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jerryking : frontier_markets   20

Africa Bruised by Investor Exodus - WSJ
By MATINA STEVIS
Feb. 21, 2016 5:30 a.m. ET

Fund managers say assets in African nations are being punished because of their disproportionate reliance on resources and failure to use the commodity boom of recent years to industrialize their economies. In Angola, Nigeria and Equatorial Guinea, oil counts for more than 90% of export revenue, while copper counts for more than 70% of export revenue in Zambia.

“There’s a reaction to a year ago, to the euphoria of new investors coming into Africa,” said Stuart Culverhouse, an economist with Exotix, a London-based frontier fund and advisory firm. “They are trying to get out now, and they are being quite indiscriminate.”

The upshot is that frontier investors are moving their money from Africa to Asian countries like Pakistan, Bangladesh and Vietnam; net energy and commodity importers which have shown more commitment to industrialization.
Africa  investors  private_equity  commodities  China  Barclays  exodus  frontier_markets  natural_resources 
february 2016 by jerryking
In Lagos, the 1% Takes Stock
By NINA BURLEIGH APRIL 25, 2014

A burgeoning wealthy class is settling into one of Africa’s fastest-growing cities, attracting designers, world-class architects and a growing creative community that seeks to preserve its culture through art and fashion.
Nigeria  Nigerians  African  luxury  high_net_worth  Lagos  frontier_markets  cosmopolitan  crony_capitalism  The_One_Percent  political_elites 
april 2014 by jerryking
Blackwater's Founder Blames U.S. for Its Troubles - WSJ.com
Nov. 17, 2013 | WSJ |By Dion Nissenbaum.

Now, Mr. Prince says, he is done working for t he U.S. government. He has invested millions in setting up Frontier Resource Group, a private-equity firm that operates in more than a dozen African countries. The firm is building an oil refinery in South Sudan, owns a cement factory in the Democratic Republic of Congo, conducts aerial gas and oil surveys across the continent, and is looking at taking over idle oil wells damaged by insurgents in Nigeria, he said.
security_&_intelligence  entrepreneur  private_equity  memoirs  oil_refiners  CIA  Blackwater  books  drones  covert_operations  Africa  political_risk  frontier_markets  natural_resources  Leon_Panetta 
november 2013 by jerryking
Underpricing risky business
February 1, 2013 | G&M report on Business pg B2 |by David Parkinson.

As energy and mining reserves have become increasingly expensive to find in other, more stable parts of the world, Africa's dangers have been glossed over in the quest to cash in on the continent’s still relatively undeveloped resources. Companies have been ignoring the risky reality, and investors have been underpricing it...Africa's significant growth potential has generated optimism, however, the geopolitical risks facing investors in Africa remain, for the most part, underestimated.”
The biggest threat to business in Africa, he argues, is “re1igious/ ideological militancy"--especially from Islamist/jihadist groups - which he says “has been vastly underestimated, and will pose significant risks to foreign investors in much of Africa."
He believes companies and their investors are underpricing the risks of doing business in Aŕrica, including rising security and insurance costs and cant project delays that could come from security threats, military conflicts or regime changes....Until the market starts pricing risk into African resource investments before a crisis forces the realization upon it, there will be little incentive for companies to seek less risky and less corrupt places to put their money.
And there will be more harsh and costly awakenìngs for investors who are themselves willfully blind to the risks.
underpricing  risks  Africa  natural_resources  political_risk  geopolitics  Mali  war  underestimation  frontier_markets  corruption  mining  mispricing  Islamists  jihadis  willful_blindness 
february 2013 by jerryking
Emerging from the frontier
Nov 21st 2012 | | The Economist from The World In 2013 print edition | by Ngozi Okonjo-Iweala, Nigeria’s finance minister and co-ordinating minister for the economy

Africa’s growing economic ties with the BRIC economies, particularly China, are well known. As an example, the continent’s trade with China increased from about $10.6 billion in 2000 to $166 billion in 2012. In my own country, Nigeria, trade with China increased over the same period from less than $1 billion to $7.8 billion. In 2013 China will become the greatest influence on the continent as its new leaders deepen the strategic relationship with Africa beyond natural resources. At the same time, civil-society organisations in Africa will demand greater transparency from China in government-to-government relations, and more community engagement from Chinese companies.
Africa will become the next preferred destination for labour-intensive manufacturing

I see many opportunities here for private investors in Africa. As Asia’s economies slow and its wages rise, Africa will become the next preferred destination for labour-intensive manufacturing of products such as garments and shoes. Its large domestic market of 1.2 billion people will serve as a further attraction for low-cost, light manufacturing.
China  frontier_markets  emerging_markets  women  South-South  Africa  private_equity  BRIC  infrastructure  Nigeria  Ethiopia  Angola 
january 2013 by jerryking
Carlyle Group to Make Africa Investment - WSJ.com
November 13, 2012 | WSJ | By PETER WONACOTT.
Carlyle Group to Make Africa Investment
Private-Equity Firm Is Latest to Follow Rush Into Continent With Sub-Saharan Fund; 'We're Here for the Long Haul'
Africa  private_equity  emerging_markets  frontier_markets  Carlyle_Group  long-haul 
november 2012 by jerryking
Merrill Lynch's Chief Investment Analyst Pushing Africa as 'Final Frontier' to Investors | Growth, Cent, Africa
25 July 2007 | Globe & Mail | Angela Barnes.

