Countries

Welcome to AFRICABIZ,

Welcome to Africabiz Online Synopsis RSS Feed edition. Previous issue available at this link

Dear faithful reader,

AFRICAN ENTREPRENEURS HAVE DIFFICULTIES TO PROVIDE COLLATERAL FOR REQUESTED LOANS

Funding sources always require from Borrower a good and secured collateral before signing any loan agreement. That is normal. They want to make sure that they shall recover their funds in case of loan-payment's default. Here are listed collateral most used on the international financial marketplace.

The problem of collateral - and particularly the most appreciated by financiers: the Bank Guarantee - is not easy to secure from the African commercial banking system. And most of the times development projects with high potential to making profit end up in limbo.

African entrepreneurs are obliged to rely only on their own meager financial resources to implementing their initial project or undertaking the expansion of an existing one. Even government sponsored-projects - necessary to establishing vital infrastructures: roads, railways system and so on - take years to reach the launching pad. For lack of funds.

This is a serious matter which needs to be properly addressed to finding solutions as African countries are desperate to implementing vital infrastructure and other industrial development projects to bridge the developing gap.

In order to quickly have access to much needed financial means, it is an absolute necessity for African entrepreneurs and governments to make use of the alternative offered by the international commercial banking system; as it operates with less red tape procedures and quick disbursement delays compared to the International Financing Organizations such as the International Monetary Fund - IMF - and The World Bank.

Till now the financing option and advantages of the international commercial financing system (speediness of decision and short disbursement period) have not been fully used by the African business community. For lack of sufficient expertise in the field. And also for lack of good documentation and preparation of the loan-request package.

It is obvious that a project which is structured to having the following parameters:

1- International and regional equity partners in addition to the national investors. 2- An international technical partner. 3- A marketing plan for local, regional and international markets. 4- Production's Purchasing Agreement with international purchasers.

Will be far more appealing to direct foreign investors and to the commercial financing banking system. And even more if related Feasibility Study / Business Plan are professionally drafted with a particular focus on generated cash-flow.

Once above conditions are met, borrower could either arrange for a Financial Guarantee; or combine insurance and reinsurance policies as collateral - particularly in case of the expansion of an existing operation.

Dr. Quenum and Associates are in the position to assist any African investor fulfilling the above mentioned parameters through a proven planning strategy.

Furthermore Dr. Quenum and Associates have working relationships with funding sources which may consider a collateral option based on insurance and reinsurance policies associated with a FINANCIAL INDEMNITY BOND - (FIB) and assist in finding financing / funds for viable project backed by comprehensive Feasibility / Business Plan.

Here is how the procedure goes:

1- Borrower should contact his Insurance Company and arrange for an Insurance Policy which satisfies the international wording / verbiage of lending Banks or Institutions. 2- Such Policy has more impact if backed by the Reinsurance Partner(s) in Europe / Asia and Americas of the Borrower's Insurance Company. 3- The Insurance Company should then issue a Financial Indemnity Bond - (FIB), thereby Guaranteeing Payment in full, any Lender to whom the Bond is presented by the Borrower. 4- Said Financial Indemnity Bond could be accepted as viable collateral by Dr. Quenum & Associates / Financing Partners if the Insurer(s) are rated 'AA+' or 'AAA'. 5- If the Insurance Company is not rated 'AA' or 'AAA' but is affiliated to a 'AA+' or 'AAA' rated Re-insurer Partner, then Dr. Quenum & Associates and Financing Partners will accept the Re-insurance Company Binder of the Insurance Company's [F.I.B.] - Subject to mutual modification, if necessary, of the FIB wording / verbiage.

For Frequently Asked Questions on Bond and Indemnity Bond click here

With said combination of insurance and reinsurance policies / FIB - and adequately drafted Feasibility Study and Business Plan - an existing company is in the position to negotiate and secure large amount of funds - in the range of hundred to billions of US $ - for the expansion of its operation.

Click here to read more about procedures to using collateral based on Insurance / Reinsurance policies for loan request.

- In addition to the efforts now made to promoting Nepad, national African governments should also devise and promote projects oriented development schemes; establishing integrated operations which link together agriculture development, industrial transformation of crops and expansion of related services. These projects oriented integrated schemes will be more attractive to direct foreign investors and to the international commercial banking system.

Click here to review how Dr. Quenum & Associates may assist you in financing research.

IS PEACE A POSSIBILITY NOW IN ANGOLA?

The news was sudden as always when it is related to an important event.

Jonas Savimbi, the charismatic, strategist and ruthless leader of the Union For The Total Independence Of Angola - UNITA - died on battlefield on February 22, 2002.

He fought for nearly four decades first against the colonial power, Portugal, and second against the rival party / power of Luanda - the MPLA.

