The last few days have brought about catastrophic declines to stock markets across the world and what began as a problem for the United States has spread to the United Kingdom, France, Germany, Japan and other parts of the world.
What started as the collapse of financial institutions which once stood as pillars of capitalism in the United States has now spread globally and scary enough has even brought about talk of a country going "bankrupt."
We look back at our lives when we are old and grey and there are moments that remain cemented in our memories. You may know what I'm talking about, for instance when we're speaking to our parents or grand parents and they mention the phrase " I remember back in 2008 when.... .... ....." This time right now is one of those moments which will remain cemented in minds for years and many decades to come.
What we once read about in history books is now playing out before our eyes and the scary thing about it is that you, me, family, friends and loved ones are/will/ can be severely affected by what is taking place. Houses will be lost along with jobs and personal and retirement savings will be seen slowly evaporating or worse yet gone.
Luckily I am fortunate enough to have not been seriously affected by what is taking place. With no considerable amount of money in a 401(k), I have yet to ever delve into the market (Thank God for that.) I feel bad for the people close to retirement who have built up considerable nest eggs only to see them deflated overnight.
With all this going on the question which remains in my head is what this means for the developing countries of Africa. The so-called BRIC's, Brazil, Russia, India and China's markets have all been affected by the sell-off frenzy, but the emerging countries of Africa (bar Kenya) whom they've yet to come up with an acronym for day awaits them.
My stock holdings in Uganda have fought vigilantly these past couple of weeks with Uganda Clays Ltd. remaining flat at 190 ugx and Bank of Baroda Uganda pausing slightly at 1,100 range after astronomical gains since the stock split.
What this Financial crises means for Africa I believe is the reduction in the amount of inflows in regards to aid, reduction in remittances from people abroad and possibly a pause in the amounts of investments that were pouring into the continent. People will wait on the sideline to guage how connected Africa's economies are to the rest of the world and once investors can see what the situation is and the credit market unfreezes, people will begin investing once again trying to re-fill their nests.
Having worked in the mortgage industry for a year 2006 - 2007 (towards the tail end of the frenzy) I wonder what peoples experiences have been during this trying time? If you or someone you know has been directly affected by this Financial crisis please feel free to document your experience.
Friday, 10 October 2008
Monday, 15 September 2008
Am I dreaming?
The last 24 hours have been crazy to say the least and the worst may still not have occurred. These actions have affected not only the U.S., U.K and the rest of developed countries and markets but you got it ladies & gentleman the entire globe. This day will go down in history as a day to remember.
Not so long ago I remember news footage of people cueing outside of their banks hurrying to withdraw their savings before their institution failed (a.k.a. Northern Rock.)
In the last few hours before I lay my head on my pillow, even stranger images of BBC news footage flash before my eyes. I imagine these scenarios playing out before me as if I could not hear, read lips and all I can do is see. This is what passes before my eyes…
I see businessmen and businesswomen in large cities flowing out of their office blocks with their belongings in hand looking as if they are vacating the premises. The cities look like places that I’ve visited before namely New York City and London. I see a look of helplessness on the faces of people giving interviews and a sense of despair. Now the picture changes to other news footage across the globe. I see two men in suits that seem to be important figures probably of African countries smiling and shaking hands with one another in what seems to be some agreement of sorts. Is this really happening?
The last 24 hours have witnessed one of the worst performing days of the NYSE in the last 7 years, Lehman Bros an institution with over 150 years old filing bankruptcy, Merrill Lynch being sold and the world’s biggest insurer being thrown an $11 billion dollar lifeline. Oh yeah before I forget to mention it also witnesses Robert Mugabe and Morgan Tsvangirai shaking hands signalling a peace sharing agreement. I wonder to myself what is going on, and then Robert Mugabe makes things normal again and makes it a point of slamming and slandering the West. Some things never change.
Not so long ago I remember news footage of people cueing outside of their banks hurrying to withdraw their savings before their institution failed (a.k.a. Northern Rock.)
In the last few hours before I lay my head on my pillow, even stranger images of BBC news footage flash before my eyes. I imagine these scenarios playing out before me as if I could not hear, read lips and all I can do is see. This is what passes before my eyes…
I see businessmen and businesswomen in large cities flowing out of their office blocks with their belongings in hand looking as if they are vacating the premises. The cities look like places that I’ve visited before namely New York City and London. I see a look of helplessness on the faces of people giving interviews and a sense of despair. Now the picture changes to other news footage across the globe. I see two men in suits that seem to be important figures probably of African countries smiling and shaking hands with one another in what seems to be some agreement of sorts. Is this really happening?
