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Large quantities of resources: It begs the question..

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Africa is often falsely apprehended for one big homogeneous economy.

© Image copyright randa

Africa is the world’s second largest continent after Asia, and so would suggest large quantities of resources, no?  So what does 80,000 tonnes of, for example; iron ore actually mean for an economy within this beautiful continent?

And if Africa truly does hold precious, base and other metals at these large quantities, why isn’t the Continent moving forward?  Demand has yet to take off – But why?

Africa is SCARY!  It’s a scary place to put your money! Strikes turn to protests, protests turn into riots, and riots to killings, we all read the news.  But we have to get there first to catch that growth spurt, right?  So when is this ‘right time’?  Has it passed?  Is it now?  Is it yet to come?

Africa is also very often, falsely apprehended for one big homogeneous economy.  We cannot make this mistake from the investor’s corner.  Every country within Africa is separate from one another in how they operate, how they tax, how they regulate and how they grow.

We must respect Africa as individual economies that make up the continent, and accept the fact, as investors, that some countries may develop slower and lag behind; whilst others can still continue to plow upwards and forwards.

(This is an intro to mining sector.  Analysis is to be continued .. )

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