He fought for nearly four decades first against the colonial power, Portugal, and second against the rival party / power of Luanda - the MPLA.

He who had for years escaped all the traps laid down on his path by enemies had failed to analyze the geo-strategic impact of September 11, 2001. He had failed to accordingly adjust his political and survival strategy to the new "reality". He had not understood that freedom fighters are no more acclaimed and supported as such by the international community. They are now branded terrorists.

So Savimbi is dead. An hero for his followers. A bandit for his enemies. Doubtless a man of conviction who relentlessly carried out his political project - year upon year and over decades. (Click here for some opinions expressed in Africa about the event. In case the webpage is no more available you may search California New Media - cnmonline.com - for an article titled: "Africa Speaks on Savimbi's Death". By Donal Brown, March 6, 2002)

Now what? Is peace around the corner for war-torn and impoverished Angola? Is this country endowed with huge mineral resources - diamonds, oil and so on - and plenty of arable land (suitable for the establishment of a strong agribusiness) going to enter a sustained development process? Let's hope for the better.

In an analysis / article released in BBC Online on February 25, 2002 Justin Pearce wrote: "...Without the alibi of a war budget, Luanda will be under pressure at home and abroad to ensure that a decent proportion of the country's oil earnings goes towards improving the lives of Angolans..."

If such is the case, in the near future, the death of Savimbi will help Africa. Angola could become one of the driving force for the African Renaissance as here extensively exposed.

"CONTRIBUTOR'S GUIDELINES" are available here. You are invited to contribute to AFRICABIZ ONLINE MONTHLY ISSUE - with articles related to "How Africa Could Bridge The Developing Gap".

Many thanks for subscribing to Africabiz. See you here next month on April 15, 2002.

Dr. B.M. Quenum
Click here for support console

Business Opportunities

TROPICAL FRUIT INDUSTRY AS INCOME BUILDING POWER FOR AFRICAN COMMUNITIES / PART II : PASSIONFRUIT AGRIBUSINESS DEVELOPMENT

Passiflora Edulis - commonly known as Passionfruit - is a fruit which gives a powerful tasting and appealing flavored juice (One drop of highly concentrated passionfruit juice is enough to flavoring 12 liters - three gallons - of pure water to a sweet beverage). The image below features the Yellow species of Passiflora Edulis. Courtesy of Purdue University.

For that astounding flavoring power the passionfruit juice is used to blending other fruit juices (orange, guava, pineapple and so on). The industry of ice-creams and candies also makes large use of the passionfruit juice and its byproducts.

Main producers are: South Africa, Australia, Brazil, Colombia, Fiji, Taiwan, Guyana, Hawaii, Japan, Kenya, Peru and Sri-Lanka.

One can notice that only two sub-Saharan African countries are listed as main producers. Other minor sub-Saharan African producers are: Cameroon, Cote d'Ivoire / Ivory Coast.

The demand for passionfruit juice on the marketplace being higher than the offer, there is an opportunity for any African country to entering the very lucrative worldwide tropical fruit juice's industry through the development of Passionfruit's plantations and processing units.

For instance, a plantation of 500 hectares of passionfruit will necessitate investments in the range of US $ 2,090,000 to producing 7,500 metric tons of passionfruit. For a revenue of US$ 585,000 per year which fully covers operational expenses in the range of US $ 450,000. For more on the matter click here.

-This is a real niche opportunity for any African country to improving its foreign exchange balance. It is also a perfect Economic Catalyst

Control Your Desktop

JUNK MAILS, SPAMS AND SCAMS ARE FLOODING YOUR MAIL SYSTEM? TAKE CONTROL OF YOUR INBOX

Are you getting embarrassing porn emails messages in your Inbox? Incredible mortgage offers? Proposal to acquire doctorate degree on the fly? Money laundering proposals and so on?

You have the possibility to put a stop to that invasion of your privacy. Do not let spammers and scammers have their way. Beat them with these software packages which filter junk mails and give you back full control of your mail system:

1- SpamKiller. For a mere US $ 29.95 you have a complete peace of mind and won't be embarrassed anymore with outrageous porn propaganda.

2- Email Remover. A free piece of software which allows you to view headers of your mails; delete those you do not want in your Inbox.

Freebie Of The Month

MAKE USE OF A FREE PC CASH REGISTER

Here is a PC and web application which seats on your desktop to perform the following:

- A Cash Register - A Barcode Reader - An Inventory Tracker - A Customer Tracker Reports & Exports - Touch Screen Compatible. - Networkability - Data may be import and export to almost all Windows Based productivity programs.

PC Cash Register (Light Edition) is free. It offers all the functionality of the FULL VERSION without the sale database, networkability and security. FULL VERSION costs US $ 109,99 and support three clients / PC. There is also a SERVER VERSION to service a biggest client database.

Click here to get the Light Edition of PC Cash Register.