us are mentally 🤬 up because of it. And Africans will come with open arms because they don't deal with systematic racism and because of the connections I described in my last post. The people leading the movement will more than likely have some kind of family connection with the continent to maximize efficiency.

    🤬 all those other countries trying to take advantage of Africa. We all saw how that turned out in the past, and their interactions with Africa in the current will turn out no different. Black people would be trying to create businesses and villages that will return the wealth back to the continent vs. those imperialists trying to drain the continent of its resources.
  • zombie
    zombie Members Posts: 13,450 ✭✭✭✭✭
    edited February 2014
    The black dollar will never circulate much in america the whole system is rigged and the forces that suck our money away are too strong. There is no hope for african americans as a community things are not going to get better. For black people in america the present is the future this is as good as it's going to be for black americans you are at the mountain top and the only place to go now is down.

    If smart and industrious african americans put the same effort into building business and insistutions in africa that they put into trying to make this society treat them like equals then the pay off for all concerned parties would be much larger than anything we have now.
  • kingblaze84
    kingblaze84 Bronx, NY birthplace of hip-hopMembers Posts: 14,288 ✭✭✭✭✭
    edited February 2014
    zombie wrote: »
    The black dollar will never circulate much in america the whole system is rigged and the forces that suck our money away are too strong. There is no hope for african americans as a community things are not going to get better. For black people in america the present is the future this is as good as it's going to be for black americans you are at the mountain top and the only place to go now is down.

    If smart and industrious african americans put the same effort into building business and insistutions in africa that they put into trying to make this society treat them like equals then the pay off for all concerned parties would be much larger than anything we have now.

    Co-sign, this sadly is the truth for the most part. Rent and mortgages, along with food is eating up the disposable income of many Blacks. Inflation isn't helping either. There's no superman out there waiting to rescue us, we gotta start taking education more seriously and parenting more seriously too if we ever hope to stay above water and be dry at the same time. So many are falling behind and I'm not sure anymore how they gonna come back. I've been reading some Booker T Washington lately and his philosophies make more and more sense by the day. We can't make major moves until ALL OR MOST OF US get the education and training we need to survive in this cold economy. I work with some Jews and there's no master conspiracy as to why so many are doing well in their community. Alot of it is that they simply value education more then almost everyone else, and we Blacks don't prioritize it the way we should. It's 🤬 frustrating to tell the truth, but more and more are getting there.

    There's some hope there though, I'm waiting for more to give themselves a chance.