Author: paddylo

Nigeria accounts for 60% of Ghana’s foreign investment, GIPC

Nigerian businesses account for about 60 percent of foreign investment in Ghana, aided by the enabling investment climate of the West African country.

Director, Marketing and Public Relations, Ghana Investment Promotion Centre (GIPC), Mr. Edward Ashong-Lartey, stated this last week, in Lagos, at a forum to announce the forthcoming 2010 International Business Events Management (IBEM) conference billed for Ghana in March.

GIPC is a one-stop government agency, in the office of the Ghanaian Presidency, that facilitates and supports local and foreign investors in both the manufacturing and services sectors of Ghana.

According to him, the level of Nigerian investment in Ghana is very high, especially with the entrance of communications giant, Globacom, along with some other companies, into the country, adding that the Ghanaian officials to discuss possible areas of further collaboration with Nigerian investors and the kind of incentives that will promote investment and business relations between both countries, ahead of the IBEM conference. Ashong-Lartey noted that the forthcoming event with the theme: “Investing and Growing Your Business in Ghana – Challenges and Opportunities”, is aimed at enabling investors both in Africa and other continents to harness the business opportunities that are abound in Ghana, adding that the interest on Nigeria is borne out of the fact that she has the experience in manpower and technical capacity that are believed would be relevant to Ghana to develop its nascent sectors, especially oil and gas. “Talk about the population, the land mass, abundant natural resources, technocrats and so on. Already, Nigeria is seriously playing active role in Ghana’s economy,” he stated.

He said that GIPC sees investment opportunities for Nigerians in agriculture and agro-processing; fish processing; sports, Leisure and Infrastructure; transport; infrastructure, power and tele-communications, among others.

“Government would harness the opportunity that abound in the discovery of and exploration of oil in the country to woo and encourage would-be investors. All expectations of investors are assured and would not be dashed,” he stated. The Ghanaian government official, however, acknowledged that the country was currently experiencing some challenges in the areas of security, high interest rates, bank charges and inadequate power generation (at 1,850-mega watts) that may discourage investors, but noted that the government was working seriously on ways to address the issues. He said, for instance, that about six foreign companies have indicated interest to use gas to produce energy with the hope of boosting the power supply before the end of 2010, adding that tax holidays were being considered for some sectors and tourists just to create conducive environment for investors in the country.

Targets participants for the forthcoming conference, according to Ashong-Lartey, include manufacturers in Europe, America, UK, Asia and Africa; local and foreign investors, chambers of commerce and industry, regional and multinational corporate bodies, oil and gas companies, banks and financial institutions.