Try to find another version of this extract in ProQuest or the Toronto public library.
Merrill_Lynch  Africa  frontier_markets 
june 2012 by jerryking
Untapped and Growing, Frontier Markets Beckon - NYTimes.com
September 28, 2011, 6:42 pm Mergers & Acquisitions | Special Section Fall 2011
Untapped and Growing, Frontier Markets Beckon
By AZAM AHMED and MICHAEL J. DE LA MERCED

The education of investors has followed recognition of a pattern in frontier markets. The first deals struck are those related to commodities like oil or metals. As countries grow more advanced, consumer goods companies and media and telecommunications concerns are the next to be scooped up.
Africa  private_equity  Wal-Mart  JPMorgan_Chase  local_knowledge  Tanzania  Zimbabwe  joint_ventures  frontier_markets  emerging_markets 
september 2011 by jerryking
Think Globally, Deal Locally - NYTimes.com
September 28, 2011,
Think Globally, Deal Locally
By BEN PROTESS

forging deals in developing regions comes with a unique set of uncertainties, including political, economic and regulatory risks. Wal-Mart Stores pulled out of Moscow late last year, citing an inhospitable climate for acquisitions. Ikea, fed up with corruption in Russia, suspended further investments there in 2009.

In Brazil, rising inflation has spooked investors, contributing to a 26 percent decline this year in the MSCI Brazil index.
private_equity  emerging_markets  decline  deal-making  globalization  Indonesia  investment_banking  risks  frontier_markets  uncertainty  political_risk  regulatory_risk  economic_risk 
september 2011 by jerryking
For Deals, Wall Street Goes East - NYTimes.com
September 28, 2011, 6:48 pm Mergers & Acquisitions | DealBook Column
For Deals, Wall Street Goes East
By ANDREW ROSS SORKIN

“The interest among Western institutional investors to getting exposure to China, Brazil and India is clear. It’s a big mind shift,” said Sarah Alexander, president of the Emerging Markets Private Equity Association. And she added, they’ve been looking farther afield. “You’ve got Indonesia on the map, Colombia, Peru.”
Andrew_Sorkin  Carlyle_Group  Wall_Street  private_equity  institutional_investors  emerging_markets  globalization  David_Rubenstein  dealmakers  Blackstone  frontier_markets 
september 2011 by jerryking
U.S. Companies Race to Catch Up in African Markets - WSJ.com
JUNE 6, 2011 | WSJ | By JAMES R. HAGERTY And WILL CONNORS.
US. companies' game of catch-up shows the perils of waking up late to
the next big frontier market, Africa. The continent's economy is
forecast to grow to $2.6 trillion in 2020 from $1.6 trillion in 2008,
fueled by booms in mining, agriculture and development of ports, roads
and other infrastructure, according to McKinsey Global Institute. The
middle class is growing, and total household spending now exceeds that
of India.
Cummins  Africa  China  U.S.  frontier_markets  GE  Google  ADM  Wal-Mart  Harley-Davidson  Caterpillar 
june 2011 by jerryking
Globalization 2.0: emerging-market cross-pollination
Oct. 1, 2010 |G& M| Chrystia Freeland. Globalization 1.0:
2-way exchange between west & east or north & south: E.g.
Western companies setting up call centres in India or mfg. goods in
China, China investing in U.S. T-bills, . Globalization 2.0: the
biggest deals & most important capital flows will be between
emerging mkts., without stopping over at Heathrow or JFK. ..Stephen
Jennings of Renaissance Group, a Moscow-based I-bank with ambitions to
be the premier provider for intra-emerging-mkt. capital flows. “MNCs’
advantages (know-how & capital) have been neutralized by an
inability or reluctance to grow explosively in complex, foreign
environments,” “In many emerging mkts. and in an incr. # of industries,
the mkt. leaders have local roots: metals ( Indian), aluminum (Russian),
fastest-growing & largest banks in China, Russia & Nigeria are
domestic.” Yet Western MNCs (e..g GE, Coca-Cola & HSBC) understand
the opportunity in emerging mkts.& agile in adapting to local
conditions.
Chrystia_Freeland  globalization  emerging_markets  BRIC  capital_flows  Fareed_Zakaria  Renaissance_Capital  South-South  cross-pollination  frontier_markets 
october 2010 by jerryking

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