Premium Essay

Investing in the New East African Community

In: Business and Management

Submitted By klandau
Words 3490
Pages 14
East African Investment
Trends leading to higher returns for East African portfolios.
The purpose of this paper is to be less comprehensive but more general about the trends that are developing in the East African Community expected to contribute to above average investment returns in both the short and long-term. While the information provided serves as a base of knowledge and introduction to the region, there is an expansive amount of information related to the topics below through the World Bank, the African Development Bank Group, African Investment Associations, and numerous periodicals. Specific information on privatizations is available at the Multilateral Investment Guarantee Agency’s PrivatizationLink.
Africa is a dynamic landmass. Home to some of the world’s richest and poorest people in the world, this little explored continent has a unique story and seen a struggling path of development leaving more than 600 million inhabitants living on less than $2 a day PPP. Although much of Africa is, developmentally speaking, several generations behind the United States and other western nations, there is reason to believe that returns from human and physical infrastructure, foreign direct investment, and international aid organizations will set the stage for sustainable high growth opportunities in the future. While the continent as a whole shares in the struggles for development, the size of the landmass is four times that of the US and is by no means a homogenous region. Africa is as diverse economically and culturally as it is expansive. After breaking the continent into regions one still leaves ample room for misleading generalizations. Therefore, it is important to refine data to a particular market to represent economic reality. The focus of this paper is on East Africa. In General, East Africa typically includes over 19 countries...

Similar Documents

Free Essay

Community Analysis

...factory jobs, where people hoped for a new and better life. Detroit’s population is a very cultural and diverse population who’s goal was to secure a good job, buy a home in a nice neighborhood and raise their family. Similar to the theme song for the television show “The Jeffersons”, people who moved to the Eastside of Detroit, particular zip code 48205 believed they were “moving on up”. Zip code 48205, also known as the Osborn Community is located on the northeast edge of Detroit, bounded by East Eight Mile Road, McNichols Road (Six Mile), Gratiot Avenue and Van Dyke. From 1960 - 1980 the area was occupied by people of all diverse cultures, backgrounds and nationalities, including African Americans, Whites, Hmongs, Italians and Sicilians. Within the Osborn community there is an area named “Mohican-Region” which was once locally called “Little Italy” due to the heavy population of Italians and Sicilians that populated the area. Eventually residence of Little Italy got winded of the drug traffic affecting the blocks near them and quickly move away selling their homes to middle income blacks by 1990 almost all of Detroit Little Italy area was gone! Osborn’s commercial district designated for shopping was located at the Gratiot and 7 Mile corridor. Once a thriving area occupied by department stores such as Federal’s, Montgomery Wards and Fretter Appliances or Kroger’s which is a chain grocery store was no longer. Driving through the community one can’t help but to notice the......

Words: 1503 - Pages: 7

Free Essay


...Young African Leaders Initiative we are empowering and connecting young people. Connecting young people from across the continent, who are filled with energy and optimism and idealism and are going to take Africa to new heights, and these young people are not weighed down by the old ways; they are creating a new path, and these are the elements for success in the 21st Century.” President Barack Obama Kasarani Speech, Nairobi, July 26, 2015 With more than 60% of its population made up of young people below the age of 35, Africa is quickly becoming the home to the world’s largest population of young people. Who will empower and lead young Africans to shape the future of the continent? Will these young citizens be able to positively influence and impact business and entrepreneurship? Will they be able to offer expertise to sustain meaningful and relevant nongovernmental organizations? And who of these young people will be able to serve as functional and ethical administrators in public offices? The answers to these questions underscore the need for strong, passionate, and results-oriented young leaders. YALI offers three avenues for young leaders to develop their skills and to enhance their experience: (1) Mandela Washington Fellowships, (2) YALI Network, and (3) Regional Leadership Centers in Africa. Information on the other components can be found on the last page of this brochure. YALI RLC East Africa Countries Burundi, Central African......

