african discount, page-11

Of course risk varies between African countries. But similarities also exist across many, such as the experience of colonisation, low per capita GDP, varying degrees of one-party dominance, etc. Yes I agree Moz has demonstrated social and political stability of late and a determination to make itself attractive to capital. It was interesting to see that KPMG put Moz on a par with Morocco in terms of sovereign risk.

Which Australian Copper producer was suddenly hit with a major tax impost a few years ago somewhere in Central Africa - I think DRC or Zaire? Now I know Moz has better reputation, but it seems an immuutable law of nature that just as low pressure systems draw from high, impoverished social systems, when they can, do their best to draw from wealthier. Just hope that Moz does this in the optimal way.