The last 24 hours have witnessed one of the worst performing days of the NYSE in the last 7 years, Lehman Bros an institution with over 150 years old filing bankruptcy, Merrill Lynch being sold and the world’s biggest insurer being thrown an $11 billion dollar lifeline. Oh yeah before I forget to mention it also witnesses Robert Mugabe and Morgan Tsvangirai shaking hands signalling a peace sharing agreement. I wonder to myself what is going on, and then Robert Mugabe makes things normal again and makes it a point of slamming and slandering the West. Some things never change.
Saturday, 13 September 2008
Tourism Key in Driving Development
Travelling to foreign countries at a young age I contracted the travel bug quite early. Looking back at all those fond memories and continuing to travel as an adult I’ve been able to recognize the importance that tourism can play in creating economic opportunities not only in developed countries of the western world, but also in developing countries.
I believe that there is an untapped opportunity yet to be exploited in Africa all over the continent. As travellers continue to look for the next emerging hotspot just like investors do, it seems the majority are getting closer and closer to Africa.
I have non-African friends who have recently visited Tanzania (I haven’t even been there yet) Kenya, Namibia, Cape Verde, South Africa, Morocco and the list continues to grow. It seems the negative connotations associated with Africa are beginning to wane and to be honest there is so much diversity to be seen on the continent that you cannot find elsewhere.
I recently made a trip to Thailand and from the moment that you arrive at the airport to the moment that you leave, you understand the importance of tourism to the country and the countries GDP (I believe it is around 10% and growing.) Now I’m not speaking of sex tourism obviously but tourism of all sorts.
Tourism in Thailand has created thousands upon thousands of jobs for local people and communities. Hotels are built and of course you need staff to work in the hotels. Resorts are built on the beaches and you need staff to work in the resorts. Tourists who are travelling are looking for exciting things to do while on holidays, so inspiring entrepreneurs create activities for them to partake in from rafting, trekking through mountains and elephant riding. Tourists need to eat and drink while on holiday so restaurants and drinking establishments are created and the cycle continues. All the while let’s remember that these establishments are not just created for the tourists but locals can appreciate them as well. You begin to see development of all sorts as infrastructure needs to be created and maintained (airports, roads, bridges etc.) Tourists come to your country, have an absolutely amazing time, go home and tell all their friends about it in a blog, and next thing you have more people visiting.
I can personally speak from experience by saying that Uganda, called the “Pearl of Africa” by Winston Churchill on his arrival due to vegetation and animal species, that it is one of most beautiful countries on this Earth. Of course I am a bit biased but speak to anyone who has been there and I am sure that they will say that same thing.
Uganda has a perfect climate with the equator passing directly through it, many different habitats from deserts, savannahs and mountains, over 1,000 species of birds, and is 1 of 2 places in the world where you can see mountain gorillas in its natural environment. Oh did I forget to mention that the river Nile starts in Uganda and flows backwards to Egypt! The list could literally go on and on however that is for you to investigate further. Even though groups have begun to create hotels and better infrastructure in regards to tourism the sector is far from saturated.
This is part 1 of what will be a series of posts based on the tourism sector and how it affects development. Please feel free to leave any comments or thoughts.
Wednesday, 3 September 2008
Chasing Stock Splits
Sorry to keep boring some of you by blogging about stocks and equities of companies, however I do believe that this asset class has the potential of improving the fortunes of many individuals in developing countries who invest prudently in established companies (think of individuals who made riches and drastically improved their financial situations by being first movers in the Chinese and Indian equities market.)
Back in the days of my Grandfather and great Grandfather Banks were little known phenomena. Even today with banks/financial institutions rushing to developing countries with speed, the culture of saving and depositing money into these institutions to build wealth has yet to really gather pace. Uganda has one of the lowest deposit rates for banks in East Africa and Sub-Saharan Africa alike. In the days of old people accumulated wealth by obtaining and holding onto vast swathes of land or prime plots of land, and this trend has carried on even till this day. One thing people know or should know however is that Real Estate is not something that you can sell and trade with the snap of a finger and takes time to be converted to money.
The Ugandan Stock Exchange recently celebrated its 10th anniversary and people are becoming savvier to the money which can be made through stocks. Remember the Safaricom IPO of a few months back? It was one of the most highly anticipated IPO’s to date and even though it was quite disappointing (I didn’t participate) it showed peoples newfound interest and appetite for risk in investing in stocks.
Recently Uganda Clays Limited conducted its 2nd stock split in the last couple of years to increase liquidity of its shares. In the end the company decided that a split of 100:1 would take effect. My measly 150 shares have grown now to 15,000 shares and even though they have been revalued at 170 Ugandan shillings per share the 60 shilling increase since the beginning of the week have netted me roughly 300.00 GBP in two days time. Not bad work shall I say for not even being in the country, watching via internet and being produced from a developing country (I love this game!)