http://mobile.ghanaweb.com/wap/article.php?ID=175510

20. United States
External debt (as % of GDP): 94.3%
External debt per capita: $43,793

Gross external debt: $13.454 trillion (2009 Q2)
2008 GDP (est): $14.26 trillion

19. Hungary
External debt (as % of GDP): 105.7%
External debt per capita: $20,990

Gross external debt: $207.92 billion (2009 Q1)
2008 GDP (est): $196.6 billion

18. Australia
External debt (as % of GDP): 111.3%
External debt per capita: $41,916

Gross external debt: $891.26 billion (2009 Q2)
2008 GDP (est): $800.2 billion

17. Italy
External debt (as % of GDP): 126.7%
External debt per capita: $39,741

Gross external debt: $2.310 trillion (2009 Q1)
2008 GDP (est): $ 1.823 trillion

16. Greece
External debt (as % of GDP): 161.1%
External debt per capita: $51,483

Gross external debt: $552.8 billion (2009 Q2)
2008 GDP (est): $343 billion

15. Spain
External debt (as % of GDP): 171.7%
External debt per capita: $59,457

Gross external debt: $2.409 trillion (2009 Q2)
2008 GDP (est): $1.403 trillion

14. Germany
External debt (as % of GDP): 178.5%
External debt per capita: $63,263

Gross external debt: $5.208 trillion (2009 Q2)
2008 GDP (est): $2.918 trillion

13. Finland – 188.5%
External debt (as % of GDP): 188.5%
External debt per capita: $69,491

Gross external debt: $364.85 billion (2009 Q2)
2008 GDP (est): $193.5 billion

12. Sweden – 194.3%
External debt (as % of GDP): 194.3%
External debt per capita: $73,854

Gross external debt: $669.1 billion (2009 Q2)
2008 GDP (est): $344.3 billion

11. Norway – 199%
External debt (as % of GDP): 199%
External debt per capita: $117,604

Gross external debt: $548.1 billion (2009 Q2)
2008 GDP (est): $275.4 billion

10. Hong Kong – 205.8%
External debt (as % of GDP): 205.8%
External debt per capita: $89,457

Gross external debt: $631.13 billion (2009 Q2)
2008 GDP (est): $306.6 billion

9. Portugal – 214.4%
External debt (as % of GDP): 214.4%
External debt per capita: $47,348

Gross external debt: $507 billion (2009 Q2)
2008 GDP (est): $236.5 billion

8. France – 236%
External debt (as % of GDP): 236%
External debt per capita: $78,387

Gross external debt: $5.021 trillion (2009 Q2)
2008 GDP (est): $2.128 trillion

7. Austria – 252.6%
External debt (as % of GDP): 252.6%
External debt per capita: $101,387

Gross external debt: $832.42 billion (2009 Q2)
2008 GDP (est): $329.5 billion

6. Denmark
External debt (as % of GDP): 298.3%
External debt per capita: $110,422

Gross external debt: $607.38 billion (2009 Q2)
2008 GDP (est): $203.6 billion

5. Belgium – 320.2%
External debt (as % of GDP): 320.2%
External debt per capita: $119,681

Gross external debt: $1.246 trillion (2009 Q1)
2008 GDP (est): $389 billion

4. Netherlands – 365%
External debt (as % of GDP): 365%
External debt per capita: $146,703

Gross external debt: $2.452 trillion (2009 Q2)
2008 GDP (est): $672 billion

3. United Kingdom – 408.3%
External debt (as % of GDP): 408.3%
External debt per capita: $148,702

Gross external debt: $9.087 trillion (2009 Q2)
2008 GDP (est): $2.226 trillion

2. Switzerland – 422.7%
External debt (as % of GDP): 422.7%
External debt per capita: $176,045

Gross external debt: $1.338 trillion (2009 Q2)
2008 GDP (est): $316.7 billion

1. Ireland – 1,267%
External debt (as % of GDP): 1,267%
External debt per capita: $567,805

Gross external debt: $2.386 trillion (2009 Q2)
2008 GDP (est): $188.4 billion

SOURCE. .http://www.cnbc.com/id/30308959?slide=21

Billionaire Investor Grows Deeply Concerned About China
Published: Friday, 8 Jan 2010 | 6:08 PM ET Text Size
By: Lee Brodie
Producer

A widely followed billionaire investor is raising serious concerns about China and it appears more people are taking notice.

In Friday’s New York Times the paper reiterated something billionaire hedge fund manager Jim Chanos first told the Fast Money desk, on the December 15th Halftime Report – that China has the potential to be as much of a watershed event for world markets as subprime was a few years back.

A celebrated short-seller, Chanos isn’t the first person to turn bearish on China, but his commentary is widely followed because he has a knack for spotting looming problems, including Enron, Tyco, and the housing crisis.

And speaking of housing, Chanos thinks China’s troubles will stem from a real estate crisis – much like our own troubles did.

”(China) is a surging real estate sector buoyed by a flood of speculative capital,” he says. “It looks like Dubai times 1,000 — or worse!”

And to make matters that much more ominous, he feels Americans are investing in China without really grasping how the government works.

“We just don’t believe the GDP numbers. We think they’re massively inflated by under-depreciating a very shaky capital-asset base.”

All these elements have the trappings of a bubble, Chanos says, and one which may soon burst. If and when that happens, Chanos expects companies will fail. As a result he’s actively shorting China.

