CAPE TOWN (Reuters) - The International Finance Corporation (IFC) will almost double its African agribusiness investments to $400 million by 2011, one of its senior investment officers said on Tuesday.
The IFC is the investment arm of the World Bank.
“We have 7.1 percent of our portfolio in agribusiness in Africa and we are looking to increase it significantly,” Washington-based Anup Jagwani told Reuters on the sidelines of an African agribusiness conference in Cape Town. Read the full story
Being in the middle of an economical downturn is definitely not going to be a very easy situation for many people around the world. Nevertheless, it is a periodic occurrence, which is necessary to put things right in a world living too often beyond its means.
Eritrea has been on the track of self-reliance since the independence gained from Ethiopia in the beginning of the Nineties. In many fields, such as humanitarian aid, foreign investment exposure and transport infrastructre, it chose directions apart from the norm of other African countries.
Of course this is the harder way to go for a nation and often difficult to comprehend, because it requires sacrificing in first instance. Moreover, for many years Eritreans have lived far below their means for the sake of their nation and national identity. While others, which now have to come into terms with the bubble burst, used to know no limit.
Thus in times of recession individuals, corporates, national economies and the world tend to lay out their cards newly because it resembles a period of chance, thoughtfulness and self scrutiny.
This is also a chancel for Eritrea to enter into a new relationship in respect to international trade. Especially as a nation, which has a big tourism potential, is soon to enter into the mining industry and is opening its sea ports for free trade.
On the preparations for the upcoming Eritrean National Day on the 24th May 2009, the President of Eritrea has explained to Reuters News Agency, how the country is going to approach these challenges.
“The Norwegians would like to talk about 150 years from now. The Nigerians may want to exploit all their oil resources in 10 days or 10 hours or maybe 10 years, and that’s it, you’re finished. This is a resource of generations.” (President Isaias Afwerki of Eritrea on Reuters News Agency)
The President believes that economical stimulation has to be sustainable in order to fit a nations characteristic of infrastructure. Therefore, he suggests that instead of a tempting short term approach, Eritrea should seek for a more adequate pace to manage the exposure to a free market and a influx of foreign investment. This would be the only way how to best serve Eritrea’s interests for todays and the coming generations ahead.
Two companies from Abu Dhabi agreed to invest 2 billion in energy and real estate projects. The companies are Abu Dhabi National Energy Company (TAQA) and property investor Al Marbar International Investments. Read more: Khaleej Times.
The World Bank has published it’s “Doing Business 2009″ report on Eritrea. Since 2006 the World Bank is publishing a report every year on the conditions for starting up a business in 181 countries. In the 2009 World Bank analysis, Eritrea is rated based on 10 quantitative indicators, which measure the climate for opening a business in Eritrea in comparison to other economies.
The indicators are;
From the 10 indicators above the following outline is going to focus solely on starting a business and protecting investors. At the bottom of this article a summary of the “Ease of Doing Business” result for Eritrea will be given.
The business we are looking to start up is a limited liability company, which is comparable across economies, in the biggest city of Eritrea (Asmara). The company is 100% domestically owned, does not own real estate or is receiving special benefits and does employ between 10 to 50 employees. The start up capital is 10 times income per capita.
Reuters News Agency: According to Sudanese Officials agricultural investment by Arab countries in Sudan will make up to 50% of total investments by 2010. The Arabian Peninsula with countries such as Qatar, Oman, UAE, Saudi Arabia and others consists mainly out of infertile desert land and depends heavily on food imports. In contrast Sudan is a big country with heavy rain fall and a vast agricultural potential, which supplies livestock, wheat, animal feeds and oil seeds to the Gulf region. Agricultural investments from Arab states flowing into Sudan have grown from $700 million in 2007 to $3 billion in 2009, according to Sudanese officials. Read related article posted earlier “Technology Can Be Swapped for Africa’s Food” (capitaleritrea). Africa could see an increase of such investments in the future, which might lead some African governments to shift their priority from feeding their own population to feeding other nations. Read more: Reuters News Agency.
According to the Qatar News Agency, Sheikh Abdullah bin Zayed Al Nahyan met on Sunday with the President of Eritrea in Asmara, in order to discuss bilateral relations on investment, economy and trade. The UAE Foreign Minister is currently visiting several African countries in order to strengthen ties with the continent. Read more: QNA
