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Lack of investment is the real tragedy in Africa
June 10 2005 | FT | By Kurt Hoffman.

The moral question of our time has little to do with public money and everything to do with private capital.

The calls for rich taxpayers' money to eliminate poverty, either as debt relief or as aid, drown out the whoosh of billions of dollars of private capital that is circling the globe, looking for a place to land and multiply. The real tragedy is that only 1 per cent of it finds its way to sub-Saharan Africa.

This vote of no confidence in Africa on the part of global investors is seen by some as a justification for doubling aid. But this is confounded by the fact that Africa delivers some of the highest returns on investment on the planet.

Even more intriguing: despite the misperception that capital shortages are holding back development, banks across east, west and sub-Saharan Africa are actually flush with money. Yet they refuse to lend it to those who can do the most with it: millions of disenfranchised, small-scale African entrepreneurs who could lift Africa out of poverty if given half a chance.
Africa  investments  sub-Saharan_Africa  investors  ROI  private_equity  misperceptions  disenfranchisement  mom-and-pop  capital_shortages  small-scale  entrepreneur 
august 2012 by jerryking
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