Now seeing how easy it was to make a few dollars/pounds the last time and also realizing it would be nice to diversify a bit I’ve been looking for the next stock to invest in which is talking of splitting stocks. I earmarked Bank of Baroda Uganda a few weeks back. Bank of Baroda is actually an Indian bank who came to Uganda years ago and was the first financial institution to list on the exchange. Just like Uganda Clays Bank of Baroda has been dogged by the fact of liquidity and shares are quite hard to find as people are reluctant to let them go (especially now since a stock split is set for next week.)
I have been received a small lot of shares (nothing drastic) and am hoping on securing my 2nd round before the split occurs which is set to be 10:1. One of the frustrating factors is that the exchange only trades stocks on Monday, Tuesday and Thursday and to make matters worse trading on happens a few hours a day. Trades occur on a first come first serve basis and whichever broker gets in the cue first, is the first broker allowed to purchase. This can become quite a headache.
Tomorrow’s an important day and I hope that I can receive my allotment before the split occurs next week. I’ll keep everyone updated as to how it goes. I’m sure that I’ll find some time during the day to make the call to my broker via my 5 pound calling card to see what the situation is..
Back in the days of my Grandfather and great Grandfather Banks were little known phenomena. Even today with banks/financial institutions rushing to developing countries with speed, the culture of saving and depositing money into these institutions to build wealth has yet to really gather pace. Uganda has one of the lowest deposit rates for banks in East Africa and Sub-Saharan Africa alike. In the days of old people accumulated wealth by obtaining and holding onto vast swathes of land or prime plots of land, and this trend has carried on even till this day. One thing people know or should know however is that Real Estate is not something that you can sell and trade with the snap of a finger and takes time to be converted to money.
The Ugandan Stock Exchange recently celebrated its 10th anniversary and people are becoming savvier to the money which can be made through stocks. Remember the Safaricom IPO of a few months back? It was one of the most highly anticipated IPO’s to date and even though it was quite disappointing (I didn’t participate) it showed peoples newfound interest and appetite for risk in investing in stocks.
Recently Uganda Clays Limited conducted its 2nd stock split in the last couple of years to increase liquidity of its shares. In the end the company decided that a split of 100:1 would take effect. My measly 150 shares have grown now to 15,000 shares and even though they have been revalued at 170 Ugandan shillings per share the 60 shilling increase since the beginning of the week have netted me roughly 300.00 GBP in two days time. Not bad work shall I say for not even being in the country, watching via internet and being produced from a developing country (I love this game!)
Now seeing how easy it was to make a few dollars/pounds the last time and also realizing it would be nice to diversify a bit I’ve been looking for the next stock to invest in which is talking of splitting stocks. I earmarked Bank of Baroda Uganda a few weeks back. Bank of Baroda is actually an Indian bank who came to Uganda years ago and was the first financial institution to list on the exchange. Just like Uganda Clays Bank of Baroda has been dogged by the fact of liquidity and shares are quite hard to find as people are reluctant to let them go (especially now since a stock split is set for next week.)
I have been received a small lot of shares (nothing drastic) and am hoping on securing my 2nd round before the split occurs which is set to be 10:1. One of the frustrating factors is that the exchange only trades stocks on Monday, Tuesday and Thursday and to make matters worse trading on happens a few hours a day. Trades occur on a first come first serve basis and whichever broker gets in the cue first, is the first broker allowed to purchase. This can become quite a headache.
Tomorrow’s an important day and I hope that I can receive my allotment before the split occurs next week. I’ll keep everyone updated as to how it goes. I’m sure that I’ll find some time during the day to make the call to my broker via my 5 pound calling card to see what the situation is..
Friday, 29 August 2008
Back from a BR (I) C
For those of you who may be wondering what the title of this article is about, I’ve just returned from a whirlwind trip to India (hence the (I) ) which included visiting & experiencing several cities of one of the world’s great civilizations and next emerging superpowers. Oh yeah… I forgot to mention the fact that I also had the opportunity to participate in a 22-hour wedding, only to find out the next day that it proceeded on for another 2-hours (after I thought we had reached the finale and bowed out at 3:00 a.m.)
It was fascinating to see firsthand and form my own opinion of what exactly I believe has propelled this country into being a powerhouse and also being able to compare it to a developing country (Uganda) from which I have a large interest in and hold close to my heart.
When I’m usually travelling to the East and even sometimes to Uganda my preference is to travel with Emirates Airlines. I don’t know if it’s the individual movie screens and selection, nice hosts or the warm face towels they pamper you with before and during the flight. This time however we travelled with Lufthansa Airlines (via Frankfort) which meant no movies but at least I got to say Danke, Bitte Schon and display my wide vocabulary of German words. What I will say about Lufthansa airlines is that I enjoyed what probably was my finest airline meal of my life and the ride was comfortable.
