Money goes Africa, new Middle class buying $35k Homes
Post date: Jan 19, 2011 8:50:59 PM
Sub-Saharan Africa in 2010 growth 6%
No Sub-prime losses
Most of the African economies did not suffer
the Western Sub-prime crisis, simply they had
not the money to participate in the speculation.
Consumer Middle class
While western economies had to pay the loss,
Africa just continued to develop it's Middle class.
5% average growth enables population first time
to "consume" basic electronic products like TVs
Radios, Computers, Fridge and so on...
Internet fibre optics cables .."Youtube"
Cheap Internet connections to East and West
Africa created a knowledge explosion
enabling SMEs smal businesses to connect.
Home buyers
In principal the basic "Social Home" from $35.000
with no or interrupting Electricity distribution.
Same time luxury homes 3 - 6 bedrooms 2 floors
appear on the market. Many of them a result of
record Chinese "oil for loan" infrastructure
road and factory building.
What Africa needs next:
Green energy Mini Factories
Solar low CO2 low energy manufacturing final assembly
(Green manufacturing Expo: canontradeshows.com)
to stabilize Middle class growth creating
infependance of "Sweat shop" on/off factories.
Jobs jobs jobs for 800 million young Africans
under the age of 20 years.
Related:
Global economy at risk from surge of capital
to developing nations, warns World Bank
Heavy flows of speculative capital into developing countries as a significant risk to global economic recovery.
2011
Developing world takes 50% of 3.3% global growth
6% growth Developing world vs 2% high income
In its Global Economic Prospects 2011, the World Bank says growth of 6% in developing countries will be more than double the 2.4% in high-income countries.
U.S. low interest rates > Money goes Africa Brasil
Ultra-low interest rates in the west are leading to large capital flows into developing countries. Equity and bond flows to developing countries rose in 2010 by 42%
o East Asia topped growth table in 2010 with 9.3%
o Sub-Saharan Africa in 2010 stable growth 5.8%
o Latin America growth in 2010 up to 5.7%
source: guardian.co.uk