AFRICANGLOBE – From manufacturing, financial services, renewable energy, petrochemicals and mobile data, global and African investors are seeing dollar signs.
The past few months have a dark time for Ivan Glasenberg, CEO of commodities giant Glencore. With the tumble in global commodity prices, Glasenberg has lost 74% of his net worth this year and 81% since July 2014, when he was the 190th-richest person in the world with $7.3 billion.
Still, the company has recovered losses since last Monday’s 29% plunge – when Glasenberg lost $500 million in a single day – which was sparked by concern the stock could be worthless if metal prices keep sliding.
The shares bounced back last week after the company released a statement saying its business is “robust” and it has secure access to funding. Analysts including Citigroup Inc. had said that dumping the stock was unjustified and recommended buying the shares.
In his first public appearance since last week’s selloff, Glasenberg chose to focus on the copper price and how it doesn’t reflect supply and demand for the metal. He spoke, along with the Central Bank of Nigeria Governor Godwin Emefiele, at a seminar called “Managing the Commodity Cycle” in Claridge’s Hotel in London’s Mayfair district.
“It’s clear that there’s distortions,” Glasenberg said. “How big they are we don’t know, but eventually the fundamentals will prevail.”
Others are just as confident about Africa’s prospects in the medium term, despite the current turbulence. Here are 15 big investments that global and African companies have planned for the next few months:
1. Africa’s richest man Aliko Dangote recently announced plans to invest $400 million in constructing a cement plant in Zimbabwe, which, when completed, will produce 1.5 million tonnes of cement a year. Dangote Cement Plc, Africa’s biggest producer of cement, plans to expand into 14 African countries outside its home Nigerian market and is investing about $4 billion to boost capacity to 50 million tons by the end of this year.