Words: 1834 - Pages: 8

Free Essay

Female Circumcism in Africa

...Female Circumcision in Africa Amber Triplett June 23, 2015 Diversity: Dr. Saleem Introduction There are an estimated 130 million girls and women alive today whose human rights have been violated by female genital mutilation/cutting (FGM/C). This harmful practice not only affects girls and women in Africa and the Middle East, where it is traditionally carried out, but also touches the lives of girls and women living in migrant communities in industrialized countries. Although collaborative advocacy has worked over recent decades has generated widespread commitment to end this practice, success in eliminating FGM/C has been limited, with some significant expectations. This harmful practice is a deeply entrenched social convention: when it is practiced, girls and their families acquire social status and respect. Failure to perform FGM/C brings shame and exclusion. Understanding how and why FGM/C persists is crucial for developing strategies that are most likely to lead to the abandonment of the practice. FGM/C affects far more women than previously thought. Recent analysis reveals that some three million girls and women are cut each year on the African continent (Sub-Saharan Africa, Egypt, and Sudan) (Yoder, 2004). What is female circumcision? Female genital mutilation/cutting (FGM/C) includes a range of practices involving the complete or partial removal or alteration of the external genitalia for nonmedical reasons. The procedure may involve the use of unsterilized,......

Words: 1717 - Pages: 7

Premium Essay

9/11 Was Planned by Us Government not declared that the U.S. government planned 9/11 but there is indefinable proof that they were involved. While Bill Clinton was in office, one of his top projects was to capture Osam Bin Laden, because one of the few things he did was bomb the African embassy in 1998. In 2001 Bush became president. Bush was so anti Clinton that he order all Clinton projects to be canceled or given lowest priority including the Osama Bin Laden project. Not only that Bush had a close relationship the the Bin Laden family. There had also been other coincidences such as the Bush family being good friends with Saudi Arabia over oil, making it more of a reason to invade Afganistan so we can be station in the middle east and have easy excess to oil. One of the main reasons 9/11 occur was because of George W. Bush, for those of you who don't know him, let me give you his background check. In 1968 Bush Jr. joins the Texas Air National Guard. While a member of the Guard, Bush meets and befriends Jim Bath, a former Air Force pilot. 1976 Bush Jr. becomes director of the CIA. During those years he trains Saudi royal family gaurds, building a close relationship with the Saudis. Bush's friend Bath is hired by the Bin Laden's as their representative, investing in several businesses. 1978 Bath invested $1 million dollars of the Saudis money in Bush's oil company Arbusto 78. 1987 Bush received $25 million dollars worth in stock to his failing oil company that was connected to a Middle Eastern bank.......

Words: 652 - Pages: 3

Free Essay

Cultural Sensitivity cultural differences. It helps us become more culturally sensitive to the community we are in, making us more culturally competent and aware, understanding that cultural sensitivity is a finite achievement. Cultural sensitivity is a set of skills that helps us learn about various kinds of people, cultures that are different from ours thus teaching us how to serve better in a community. Cultural Sensitivity enables us to treat people of different classes, genders, race, religion in an appropriate manner and respect and judge them on their personality, value their worth and what they bring to the table. It is a great concept and it enables us to be closer to different kinds of people from all over the globe. Belonging from one of the most culturally diverse countries in the world, I have seen how the littlest thing can offend a person. Thus, being sensitive is crucial- be it in the corporate world or in your daily life. Something as simple as shaking hands with a lady in a country where it is considered a taboo can lose you an enormous contract. Cultural Sensitivity does not only imply having the knowledge of how other cultures are different from your own. But it is also about being aware of the social, racial and cultural differences existing within societies. This can also be termed as multiculturalism. Global icon Shahrukh Khan was stopped and searched at John F. Kennedy Airport, New York by guards who did not know who he was but...