"I’m looking for plays on the China investment boom, which we think will burst at some point,” he said in the middle of December. “Demand in China is over-inflated, that is clear."

http://www.cnbc.com/id/34767468

It has dawned on me after several months of trying to figure out what was missing in the west
there was something missing i couldnt put my head around. .it didnt matter if i was in vegas,miami,new york,DC or philadelphia. . .something was just not quite right
i checked out as many cities as i could. . .u stay in a hotel somewhere downtown,check out the clubs. . .and it was always the same thing. . apart from the cities i mention above i have also clubbed in tampa florida,st loius,baltimore,upstate newyork and boston. . .
i been in city/college towns in the city or sub urbs. . .
i have ridden trains from the airport to the city centre in a lot of towns like st louis. . checked out the bars in daytime or night

but there is no soul amongst the people, they are all like drones or zombies who dance to whatever music they say is cool. . .and sleep with u without even knowing why
no culture. . .just this humongous stretch of paved roads and strip malls. . .

it was slightly better in AA communities i hung in,been to a couple of block parties,with streets blocked off and kids(15yr olds) doing dance offs. . .
all black faces except one or two white starbucks type hanging around like tourists. . .

however once the party ends everyone goes back to the i dont trust strangers mode,ppl are more tense. . .two days later i hear there was a shooting at the chicken spot 2 blocks from where i attended the block party

In Nigeria and perhaps much of africa. . .a lot of the ppl u see might be poor,but they are genuinely happy. . .u have open air bars,that line streets where ppl chat and laugh till daybreak. . .
u can get into a bus and laugh all through cause something is always happening. . .
whether it is the okadaman or gateman,househelp or oga bigman. . .there is always something to smile about. . .
am sorry folks but i believe these ppl are richer in the end. . .apart from the fact that u cant take any of all these when u die,
but they also have something money cannot buy. . .could be the culture,maybe a spiritual calm,whatever it is i cant find it in the west. . .
i have given up trying to make friends with folks here that are not african or carribean. .in nigeria your friend can call u anytime,and u all know where u live
over here its the opposite. . .

so all am saying is,as we wish for skyscrappers and strip malls for africa. .
we should be weary of loosing the only thing that can truley make us rich and fulfilled on this earth

proudly nigerian

Published Dec 7, 2009
It is now more than eight years since we at Goldman Sachs first wrote about the BRIC concept—the idea that the emerging markets of Brazil, Russia, India, and China would come to play a new and more muscular role in the global economy. Throughout the period leading up to the collapse of Lehman Brothers, we often felt that the durability of the BRIC concept needed to be tested through an economic shock.

It is one thing to have strong growth when everything elsewhere seemed fine, but strength can only really be proven through less favorable external conditions. The recent turmoil certainly qualified as that, and the BRIC economies survived it well. Indeed, these days we think that the combined GDP of the BRICs might exceed that of the G7 countries by 2027, about 10 years earlier than we initially believed. So why has this crisis been good for the BRICs?

For China, it has forced changes in the country’s previous, unsustainable export model. The decline in U.S. and European spending convinced Chinese policymakers that they must quickly stimulate domestic demand if they are to have any chance of maintaining their goal of annual GDP growth at 8 percent or higher. Already it looks like Beijing’s swift and savvy stimulus plan is working. China will likely overtake Japan as the No. 2 economy in the world by the end of 2009. We estimate that within 17 years, China will also overtake the U.S.

Brazil also had a good crisis. Despite a commodity-price collapse, Brazilian policymakers didn’t panic, and the stability culture fostered by President Luiz Inácio Lula da Silva since 2001 has survived. Low inflation is a new reality, and the investment climate is strong. Assuming a smooth transition to post-Lula leadership, Brazil can continue to enjoy an estimated 5 percent annual growth.

