By Andrew Collier, Orient Capital Research
Chinese investors have discovered a new way to spirit money out of the country behind the backs of the country’s regulators.
In recent years, savvy investors have used false invoicing as a way to disguise their capital flight. A Chinese company pays $1m to a foreign company for a machine tool that is actually worth $500,000; the rest is invested in property or stocks in London or Sydney or New York. Read more
By Aubrey Hruby and Dawda Jawara III
Poor and insufficient infrastructure remains one of Africa’s starkest development challenges. Despite the continent’s sustained growth and rapid urbanisation rates, its infrastructure investment deficit remains staggeringly high: $50bn annually, according to the African Development Bank. The gap applies mainly to energy, transport, water and sanitation, but the region is also struggling to construct enough education, culture, tourism and healthcare infrastructure for burgeoning populations. This gap impacts Africa’s businesses, entrepreneurs, and young people. A new report from the Center for Global Development reveals the high importance placed on infrastructure by Africans across the continent relative to jobs and income related issues. In order to increase the pace of critical infrastructure investment, innovative financing mechanisms must be studied and scaled up. Read more