Words: 951 - Pages: 4

Premium Essay


...Topic #7 : Structural Adjustment ------------------------------------------------- Engy Naguib ------------------------------------------------- ‘Despite having their roots in a mixture of internal and external factors, the most appropriate response to current problems of economic performance in countries of the Middle East is to pursue stabilization and structural adjustment policies, supported by IMF/World Bank lending packages.’ Critically appraise this statement with reference to the recent experience of one MENA country of your choice. Many MENA countries have been facing significant economic hardships. This has forced the international community for economic intervention - serious interventions - to protect their interests in the form of economic reforms. Economic Reform and Structural Adjustment Programs had its failures, reflecting the failures of the post- Washington Consensus neo-liberal interventions in developing countries (Mitchelle, 1999). These failures have to reflect on choices of MENA countries as they are facing a cross-road. Forms of intervention varied in many ways after WWI, when political imperialism was done with its role in fostering mercantilist and conventional capitalism gains (Dillard, 1988). But these powers had to be maintained, so the economic intervention was more appealing than political, during the second half of the twentieth century. This paper argues that developing countries were victims of political and economic powers struggle...

Words: 1183 - Pages: 5

Premium Essay


...of the earliest mission schools in the country at Rabai in 1846 in coast region. With the improvement in infrastructure including roads and communication networks, the new revolution of the mind started penetrating to the interior of the Kenya. Instantly many people became aware of the necessity of education and people like Jomo Kenyatta, Charles Njonjo, peter Koinange, Tom Mboya among others Kenyans political icons furthered their education abroad. Earliest schools in Kenya included the school of Rabai near Mombasa established in 1846, Nairobi school established in 1902, friends school Kaimosi, now the Kaimosi friends primary school established in 1906. There were a total of 18 schools by the year 1932. After independence what followed was tremendous campaigns that acted to be an eye opener for all Kenyans. Most individuals in the political spheres started the new hunger and craving for education that helped them retain political power. Kenya adopted various forms of education system including the 7-4-2-3 system that was shared among the east African community. In this system it meant 7 years in primary school, 4years in secondary school, 2years in high school and 3-5 years in university. Later due to split of EAC Kenya adopted the 8-4-4 system which was introduced by Daniel Moi in 1985 to spearhead a new dimension in education where individuals were now to spend less years in schools. During this...

Words: 1354 - Pages: 6

Premium Essay

Mitigating Prison Violence

...Mitigating Prison Violence Cynthia Evans CJ522: Comparative Correctional Systems June 17, 2014 Mitigating Prison Violence Violence in prison systems remains to be a persistent problem among enforcers and inmates alike. Not only does it compromise inmate safety and institutional security, it distorts the purpose of prison systems as penitentiary systems meant to discourage criminal behavior. Adding to this complication, the problem is present in nearly all prison systems worldwide, with some systems more prone to it than others. In America, homicide inside jails and state prisons has remained relatively low in recent years at 3 per 100,000 on average (Mumola, 2005). The same cannot be said for Brazilian prisons, however; in 2013 alone, around 60 inmates were killed in Brazilian prisons, and three others died through decapitation and heavy mutilation at the beginning of the year (Cawley, 2014). Violence in prison systems is by no means limited to physical violence or individual assaults. In the first place, “violence in prison” is a broad category, which involves a range of situations and actions from certain parties, with violence as their common factor. It may involve riots, mutinies, and individual assaults. It may also, in fact, be taken to mean any form of violence—usually physical and/or sexual—done by inmates to fellow inmates, or prison staff to inmates. For example, while physical violence is an all-time low in American prisons, sexual violence is on the rise......

Words: 1472 - Pages: 6

Premium Essay

Real World Capital Markets Are Neither Completely Segmented nor Integrated, but Fall Somewhere in Between

