Daily Archives: August 8, 2012

Renaissance Asset Managers’ Sven Richter likes Kenya, Nigeria, Zimbabwe

From ABN’s power lunch, July 27. Specifically, Richter likes Kenya for its banks, consumer goods and its status as a hub in the best integrated region in East Africa, Nigeria for its telecom potential and Zimbabwe for its progress with political sanctions from the EU. Also, direct investment in Africa makes more sense than proxy investment through companies headquartered in developed countries that claim activity in Africa. The full video is eight minutes and overall a pretty good summary of the general macro outlook in African markets. Original link here.

How political risk translates into Ghana’s foreign direct investment prospects

Renaissance Capital’s Yvonne Mhango breaks down possible paths for the future of Ghana’s political leadership and what each means for the country’s FDI prospects:

On the whole, the ruling NDC is considered to be a social democrat government that is more likely to retain subsidies (such as on fuel), refrain from privatisation and raise taxes, as it did earlier this year on the mining companies. There is a low risk of the legislation and tax regime for energy and mining being changed because the party more likely to do so, the NDC, has already done it; and the business-friendly NPP would be unlikely to do so. The NDC government has already increased the tax burden on mining companies by 10 percentage points to 35 per cent and imposed a 10 per cent windfall profit tax on all mining companies.
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Emerging & Frontier Markets Headlines 2012.08.08

If you’re sick of BRICs and uninspired by CIVETS, behold – MIST nations are beating BRICs! — Bloomberg

If you’re sick of BRICs, uninspired by CIVETS and unimpressed with MIST, how about the CASSH countries (this is not a joke): Canada, Australia, Switzerland, Singapore and Hong Kong — iShares Blog

Russia’s preparing to buck the trend by raising interest rates. Get ready for me to tell you I told you so. — Reuters
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