After a quick layover in Frankfort airport we landed at the new Rajiv Ghandi International Airport, located in Hyderabad, India (pop. 7,000,000) and I will say this airport is definitely top shelf http://hyderabad.aero/index.html . As I was travelling with my wife and the in-laws who had been to Hyderabad several times before, they informed me that this new airport was 10 times better than the original Hyderabad airport which was located in the center of the city. They then went on to make wagers on how long the airport would be able to last in the nice condition it was in before being damaged. The Rajiv Ghandi airport very much reminded me of another airport which I had visited earlier and rated high as well, that being Suvarnabhumi International Airport of Bangkok http://www.bangkokairportonline.com/node/115 .
On the 45-minute ride from the airport to our accommodation I was amazed at the infrastructure in place. The roads seemed to be almost perfect without potholes and you could see the government was investing large amounts of money by constructing a large overpass which would connect the central part of the city directly to the airport. From my experience travelling in Africa unless something of utter importance was approaching (CHOGM) it was almost a bit bizarre to see the government investing in large scale infrastructure projects of any sort. This was the first time amongst many during my trip in which the importance of infrastructure and the role it plays in development was directly in my face. I think my mother-in-law forgot several times that my family comes from Uganda as she kept on apologizing for the state of the roads when we did encounter the slight pothole. I had to remind her that I had been through much, much worse and there were no problems at all.
After spending one day in Hyderabad and after a heavy duty shopping session we eventually made the way from Hyderabad to Guntur via car which equates to a 6-7 hour car ride excluding time used to switch flat tires caused by fast driving (which we had to do once). Again the roads were in much better condition to ones I have encountered in Uganda.
Guntur became our base for the next week of the trip. Now the relatives all considered Guntur to be a smaller “city” to them and it had a population of around 2 million people. What they consider to be a small city definitely was a bit different than my standards. Guntur was different from Hyderabad in the sense that the Subway’s, McDonald’s and Pizza Huts that we once were able to see were replaced with Gheeta’s Veg & Non-Veg restaurant.
One thing which I noticed during the trip was the prevalence of water. Now I know that India is blessed by the fact of having water surrounded at least 3 sides of its country while Uganda is a landlocked country. Whether we were travelling in the city centers, villages or in the countryside you would see many water pumps, people washing their hands and feet and transporting water from place to place. Water seemed to be in abundance and I thought back to my times in Uganda and seeing people with jerry cans transporting water on bikes for multiple kilometres at a time. You could also see rice paddy fields full to the brim knowing that irrigation was very much instrumental in this.
Now this being my first time to India I had mixed emotions on what to expect. I knew that I would have an absolutely amazing time and it would be great experience but I had some preconceived perceptions.
Right of wrong, having grown up in the United States, in central Illinois, smack middle of the cornfields as a Black man, I am always aware of how I am perceived by others (even as a 29-year old.) Maybe it’s due to the fact that the city in which I grew up in was around 97% white and conservative. Maybe it’s just down to the fact that I am a bit paranoid (racism doesn’t exist does it? i.e. plot to assassinate Barack Obama) With all of this in mind I always thought about how I was going to be looked at walking in India, me with my black skin (even thought some Indians were a shade darker than me and I’m a dark person) walking hand-in-hand with my Indian wife. In the end as always everything was just fine (I put it down to my rock star status.) There were the few odd stares here and there but nothing of any significance, if anything people stared more with a look of bewilderment and amazement versus a stare of discontent.
The remainder of the trip consisted of a lot of touristy attractions which was amazing to see however I wouldn’t be disappointed if I didn’t encounter another tourist guide for another few months. The guides tend to know all the best shops to visit (too many) and they are a must see.
We had the opportunity of visiting the beautiful city of Jaipur and also got to see one of the wonders of the world in the Taj Mahal. It’s evident that the importance education Indians have placed in their communities dating back to the 1700’s and earlier has had a great impact on where the country is today. The country I had the opportunity to see was literally dotted with higher institutions, business schools, IT centers and I must say that I saw some of the finest hospitals (at least from the outside) that I’ve seen in a developed (developing) country.
There is an astrological center in Jaipur that is still functioning to this day and can calculate the time of day within 10 seconds which I don’t consider to be too shabby considering it was build over 300 years ago! The Taj Mahal is another example of pure brilliance as one wonders as to how it was even constructed at that time without cranes. Magnificent craftsmanship with semi-precious and precious stones is displayed on the Taj Mahal and the government seeing that this craft should stay in the Indian community has constructed programs to see that these arts do not vanish from the culture; a step I think is rather noteworthy.