...• Importance of Stock Markets and Connection to the Countries’ Economies “Financial markets perform the essential economic function of channeling funds from households, firms, and governments that have saved d surplus funds” (Mishkin, 2009, p.25).The primary economic functions of financial markets are; price discovery, liquidity, and reduced transactional costs (Drake & Fabozzi, 2010). Stock markets are vital for business as they directly impact on decision making in that price discovery of shares directly influences “the amounts of funds that can be raised by selling newly issued stock to finance investment spending” (Mishkin, 2009, p.5). Furthermore, the liquidity enables investors’ trade. There is a ready market for assets that can be done through primary and/or secondary equity markets. They reduce transaction costs in the sense that explicit and implicit costs in connecting different counterparties are eliminated (Drake & Fabozzi, 2010). It effectively acts as a meeting point for buyers and sellers of different asset classes to connect. The regulatory element means that all the transactions executed in stock markets are secure and meet certain defined standards that obligate the counterparts to accede to. Ludvigson & Steindel (1999) undertook empirical studies that revealed the correlation between stock market importance and its effect on consumption. They noted that cyclical movements of the stock markets had direct impact on consumption trends. Essentially,......

Words: 1101 - Pages: 5

Free Essay

Free Primary Education

...Actualizing Free Primary Education in Kenya for Sustainable Development by Mbatha Mathooko, Ph.D. Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya Abstract The right to education is one of the basic human rights stipulated in the Universal Declaration of Human Rights, 1948. In Kenya, this right has recently been livened through the launch of the Free Primary Education program (hence FPE) by the newly elected NARC government. The FPE program is faced with major challenges that range from lack of facilities, few teachers, over-age children, street children, no books, lack of finances and socio-cultural impediments such as HIV-AIDs. The FPE has been received with mixed feelings from different sections of the society. While some have expressed feelings of discontentment, failure, betrayal among others, many low income members of the population view it as a God sent opportunity. While a lot of concern has been raised, little has been advanced concerning the propagation of the actual learning itself. This paper seeks to underscore some of the pertinent issues concerning actual instruction in the FPE program. A glaring gap, which poses a major challenge to the success of the FPE, exists in terms of the language of instruction. The existing language policy disregards mother tongues as tools of disseminating knowledge and does very little to promote them. The paper suggests the training of teachers to equip them with skills in mother tongue......

Words: 3601 - Pages: 15

Free Essay


...© Kamla-Raj 2004 J. Soc. Sci., 8(1): 23-27 (2004) Exploring the Forms of Child Abuse in Nigeria: Efforts at Seeking Appropriate Preventive Strategies Ifeyinwa Annastasia Mbakogu CHILD ABUSE IN THE NIGERIAN SOCIETY It may be difficult discussing the issue of child abuse in Nigeria without eliciting the African perspective. This is because first as Africans (and later developing nations), there exists a common heritage that seem to signify that similarities in culture or traditions may indicate a commonality of perceptions toward issues regarded as child abuse and eventually, similarities in strategies for addressing the problem. Moving into the African or Nigerian Perspective It is quite a formidable task formulating an effective strategy for the prevention of child abuse. To tackle this problem Marzouki (2002) made an interesting comparison between prevention strategies for child abuse or handicaps and medical management: What measures should be taken to avoid the so-called ‘street children’ pheno-menon? The preventive measures in handicap are different from medical management in type and level. For instance, when a child has a cerebral palsy due to prematurity, he would need drugs and physiotherapy. But preventing prematurity would need, among other things, health education and pregnancy monitoring. Like cerebral palsy, or seizures, sexually abused street children are merely a symptom, but the causes are derived from elsewhere. Of course it [is] the symptoms that have...

Words: 3119 - Pages: 13

Free Essay

The Impact of Chinese Investments in Africa

...Why is China investing in Africa? Evidence from the firm level By Wenjie Chen, David Dollar, and Heiwai Tang1 August 2015 Abstract China’s increased trade with and investment in Africa has boosted the continent’s growth rate but has also generated considerable controversy. In this paper we investigate China’s outward direct investment (ODI) in Africa using macro and micro data. The aggregate data on China’s ODI in African countries reveal that China’s share of the stock of foreign investment is small, though growing rapidly. China’s attraction to resource-rich countries is no different from Western investment. China’s ODI is uncorrelated with a measure of property rights and rule of law, whereas Western investment favors the better governance environments. As a result, Chinese investment in strong and weak governance environments is about the same, but its share of foreign investment is higher in the weak governance states. The micro data that we use is MOFCOM’s database on all Chinese firms investing in Africa between 1998 and 2012. We use key words in project descriptions to code the investments into 25 sectors. This database captures the small and medium private firms investing in Africa. Contrary to common perceptions, there are few projects in natural resource sectors. Most projects are in services, with a significant number in manufacturing as well. In our country-sector-level regressions based on firms’ transaction-level data, we find that Chinese ODI is profit-driven...

