Mozambican Economy Still Growing Strong

Mozambique’s economy rests on the back of aluminum ingots, natural gas and electricity exports. The ingots come from Mozambique’s largest factory, the MOZAL aluminium smelter on the outskirts of Maputo; the electricity from the Cahora Bassa dam on the Zambezi is sold to South Africa and Zimbabwe; while natural gas is produced by the South African petro-chemical giant Sasol in Inhambane province, and sent by pipeline to its plants in the South African town of Secunda. Most of the other 30 per cent of export earnings come from tobacco, prawns, sugar, cotton and cashew nuts.

On December 13th, The Minister of Planning and Development, Aiuba Cuereneia, told the country’s parliament, the Assembly of the Republic, the economy is expected to grow by 7.9 % this year.

The graph below shows the steady groth Mozambique has experienced since the end of its civil war in 1992.  The only exception is in 2000, when a banking crisis resulted in a massive government bailout and the worst flooding in over a century struck the south and center of the country devastating economic infrastructure and transport links.

Entrepreneur Scott Griffin talks about spending two years in the Flying Doctors Service in Africa

Note: (1:13) ”The inter-relationship between people is so much more important than the transaction, whereas here sometimes the transaction is equal to or perhaps more important than the participants. And its that, that comes through again and again in Africa”.

http://feedroom.businessweek.com/index.jsp?fr_story=24e5f1a2747985722a98a824a4e2fb9c2ca832e6&rf=fr_std

Understanding culture and most of all, respecting the power of culture in Africa, will not only lead to mutually beneficial gains from trade and investment, but will perhaps teach us something more valuable about our humanity.

African markets in ‘early stages of a new dawn’

African markets are “in the early stages of a new dawn” as the region becomes more “hungry for success”, according to a fund management company.

Investec Asset Management said it hopes to see “many years of positive headlines” for the African economy and markets, with Nigeria being observed “very closely”.

Strengthening rand has negative effect on commodity exporters..

JOHANNESBURG (Reuters) – A resurgent South African rand battered resource stocks like fuels producer Sasol on Tuesday as the currency touched its highest level in nearly four months. The JSE’s Top-40 index of blue-chip stocks shed 0.68 percent to 21,339.92 points, while the All-share index lost 0.63 percent to 23,555.11 points. The rand tested the key psychological level of 7 to the dollar, bolstered by a firmer euro and positive emerging market sentiment.

Nigeria may be the next emerging markets gem

By Chuka Mordi

Published: December 4 2006 02:00 | Last updated: December 4 2006 02:00

Outside South Africa, sub-Saharan African capital markets represent the last frontier for the unhindered flow of global capital. The problem has always been the absence of the combination of scale and local expertise required to attract global fund managers.

Microloans via our friends at Kiva

Watch this video and see how a guy in San Fran helps a lady in Uganda add value to her peanut butter production.  Also, see a lady explain why Molly should not hire her son with some of a loan for her business because he might “be capable of stealing or even disorganizing the business”.  Notice the laughter that ensues after this peer review/due diligence.

http://www.pbs.org/frontlineworld/stories/uganda601/video_index.html

Africa Business Environment

I have been to more than one presentation at Syracuse University that have highlighted the racism, intended or not, inherent in the Western media’s coverage of Africa.  While there are plenty of arguments to be made on this topic, I want to devote this site to a new type of coverage via the blogosphere on some of the uncovered treasures that lie within the African business world and try to get as much feedback and commentary along the way.

What this site will focus on are signs and signals of entrepreneurship in Africa and what many people are missing when the picture is predominantly in tune with the unfortunate events coming out of Africa.