The trip in the end was pure class and I could write on and on about many things which I fortunately left out. If anyone has any questions about the journey please feel free to leave a comment.
It was fascinating to see firsthand and form my own opinion of what exactly I believe has propelled this country into being a powerhouse and also being able to compare it to a developing country (Uganda) from which I have a large interest in and hold close to my heart.
When I’m usually travelling to the East and even sometimes to Uganda my preference is to travel with Emirates Airlines. I don’t know if it’s the individual movie screens and selection, nice hosts or the warm face towels they pamper you with before and during the flight. This time however we travelled with Lufthansa Airlines (via Frankfort) which meant no movies but at least I got to say Danke, Bitte Schon and display my wide vocabulary of German words. What I will say about Lufthansa airlines is that I enjoyed what probably was my finest airline meal of my life and the ride was comfortable.
After a quick layover in Frankfort airport we landed at the new Rajiv Ghandi International Airport, located in Hyderabad, India (pop. 7,000,000) and I will say this airport is definitely top shelf http://hyderabad.aero/index.html . As I was travelling with my wife and the in-laws who had been to Hyderabad several times before, they informed me that this new airport was 10 times better than the original Hyderabad airport which was located in the center of the city. They then went on to make wagers on how long the airport would be able to last in the nice condition it was in before being damaged. The Rajiv Ghandi airport very much reminded me of another airport which I had visited earlier and rated high as well, that being Suvarnabhumi International Airport of Bangkok http://www.bangkokairportonline.com/node/115 .
On the 45-minute ride from the airport to our accommodation I was amazed at the infrastructure in place. The roads seemed to be almost perfect without potholes and you could see the government was investing large amounts of money by constructing a large overpass which would connect the central part of the city directly to the airport. From my experience travelling in Africa unless something of utter importance was approaching (CHOGM) it was almost a bit bizarre to see the government investing in large scale infrastructure projects of any sort. This was the first time amongst many during my trip in which the importance of infrastructure and the role it plays in development was directly in my face. I think my mother-in-law forgot several times that my family comes from Uganda as she kept on apologizing for the state of the roads when we did encounter the slight pothole. I had to remind her that I had been through much, much worse and there were no problems at all.
After spending one day in Hyderabad and after a heavy duty shopping session we eventually made the way from Hyderabad to Guntur via car which equates to a 6-7 hour car ride excluding time used to switch flat tires caused by fast driving (which we had to do once). Again the roads were in much better condition to ones I have encountered in Uganda.
Guntur became our base for the next week of the trip. Now the relatives all considered Guntur to be a smaller “city” to them and it had a population of around 2 million people. What they consider to be a small city definitely was a bit different than my standards. Guntur was different from Hyderabad in the sense that the Subway’s, McDonald’s and Pizza Huts that we once were able to see were replaced with Gheeta’s Veg & Non-Veg restaurant.
One thing which I noticed during the trip was the prevalence of water. Now I know that India is blessed by the fact of having water surrounded at least 3 sides of its country while Uganda is a landlocked country. Whether we were travelling in the city centers, villages or in the countryside you would see many water pumps, people washing their hands and feet and transporting water from place to place. Water seemed to be in abundance and I thought back to my times in Uganda and seeing people with jerry cans transporting water on bikes for multiple kilometres at a time. You could also see rice paddy fields full to the brim knowing that irrigation was very much instrumental in this.
Now this being my first time to India I had mixed emotions on what to expect. I knew that I would have an absolutely amazing time and it would be great experience but I had some preconceived perceptions.
Right of wrong, having grown up in the United States, in central Illinois, smack middle of the cornfields as a Black man, I am always aware of how I am perceived by others (even as a 29-year old.) Maybe it’s due to the fact that the city in which I grew up in was around 97% white and conservative. Maybe it’s just down to the fact that I am a bit paranoid (racism doesn’t exist does it? i.e. plot to assassinate Barack Obama) With all of this in mind I always thought about how I was going to be looked at walking in India, me with my black skin (even thought some Indians were a shade darker than me and I’m a dark person) walking hand-in-hand with my Indian wife. In the end as always everything was just fine (I put it down to my rock star status.) There were the few odd stares here and there but nothing of any significance, if anything people stared more with a look of bewilderment and amazement versus a stare of discontent.
The remainder of the trip consisted of a lot of touristy attractions which was amazing to see however I wouldn’t be disappointed if I didn’t encounter another tourist guide for another few months. The guides tend to know all the best shops to visit (too many) and they are a must see.
We had the opportunity of visiting the beautiful city of Jaipur and also got to see one of the wonders of the world in the Taj Mahal. It’s evident that the importance education Indians have placed in their communities dating back to the 1700’s and earlier has had a great impact on where the country is today. The country I had the opportunity to see was literally dotted with higher institutions, business schools, IT centers and I must say that I saw some of the finest hospitals (at least from the outside) that I’ve seen in a developed (developing) country.
