...The Company’s incentive to invest in Africa now Need for Infrastructure development in Africa Africa is rich in natural resources and thus also has an agro-based economy. It is seeing a great demand of its products like tea and coffee internationally leading to higher exports; in spite of the surge in exports, Africa has not been able to rival its counterpart emerging economies like India and China in terms of economic development. The cause of this misbalance is the lack of infrastructure development, which has a direct causal relationship with economic development. It is important to invest in Infrastructure in Africa for poverty reduction and economic development. Infrastructure has always been costly in Africa due to lack of efficiency but that doesn’t deter the increased demand, which resulted from an increase in population and urbanization. The World Bank estimates that the current infrastructure financing needs are US $95 million in Africa out which there is financing for US $45 billion1. The current gap should have been US $48 billion but leads to much more since nearly 35% of it is wasted due to inefficiencies. Most of the current financing in infrastructure has been through the Public sector with the Private sector contributing 21% share2. Infrastructure development would have positive effects in East and Central Africa and would contribute to 2% to the Gross Domestic Product. An example of connection of infrastructure to economic development is seen in China, where...
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...9-204-109 REV: OCTOBER 23, 2006 MIHIR DESAI Globalizing the Cost of Capital and Capital Budgeting at AES In June 2003, Rob Venerus, director of the newly created Corporate Analysis & Planning group at The AES Corporation, thumbed through the five-inch stack of financial results from subsidiaries and considered the breadth and scale of AES. In the 12 years since it had gone public, AES had become a leading independent supplier of electricity in the world with more than $33 billion in assets stretched across 30 countries and 5 continents. Venerus now faced the daunting task of creating a methodology for calculating costs of capital for valuation and capital budgeting at AES businesses in diverse locations around the world. He would need more than his considerable daily dose of caffeine to point himself in the right direction. Much of AES’s expansion had taken place in developing markets where the unmet demand for energy far exceeded that of more developed countries. By 2000, the majority of AES revenues came from overseas operations; approximately one-third came from South America alone. Once a critical element in its recipe for success, the company’s international exposure hurt AES during the global economic downturn that began in late 2000. A confluence of factors including the devaluation of key South American currencies, adverse changes in energy regulatory environments, and declines in energy commodity prices conspired to weaken cash flow at AES subsidiaries and hinder...
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...Jacek Tomaszewski SPECYFIKA RYZYKA INWESTYCYJNEGO W ALTERNATYWNYCH SYSTEMACH OBROTU NA PRZYKłADZIE RYNKU NEW CONNECT 1. WSTęP Jednym z najważniejszych przejawów liberalizacji form zorganizowanego obrotu papierami wartościowymi (szczególnie na rynku akcji) było powstanie i dynamiczny rozwój instytucji określanych mianem wielostronnych platform obrotu (MTF - Multilateral Trading Facilities). Oddolny proces tworzenia tego rodzaju inicjatyw osiągnął taką skalę, iż znalazł swoje odzwierciedlenie w jednoznacznej definicji zjawiska w przepisach prawa takich jak regulacje Unii Europejskiej. Zgodnie z definicją Dyrektywy MIFID „wielostronne platformy obrotu (MTF)” oznaczają wielostronny system, obsługiwany przez przedsiębiorstwo inwestycyjne lub podmiot gospodarczy, który kojarzy transakcje strony trzeciej w dziedzinie kupna i sprzedaży instrumentów finansowych – w systemie i zgodnie z regułami innymi niż uznaniowe – w sposób skutkujący zawarciem kontraktu[1]. Pierwszy etap rozwoju platform obrotu typu MTF to inicjatywy podejmowane przez przedsiębiorstwa inwestycyjne lub ich konsorcja tworzące elektroniczne platformy obrotu skierowane przede wszystkim do hurtowych uczestników rynków finansowych. Platformy takie pojawiły się początkowo na rynku amerykańskim gdzie określane były mianem ECN (Electronic Communication Networks). Pojawienie sie i rozwój ECN spowodował zagrożenie dla pozycji tradycyjnych giełd papierów wartościowych jako głównych organizatorów masowego obrotu...
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