Africa….just another BRIC in the wall?
Thu 28 March 2013
It is interesting to note that last week a meeting was held on China’s Hainan island between President Zuma and his counterparts from Brazil, Russia, India and China.
Last year Jim Elliott and myself supplied an article to STEP which covered this subject….unfortunately we decided on ABRIC rather than BRICS, but that said I would still suggest Africa should be included!
The article is included below:
Richmond Fiduciary Group in Africa
Richmond Fiduciary Group established a client base, stemming back to the early 1990s, in southern Africa. ‘While others turned their backs on Africa, due to the complications of understanding the continent, and compliance issues in particular, Richmond embraced these challenges, recognising the huge potential,’ says Director Jim Elliott TEP.
The natural wealth of Africa is indeed staggering but it has always been held back by internal politics and conflicts. However, very slowly, various countries have recognised the importance of adopting international principles and how this can improve the welfare of all concerned.
Aside from the obvious success of South Africa, countries like Namibia and Botswana have excellent economies, infrastructure and education policies, which makes these countries shining beacons of success. For the future, should they overcome sanction demands, Angola and the Democratic Republic of Congo may be considered in the same light, with the former’s GDP five-year forecasts staggering, and the latter’s mineral wealth simply off the scale.
So, as fiduciary companies realise that many First World opportunities are drying up, attention is focused on the BRIC countries (Brazil, Russia, India and China), while Africa does not appear on many radars. However, as natural resources become harder to find and become more in demand then Africa is literally sitting on a gold mine, if it can embrace the international community. Chinese investors have already recognised this and are increasingly turning to Africa for business partners and resource solutions.
Could Africa be a new (old) financial frontier? It’s only a matter of time: ABRIC?