There is an astrological center in Jaipur that is still functioning to this day and can calculate the time of day within 10 seconds which I don’t consider to be too shabby considering it was build over 300 years ago! The Taj Mahal is another example of pure brilliance as one wonders as to how it was even constructed at that time without cranes. Magnificent craftsmanship with semi-precious and precious stones is displayed on the Taj Mahal and the government seeing that this craft should stay in the Indian community has constructed programs to see that these arts do not vanish from the culture; a step I think is rather noteworthy.
The trip in the end was pure class and I could write on and on about many things which I fortunately left out. If anyone has any questions about the journey please feel free to leave a comment.
Saturday, 9 August 2008
India here I come
I've always been fascinated by travel. Seeing different parts of the world opens up our eyes to different cultures, different ways of living and in the end, hopefully makes us better individuals.
I've had a pretty good year for excursions if I do say so myself, and my wallet is definitely suffering, but hey you only live this life once.
In about one and a half hours time I'll be in a taxi on my way to the airport to India for the first time with my lovely wife. We'll be travelling to Hyderabad, Guntur and finally doing some sightseeing in New Delhi.
Needless to say I won't be able to blog freely and therefore everyone is going to have to wait and hear all my stories when I arrive back in the U.K.
As I'm an avid meat eater I'm wondering how I'm going to cope with all the vegetarian dishes that I'll be dining on and where I'll get my energy to write, let alone move.
It's going to be exciting to see a developing country which is rapidly advancing.
Until next time.
I've had a pretty good year for excursions if I do say so myself, and my wallet is definitely suffering, but hey you only live this life once.
In about one and a half hours time I'll be in a taxi on my way to the airport to India for the first time with my lovely wife. We'll be travelling to Hyderabad, Guntur and finally doing some sightseeing in New Delhi.
Needless to say I won't be able to blog freely and therefore everyone is going to have to wait and hear all my stories when I arrive back in the U.K.
As I'm an avid meat eater I'm wondering how I'm going to cope with all the vegetarian dishes that I'll be dining on and where I'll get my energy to write, let alone move.
It's going to be exciting to see a developing country which is rapidly advancing.
Until next time.
Wednesday, 30 July 2008
Uganda Stock Exchange & Uganda Clays Ltd.
There’s been a lot of discussion amongst investment circles for some time now of the BRIC’s, (Brazil, Russia, India, China) emerging markets and frontier markets. As developed stock markets have become increasingly volatile people have been looking for the next new havens to put their money and get good returns. With this point in mind I think the saying goes “The greater the risk, the greater the reward.”
Now while I may take the odd glace in the paper or internet at particular stocks (usually they’ll have some connection to Africa in some shape or form) I’ll easily admit that I’m not one to consult regarding formula’s for figuring P/E earnings, how to benchmark against competitors or true analysis. What I will say is that several times I have found and tracked stocks, and for the most part they have done very, very well ( I see you all nodding your heads that the same exact thing has happened to you and I’m sure that it has.)
I started tracking the Ugandan Stock Exchange around 1-2 years back. Whether I am situated in the country or abroad in the Western world, I read the newspapers daily and it is easy to keep track of what is going on through the business pages (http://www.newvision.co.ug/) or the bourse directly (http://www.use.or.ug/) In fact BusinessWeek recently wrote a very interesting article (http://www.businessweek.com/globalbiz/content/may2008/gb20080530_644799.htm) on the Ugandan Stock Exchange in which an American who invested $10,000 back in 2004, has seen his purse grow to a figure of $70,000 (I read this article after I had invested of course.) I believe he primarily invested in Uganda Clays Ltd and it went through a stock split of 10:1 which left him as a happy man (more on this later.) The BusinessWeek article should definitely be read by those interested and gives an idea of what you may encounter when playing the Ugandan Stock Exchange versus the London Stock Exchange or New York Stock Exchange.
I’m blessed enough to have a small property that I manage in the Central Business District of Kampala that has a tenant who pays me monthly rent. As the money accumulated from month to month in my account I started devising some way to make the money work a little better versus the small amount of interest it gained sitting in the banks coffers (I actually have to pay an administrative fee monthly just for having an account with the bank!) I decided that I would finally test my luck in stocks and would invest in Uganda Clays Ltd.
Now I didn’t do a tremendous amount of investigating into the stock (something I’m not advocating others to do) but I liked to think that I had a good grasp of the environment in the country and it didn’t hurt that UCL was one of the current best performers. East Africa in general and Uganda specifically has a tremendous housing shortage. The construction industry and real estate in general has gone through a boom period tremendously lifting the economy and UCL suppliers roofing tiles and other inputs to the construction industry.