Words: 7801 - Pages: 32

Free Essay

Chinese Investments in Africa

... Extremely competitive  and strongly backed by the state, Chinese  multinational corporations are on an acqui‐ sition spree that is bagging key resources  and market share across the developing  world. In many respects it is Africa, a conti‐ nent rich in natural resources and under‐ex‐ ploited markets that has only limited histor‐ ical ties to China, which is serving as an at‐ testing ground for the new Chinese multina‐ tional corporation.   China’s investments in Africa have become  ever more diversified in recent years. While  oil and mining remain an important focus,  Chinese foreign direct investment (FDI) has  flooded into everything from shoe manufac‐ turing to food processing. Chinese firms  have also made major investments in Afri‐ can infrastructure, targeting key sectors  such as telecommunications, transport,  construction, power plants, waste disposal  and port refurbishment. Given the scale of  Africa’s infrastructure deficit, these invest‐ ments represent a vital contribution to the  continent’s development. There are many  examples of China’s flourishing interest in  African infrastructure.  For instance in Zam‐ bia, Chinese investors landed a deal...

Words: 2222 - Pages: 9

Free Essay

Investad Eiu Africa Report 2012 En

...Africa’s changing image 8 III. Barriers to investment 11 IV. The new investment case for Africa 15 V. Investor perceptions versus market reality in key markets 18 Conclusion 20 Appendix: survey results 21 1 © Economist Intelligence Unit Limited 2012 Into Africa Institutional investor intentions to 2016 Foreword Africa is no longer a leap of faith Even well informed observers have written off Africa as riven by war, corruption and poverty, but since the emergence of China and India as economic growth engines, many are now asking whether this continent of one billion people can also achieve its own “economic miracle” . These are still early days but there is no doubting the promising signs, politically and economically. At a time of huge change, societies are showing that they can adapt, on the whole, peacefully. In the last year, Nigeria, Tunisia, Zambia and Rwanda have held elections hailed as free and fair by international observers, while a referendum created the new nation of South Sudan. Along with greater political stability, has come policy continuity and improved governance -- prerequisites for attracting the long-term investment to generate sustainable economic development. As this report shows, many global institutional investors are now seriously intending to take a significant step into Africa. This is obviously good news, as it shows that large pools of capital are available to sustain......

Words: 11052 - Pages: 45

Free Essay

Chinese Presence in Africa the sense that, China, one of the world fastest growing economy has been considered as a new competitor in the competition of securing a long term energy supplies around the globe. As China’s economy is rapidly growing and in other to acquire the needed resources to support its rapid growth, the government have taken a great step in focusing in other part of the world to secure oil which they deemed necessary coupled with other raw materials across the world. The rising economy of China was stated to have grown in an extraordinarily large number of nine (9) per cent per annum in the last twenty five (25) years whereas its consumption of energy has been said to have doubled to the extent that it outstripped the production of domestic energy. (Africa-practice report, 2007, p.2) Significantly, to catch up with the demand of its market, the economic powerhouse has channelled its attention to Africa. A continent widely known for its social and political unrest, though Chinese active involvement in Africa is a necessary mission in other for them to secure new export market for their manufactured goods, there are several strategic ways adopted by the Chinese government in their bilateral relation with African states; however, amongst the strategic ways is by significantly carrying out investment in the continent thereby increasing and securing a mutual relationship with various African nations they made contact with. On one hand, this article will pinpoint and elaborate on......

Words: 4285 - Pages: 18