Africa – An Economic Giant? Part III

Dear reader

a few weeks ago  I published an article, reflecting in brief statements which haven been made by popstar and Africa-activist Bob Geldof. Some of you might have read the article via our newsletter (subscribe here).

I have returned from my summer vacation and present you a few more in-depth thoughts on the topic “Africa – an economic giant?”, reflecting another three statements. Today I continue with the third of a total of five statements.

3. Statement

Europe and the US are hypocrites. They are investing money in China and in the Middle East – Regions far away from being democratic. At the same time, they worry about investments in Africa for the continent is not democratic.

What is wrong with European and American investors?

Here is my answer:

There are plenty of individual European and American investors that are active in Africa. But, we should acknowledge that the time horizon might be longer than what we typically find in well established markets –

hence, family dominated firms may be particularly attracted to African investments, when there might be less of a quarterly earnings pressure.

I have always mentioned A.P.  Moller of Copenhagen (the owner of Maersk Line / Safmarine).

Kind regards,
Peter Lorange

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