One cannot characterize the whole of Africa in the manner you have. Africa must be looked at in regions - North, South, East and West.
Lets look at country risk ratings and ease of doing business ratings for 2011 for African nations vs Ukraine.
CR is country risk with A1 being lowest and D being highest (I gave Somalia a F because it doesn't even get a ranking)
BR is the Ease of doing Business Ranking for 2011. It is out of the 183 countries open to foreign investment. Each Country is ranked. 1 has the greatest ease of doing business while 183 is basically impossible.
South: Botswana: CR- A3 and BR- 52/183 Namibia: CR- A3 and BR- 69/183 South Africa: CR- A3 and BR- 34/183 Zimbabwe: CR- D and BR- 157/183
East: Kenya: CR- C and BR- 98/183 Mozabique: CR- B and BR- 126/183 Tanzania: CR- B and BR- 128/183 Uganda: CR- C and 122/183 Somalia: CR- F and 183/183
West: Angola: CR- C and BR - 163/183 Nigeria: CR- D and BR- 137/183 DRC: CR- D and BR- 175/183 Ghana: CR- C and BR- 67/183 Gabon: CR- B and BR- 156/183
You get the picture. Now lets look at Ukraine.
Ukraine: CR- D and BR- 145/183
Ukraine is amongst the most corrupt African nations in terms of country risk and ease of doing business. East and South African nations (bar one or 2) are great investment destinations. Many East African nations are using bodies like the IMF as well as countries like the US and Australia to assist in managing the wealth from their resources. Kenya have openly stated they do not want to end up like Nigeria should they find oil later this year.
I am from South Africa and countries like Botswana and Namibia are fabulous places with low crime rates and growing economies. Botswana has had the same ruling party for many years and used the wealth provided to them from De Beers and their diamonds to build a wonderful country.
You cannot paint each one with the same brush. Furthermore the factionalism is internal and on a country by country basis.
No one cares where you think the countries or country is heading, this is the ratings based on reputable companies and individuals. The sovereign RISK is HIGH.
HOG Price at posting:
29.5¢ Sentiment: None Disclosure: Held
