Investing in the World's Fastest Growing Middle Class
23 April 2014 - 12:30AM
Investor and philanthropist George Soros has described Africa as
'one of the few bright spots on the gloomy global economic
horizon'. It is, as Soros points out, the world's fastest-growing
global middle class. The African Development Bank puts the
stable middle class at 123 million, 13% of the population. By 2060,
says the bank, the number of middle-class Africans will grow to 1.1
billion (42% of the predicted population).
Most investors—or companies for that matter—don't spend a lot of
time thinking about or indeed considering Africa as a place to
diversify holdings. While that may be fair given the usual news
that comes out of that emerging continent, it's likely
shortsighted. As far as resource rich and economically emerging
West Africa is concerned, consider these facts:
- Population 318 million. Forecast to 500 million by 2035
- Twice the size of the EU
- 2013 GDP 6.2%. 2014 average WA forecast 7.1%
- Sierra Leone, 2014 GDP forecast to 14%
- 60% Urban population by 2030
- 66% of current population under 25 years of age
- consumer spending forecast to reach USD 1.4 trillion in
2020
- business technology development a major economic driver.
As its core business, Sunergy Inc. (OTCBB:SNEY) (OTCQB:SNEY) has
made a transition from an exploration only company to a company now
focused on production and cash flow. It now has four dredges
operating, 2 in Sierra Leone and 2 in Liberia to extract gold and
diamonds. A 5th dredge sits between the two countries awaiting the
most favorable deployment opportunity for realizing fast cash
flow.
"We intend on generating revenue through the production of
diamonds and gold in Sierra Leone and Liberia. Recent findings of
large diamonds in neighboring properties show more than possible
potential for profits that would cash flow in excess of our
expenses," stated Garrett Hale, CEO and President of Sunergy
Inc.
Early results will begin to be reported as soon as the
overburden is removed and the Company is able to process alluvial
gold and diamond bearing gravels; projected to be available by the
end of April.
Hale continues: "Running our company in the black is a direction
we feel achievable with the mineral potential shown by recent
neighboring operations. We run a tight ship with low overhead and
feel we have an advantage over large scale mining companies, which
means profit for our investors and shareholders."
While the Chinese have invested in Africa's natural resource
extraction for more than a decade, it is only more recently that
other international investors are waking up to the potential from
Africa's imminent boom in consumer spending, which is set to rise
from USD 860 billion in 2008 to USD 1.4 trillion in 2020, according
to the McKinsey Global Institute.
In addition to its core mining activities, Sunergy has used
those considerable contacts earned over the past 4 years to develop
non-mining partnerships and agency agreements with major
international businesses representing Airport Security, Affordable
Housing projects and Solar energy projects up to 250 megawatts, in
the five West Africa Countries of Ghana, Sierra Leone, Liberia, The
Gambia and Senegal.
Sunergy's competitive advantage is really quite simple. The high
level contacts, both private and government influencers gained in
the region open the Company up to stellar business opportunities.
As a result of successes realized in its mining endeavors, it has
developed a reputation of being a preferred group when new
initiatives are either proffered or discovered. And being the
middleman in these transactions, the Company needs employ little or
no capital. Earnings take the form of revenue sharing; particularly
in the form of royalties, finder's fee or a combination.
Utilizing local mining expertise, the Company has been very
successful finding the appropriate areas to mine and as a result of
fair treatment of the locals, has developed an enviable pipeline to
prolific diamond/gold rich areas.
Sunergy is already making significant inroads that will
undoubtedly yield significant shareholder value.
One example—of many—is the deal struck with the Government of
Senegal, who has a dire need for affordable housing. Sunergy,
through its contacts made the government a proposal to build 5000
homes (all of which are to be 100% financed by the government). The
proposal was returned to Sunergy asking for a proposal for 15,000
homes. A testament to the trust and business acumen the Company has
developed in the region.
Sunergy's executive in the region, Stephen Parent stated: "We
strive to ensure that our endeavors are not capital intensive.
Sunergy is now a hybrid type of Development Company in West Africa.
As a result of the work we have put in over the last four years,
there is a very good chance we will be the first to see the best
opportunities. Our experience further ensures that we can quickly
act on these opportunities with the professionalism and
transparency we are known for."
For investors who wish to gain exposure to the West Africa area,
Sunergy provides a unique opportunity to grow along with this
burgeoning and rapidly emerging market.
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CONTACT: Sunergy Inc.
14362 N. Frank Lloyd Wright Blvd.
Scottsdale, AZ 85260
Phone: 480.477.5810
Fax: 480.477.5811