Lars Henriksson, writing for The New World, believes "Africa is the last ‘white spot’ on the global investment map. There’s plenty of growth to be found there". He sites World Bank figures that show economic growth in sub-Saharan Africa is set to outpace the global average over the next three years. But, says Henriksson, growth will not happen by itself. "With the eurozone focused on resolving their own problems, I believe it is Asian entrepreneurs like Robert Kuok and cash-rich corporations that will help to kick start Africa."
After decades of neglect from foreign investors, trade and investment have both picked up. GDP growth in the region is expected to reach 6.3% in fiscal year 2012-13.And agriculture is sure to play a big role. “Sugar is a basic food necessity besides rice and wheat, thus it is very important", said Mr.Kuok as news broke of of his Wilmar International Ltd acquiring a 27.5% stake in Cosumar, a large sugar Moroccan based manufacturer.
Growth Green Agriculture (GG Agriculture)
Wilmar will secure a strategic and strong presence in Africa with the potential to sell sugar to markets such as southern Europe and north and west Africa. Cosumar is the only sugar supplier in Morocco and the third largest sugar producer in Africa. It operates seven beet and cane sugar mills with a total capacity of 1.6 million tonnes and works with about 80,000 farmers to secure its feedstock.
The move offers a unique insight into how a leading private Asian investor perceives investment opportunities in Africa. Mr.Henriksson says "The new Wilmar African investment signals that Mr Kuok thinks that the continent is ‘investable’ as long as the price is right. I believe we will see plenty more Asia and Africa deals coming through over the next few years."
source: www.moneyweek.com
