Investment

Report: Africa Delivers Largest Profits on Investment – VOA News

Published

5 years ago

February 5, 2020

LONDON – British companies have made bigger profits investing in Africa than in any other region of the world, according to a new report from the Overseas Development Institute (ODI), which urges firms to seek profits on the continent rather than seeing it as a place to do charitable work.

With 1.2 billion people and eight of the world’s 15 fastest-growing economies, the ODI says Africa offers world-beating returns on investment.

The report looks at investment by British firms in Ghana, Kenya, Nigeria and South Africa. Its authors say the “young population, growing middle class, and planned industrial growth make the continent a great place to do business.”

In 2019, the rate of return on all inward foreign direct investment in developing African countries was 6.5 percent, higher than the rates in developing Latin America and the Caribbean at 6.2 percent, and also higher than the 6 percent return in developed economies.

The report was published as Britain formally left the European Union on January 31. The government repeatedly has said its ambition is to create a “global Britain” with new trading partners beyond the European continent. As part of the effort to court new partners, London hosted the Britain-Africa Investment summit last week.

Proactive approach needed

Recent data from agency the International Trade Center show France and Germany export more than double the value of goods to Africa than Britain does. London must get proactive post-Brexit, according to Lourenço Sambo, director general of Mozambique’s Investment Promotion Center, who spoke to VOA on the sidelines of the summit.

FILE – Britain’s Prime Minister Boris Johnson, center, visits the Pavegen stand, a company that converts footsteps into energy, at the Innovation Zone during the UK Africa Investment Summit in London, Jan. 20, 2020.

“Nowadays, we very often say, ‘we are not just talking about Africa, we have to talk with Africa,’ Sambo said. “The UK [Britain] has to talk with Africa. If the UK just sits down, the vessel will go, that train will move.”

Nigerian entrepreneur Samuel Onwubu said the days when foreign companies could dictate terms to Africa are gone.

“UK companies need to come and work with the African business model,” he told VOA.

British companies believe they have an edge against their rivals in the field of technology. The UK Space Agency is backing satellite firms that offer services to African farmers, such as PRISE, or Pest Risk Information Service.

“It’s taking terabytes of satellite data and sending out text alerts to farmers, which can tell them when pests might become a problem in the future,” explained Chris Castelli, director of programs at the UK Space Agency.

Investment in Africa

African entrepreneurs are seeking investment in proprietary technology. Mobihealth is a mobile app that seeks to offer top-level health care access across Africa. Founder Funmi Adewara believes Britain’s expertise in finance could help.

“Ninety percent of our doctors are from Western countries, 10 percent from the rest of Africa,” Adewara said. “They provide video consultation, prescriptions, diagnostic tests. We are looking here to connect with people who can help us to scale up our business and take this global.”

The secretary-general of the United Nations Conference on Trade and Development, Mukhisa Kituyi, told VOA in a recent interview that African nations need to work harder to attract investment.

“We need to develop this human resource as a contribution to the world’s economy, we need to create the conditions to make Africa the next factory of the world. Then you can say, can Britain step in, just like any other friend of Africa, and offer some of the solution?”

Britain says it can offer solutions. Many analysts warn, however, that negotiations over its future relationship with Europe likely will dominate trade talks in the coming months and years.

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Investment

Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

Published

1 week ago

November 6, 2024

Anne Joseph

NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

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Investment

S&P/TSX composite up more than 100 points, U.S. stock markets mixed

Published

4 weeks ago

October 16, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX up more than 200 points, U.S. markets also higher

Published

1 month ago

October 11, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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