India, too, has weathered the worst of the crisis well. Who would have thought that the world’s largest democracy would be likely to grow by 6 percent or more in the same year that the U.S. and U.K., historically India’s two most important trade and investment partners, experienced their worst declines in decades? Since Prime Minister Manmohan Singh’s big victory in May’s elections, the prospect of fresh policy reforms has grown more likely. If India can boost its infrastructure and both improve and speed up its policymaking, it might unleash the spending power of its own billion-plus populace and see Chinese-style growth rates for the next decade.

The big caveat in the BRIC success story is Russia. The collapse of the world economy and the speedy drop in oil prices exposed not only Russia’s commodity dependence but also the fact that too much money and power there has been concentrated in the hands of too few. To remain in the high-growth category long term, Russia must arrest its population decline, improve the rule of law to encourage business, and boost efficiency in nearly every aspect of its economy.

What about the other large emerging-market countries? We have identified a promising group known as the N11, or the "Next 11," many of which have emerged from the crisis in better shape than predicted. In Asia, populous Indonesia is perhaps the most exciting of these countries, and some people are suggesting it might even become as big as one of the BRICs. While I doubt that, it does look as though it might be on track for sustained growth in domestic demand. It will take a few years to see whether recent signs of optimism about stronger governance will persist, but the prospects seem quite encouraging.
Mexico, Nigeria, and Turkey also show great promise. Turkey is especially intriguing, given its young and vibrant population and its unique position as a bridge between East and West. As for Mexico, I occasionally think it should have been included in the original BRIC list, as it has such a big population. But Mexico hasn’t done much to improve its productivity performance and dependency on oil revenues, in part because it sits on the U.S. border—it’s too easy to grow by satisfying the low-end manufacturing and energy needs of its large neighbor. Commodity-rich Nigeria could also be a lot more exciting if it got its economic act together—it is Africa’s most-populous nation, with a potential market around four times the size of South Africa’s.

What is the world going to look like as it adjusts to these emerging powers? The first and probably most important thing to say is that there are likely to be all sorts of unpredictable political and economic developments associated with their rise. This makes the advent of the G20 all the more important as a venue for reducing conflicts.

Already, the rise of the emerging markets has raised big new questions and risks. For example, since the end of World War II, the world’s largest economies have been liberal democracies. While China will presumably evolve into a freer political system over time, it is by no means certain that it will become true Western-style democracy. How will the U.S. and Europe accommodate themselves to Beijing as a global partner?

And will the BRICs themselves get along? China and India, for example, have fought wars along their long and mountainous border before. Could there be future conflicts between these two rising giants? And what kind of impact would these have on the global economy?

This leads me back to the economic and financial paradigms of the new world. It is widely presumed that it is merely a matter of time until China will allow its currency to float freely and dismantle all its capital controls. I have assumed this myself for many years. After a recent trip to the Far East, however, I found myself wondering whether this is actually as inevitable as many of us presume. The existence of capital controls in different forms has helped countries like China and India weather this crisis. Policymakers in both countries are pleased that they didn’t accept expert Western advice to dismantle controls any faster than they did.

Now, fast-forward to 2020. At that point China will probably represent around 15 percent of global GDP, andIndia somewhere between 5 and 10 percent, which would put both countries close to both the U.S. and Europe in economic size. This new heft could put them in a position to suggest something quite alien to many Western policymakers today—that they should consider a more heterogeneous global financial system.

One of the most intriguing policy statements I have read in many years came from People’s Bank of China governor Zhou Xiaochuan back before the April 2009 G20 meeting. His suggestion that the world use IMF-backed "special drawing rights" rather than the dollar as a reserve currency has had my mind in overdrive ever since. What if we were to move to a more managed currency system in which the dollar, euro, yuan, and others, possibly the yen, were managed against each other? It used to happen with gold. Maybe it might work in this new and different guise. A new multipolar global currency system would allow more diverse patterns of global trade and investment to emerge and help mitigate the global imbalances in saving and spending that have grown out of our dependency on the dollar. The result could be a wealthier, and economically healthier, planet.

O’Neill is the chief economist at Goldman Sachs.
http://www.newsweek.com/id/225625?ut…+World+News%29