As Western economies start to regress in earnest following decades of failed and destructive monetary inflation and debt accumulation, as we warned previously, yield-starved investors are allocating real capital to the one industrially untapped continent in the world: Africa. However, we’re not seeing industry moving to Africa to set up shop. Rather, politically-directed capital flowing into the African resources sector is fueling and financing the strongest consumer boom in the world. It’s a vendor financing model for Asia, and it portends a major boom and bust cycle for the African continental economy.
And as the fight begins to accelerate, as Mike Krieger notes, nations will increase their efforts...
Submitted by Mike Krieger of Liberty Blitzkrieg blog,
China’s ongoing colonization of Africa represents yet another sad development in the continent’s tragic history. I briefly highlighted this topic once before in December 2012, via a “Guest Post” I suggest reading titled: Africa in the Crosshairs.
Unfortunately, Erik Prince of Blackwater infamy is now coming to town, which can only mean more pain, suffering and servitude for Africa.
From the South China Morning Post:
Shares of DVN Holdings, controlled by Hong Kong businessman Johnson Ko Chun-shun and state-owned Citic Group, surged 7.3 per cent after it appointed Erik Prince – former owner of controversial US security firm Blackwater – as chairman, and granted him more share options.
This is in addition to five-year options granted to him that allowed him to buy 205.1 million shares at 73 HK cents each in late November, as part-payment for a start-up East African aviation and logistics firm injected by Prince into DVN. The two options mean he could own about 23 per cent of DVN.
Prince last November sold to DVN a company that plans to build a pan-Africa provider of aviation, logistics, risk management, security services and exploration support services, needed by many Chinese businesses active in Africa. He received US$3 million plus the first batch of options.
Prince has logistics, aviation, manufacturing, resources and energy business interests in Africa, the Middle East and North America, and is the founder of Frontier Resource Group, a private equity firm active in African aviation, exploration, mining and logistics, DVN said.
He was also the founder of Blackwater, which he sold in 2010 and was renamed Xe Services and then Academi, after four years of federal investigation into allegations of sanctions violations, illegal exports and bribery against the firm and its staff. Blackwater was a security services firm that protected US officials in Iraq and Afghanistan.
The firm subsequently paid US$42 million in fines for hundreds of violations of US export rules, to avoid criminal charges, The New York Times reported.
Just like with the banks, Prince gets to pay a fine and walk free. Get the joke yet?
Full article here.