I still remember trying to find the bourse and a broker who could facilitate the transaction for me. I found it a bit difficult as my good friend who accompanied me was having a hard time grasping the concept of what exactly stocks/equities were and what I was looking for. After going into several different banks and liaising with different parties I found myself at African Alliance which is a broker located on the 6th floor of the Workers House +256 414 235577 and completed the transactions quite smoothly. One thing to be aware of is that the USE only actually operates two hours a day, three days a week. I kept on thinking to myself “Why haven’t my stocks been purchased yet?” The reason was due to the fact that it was not a trading day.
All in total I purchased 150 stocks of UCL, hardly enough to break the bank. Thinking back I purchased the stocks at 6,450 Uganda Shillings per share which is the equivalent of roughly $3.90 per share. A few months later after financial results had been posted, to my amazement the stock stood above 10,000 shillings almost $6.06 per share and not a bad days work.
I received a notification of an extraordinary shareholders meeting in the mail the other day in England regarding a stock split and expansion efforts. As of today I can announce it was decided upon a stock split of 100:1, meaning my 150 shares will grow to 15,000 by the time it is all said and done with. Of course the price per share will fall to a little over 100 shillings per share but at least the stock is now accessible to the masses, UCL will be able to raise additional capital for the markets of Sudan and Rwanda and hopefully (fingers crossed) the share price will rise again.
Now while I may take the odd glace in the paper or internet at particular stocks (usually they’ll have some connection to Africa in some shape or form) I’ll easily admit that I’m not one to consult regarding formula’s for figuring P/E earnings, how to benchmark against competitors or true analysis. What I will say is that several times I have found and tracked stocks, and for the most part they have done very, very well ( I see you all nodding your heads that the same exact thing has happened to you and I’m sure that it has.)
I started tracking the Ugandan Stock Exchange around 1-2 years back. Whether I am situated in the country or abroad in the Western world, I read the newspapers daily and it is easy to keep track of what is going on through the business pages (http://www.newvision.co.ug/) or the bourse directly (http://www.use.or.ug/) In fact BusinessWeek recently wrote a very interesting article (http://www.businessweek.com/globalbiz/content/may2008/gb20080530_644799.htm) on the Ugandan Stock Exchange in which an American who invested $10,000 back in 2004, has seen his purse grow to a figure of $70,000 (I read this article after I had invested of course.) I believe he primarily invested in Uganda Clays Ltd and it went through a stock split of 10:1 which left him as a happy man (more on this later.) The BusinessWeek article should definitely be read by those interested and gives an idea of what you may encounter when playing the Ugandan Stock Exchange versus the London Stock Exchange or New York Stock Exchange.
I’m blessed enough to have a small property that I manage in the Central Business District of Kampala that has a tenant who pays me monthly rent. As the money accumulated from month to month in my account I started devising some way to make the money work a little better versus the small amount of interest it gained sitting in the banks coffers (I actually have to pay an administrative fee monthly just for having an account with the bank!) I decided that I would finally test my luck in stocks and would invest in Uganda Clays Ltd.
Now I didn’t do a tremendous amount of investigating into the stock (something I’m not advocating others to do) but I liked to think that I had a good grasp of the environment in the country and it didn’t hurt that UCL was one of the current best performers. East Africa in general and Uganda specifically has a tremendous housing shortage. The construction industry and real estate in general has gone through a boom period tremendously lifting the economy and UCL suppliers roofing tiles and other inputs to the construction industry.
I still remember trying to find the bourse and a broker who could facilitate the transaction for me. I found it a bit difficult as my good friend who accompanied me was having a hard time grasping the concept of what exactly stocks/equities were and what I was looking for. After going into several different banks and liaising with different parties I found myself at African Alliance which is a broker located on the 6th floor of the Workers House +256 414 235577 and completed the transactions quite smoothly. One thing to be aware of is that the USE only actually operates two hours a day, three days a week. I kept on thinking to myself “Why haven’t my stocks been purchased yet?” The reason was due to the fact that it was not a trading day.
All in total I purchased 150 stocks of UCL, hardly enough to break the bank. Thinking back I purchased the stocks at 6,450 Uganda Shillings per share which is the equivalent of roughly $3.90 per share. A few months later after financial results had been posted, to my amazement the stock stood above 10,000 shillings almost $6.06 per share and not a bad days work.
I received a notification of an extraordinary shareholders meeting in the mail the other day in England regarding a stock split and expansion efforts. As of today I can announce it was decided upon a stock split of 100:1, meaning my 150 shares will grow to 15,000 by the time it is all said and done with. Of course the price per share will fall to a little over 100 shillings per share but at least the stock is now accessible to the masses, UCL will be able to raise additional capital for the markets of Sudan and Rwanda and hopefully (fingers crossed) the share price will rise again.
