If your wealth portfolio of assets from developed nations is not performing, as you would like, you might consider Africa. Developed country ZIRP and negative interest rates can spur investment, but be tough on profitability. Many of these European countries have very low growth rates, some are even negative. Wealth adviser Igor Cornelsen can help you decide if Africa, is a safe place for investment.
“High Growth Rates”
Before venturing into Africa, you need a sanguine assessment of the advantages and disadvantages of the continent. Professional adviser Igor Cornelsen explains that Africa has many advantages, including a growing population, untapped resources and being in the same time zone as Europe. When you find a profitable African asset, you can enjoy higher profits due to the higher interest rates. Learn more about Igor Cornelsen’s methods at ireport.cnn
The disadvantage with respect to interest rates, is that local African entrepreneurs must also pay these higher rates. This makes it difficult for entrepreneurs to qualify for loans. Mr. Cornelsen gives the example of Ghana banks, charging 28% interest rates. Many Europeans and even Japanese firms are looking at 0% interest rates (or even negative).
“More Startup Incubators Needed”
Branding is one of the key deficiencies of the African continent. Can you name a top brand from Africa? Perhaps, “M-Pesa” could be the first real global brand from Africa.
With a global brand, the world would take notice. African firms could “piggy back” upon the firm, just like they did during the World Cup in South Africa.
Certain African countries have a better foundation for legal and financial considerations. Ghana, Nigeria, South Africa and Kenya remain some of the most developed countries on the continent. Investment adviser Igor Cornelsen can help you with proper valuations.
Each nation has its own rules and regulations. While some of the African stock exchanges remain less developed, gradually a solid middle class is growing. This can help further build up the capital resources, needed as incubators for future startups. Africa offers high risk and high reward. Once it learns how to support startup growth, the sky is the limit.