Sunday, 27 July 2008
The Beginning...
I hope this doesn’t turn out to be too long, but I have to go back to a few months ago so that you fully understand where this blog and eventual website come from…
I still vividly remember the day that I handed in my notice to my boss. It had been a long time coming indeed. I had previously just relocated to Manchester, England, and found a corporate, fairly-well paying wage job with an American company in quite a short amount of time. While this job was a step up from my prior role and allowed me to develop and improve necessary skills in business and life, I myself knew that it was only a matter of time.
My daily routine commenced with me waking up between 6:00 – 6:15 a.m. and I would routinely arrive home around 7:30 – 8:00 p.m. most nights except Fridays. I’ll keep this section brief in order to not inherit a libel suit or to name any names, but I kept on thinking to myself as I have for the last couple of years than there had to be something else.
My parents and family come from the country of Uganda, which is located in East Central Africa (Sub-Saharan Africa) and is directly west of Kenya. My parents fled the country in 1975, to the United States during the terrible regime of Idi Amin that I’m sure many of you have heard of. If you wanted a quick introduction you could watch the movie “The Last King of Scotland” which featured Forrest Whittaker and James McAvoy.
Since the age of 12 my parents did all they could to make sure me and my siblings did not lose touch with our roots and traveled back to the country at least every 2-years. As children we were exposed to different ways of life many of our counterparts back in the Western world could not imagine. Thinking back to that time 12+ years ago it makes sense as the world was much less globalized during the early stages of the internet. My father grew up in the countryside in a village called Budondo, which is located near Jinja (45-minute drive to Kampala.) My mother grew up in the capital city of Kampala.
As I continued to make trips back to Uganda throughout the years, I knew that I wanted to somehow be involved of the transformation of not only Uganda, but the continent as a whole. Walking through the streets of the neighborhoods in Kampala and elsewhere you would constantly see flashes of entrepreneurial magic in regards to creativity and innovative thinking.
One question that always filled my mind is what the people could do with the right technologies and inputs? I grew up playing computer games such as “Ages of Empires” and “Sims” so I guess you could say that I liked creating, watching and trying to influence how things can grow, call it development if you want to.
I decided I would somehow try and find a way to make a difference in people’s lives and leave the world knowing that I partook in something worthwhile that had some meaning to it.
This is the beginning of my journey to make a difference and reap the financial rewards associated with taking a chance and following what you believe in.
I still vividly remember the day that I handed in my notice to my boss. It had been a long time coming indeed. I had previously just relocated to Manchester, England, and found a corporate, fairly-well paying wage job with an American company in quite a short amount of time. While this job was a step up from my prior role and allowed me to develop and improve necessary skills in business and life, I myself knew that it was only a matter of time.
My daily routine commenced with me waking up between 6:00 – 6:15 a.m. and I would routinely arrive home around 7:30 – 8:00 p.m. most nights except Fridays. I’ll keep this section brief in order to not inherit a libel suit or to name any names, but I kept on thinking to myself as I have for the last couple of years than there had to be something else.
My parents and family come from the country of Uganda, which is located in East Central Africa (Sub-Saharan Africa) and is directly west of Kenya. My parents fled the country in 1975, to the United States during the terrible regime of Idi Amin that I’m sure many of you have heard of. If you wanted a quick introduction you could watch the movie “The Last King of Scotland” which featured Forrest Whittaker and James McAvoy.
Since the age of 12 my parents did all they could to make sure me and my siblings did not lose touch with our roots and traveled back to the country at least every 2-years. As children we were exposed to different ways of life many of our counterparts back in the Western world could not imagine. Thinking back to that time 12+ years ago it makes sense as the world was much less globalized during the early stages of the internet. My father grew up in the countryside in a village called Budondo, which is located near Jinja (45-minute drive to Kampala.) My mother grew up in the capital city of Kampala.
As I continued to make trips back to Uganda throughout the years, I knew that I wanted to somehow be involved of the transformation of not only Uganda, but the continent as a whole. Walking through the streets of the neighborhoods in Kampala and elsewhere you would constantly see flashes of entrepreneurial magic in regards to creativity and innovative thinking.
One question that always filled my mind is what the people could do with the right technologies and inputs? I grew up playing computer games such as “Ages of Empires” and “Sims” so I guess you could say that I liked creating, watching and trying to influence how things can grow, call it development if you want to.
I decided I would somehow try and find a way to make a difference in people’s lives and leave the world knowing that I partook in something worthwhile that had some meaning to it.
This is the beginning of my journey to make a difference and reap the financial rewards associated with taking a chance and following what you believe in.
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