Read on Twitter
BROAD MONEY M2 SUPPLY & THE INVESTOR
You are an executive at H&M and are informed you have some cash to open 10 new stores in Sub-Saharan Africa. Impressive GDP growth figures are presented. But, you wonder why your peers are not going full swing into this region. You ask for...
You are an executive at H&M and are informed you have some cash to open 10 new stores in Sub-Saharan Africa. Impressive GDP growth figures are presented. But, you wonder why your peers are not going full swing into this region. You ask for...
an extra set of figures. You want to know how much money is in the pocket of individuals. Basically, you want to know what is called Braid Money Supply M2 (money in the pocket, cards, on phones, ATMs). Money that is easily reached to buy a multi-pack set of Tees.
Namibia has about 2.6 million people. Give or take. But their BMS M2 is approximately $6 billion. That gives an average of $2,307 per individual. No East African country even boasts that GDP Per Capita!
You ask for the Botswana figures. You already have a presence in SA.
You ask for the Botswana figures. You already have a presence in SA.
No need to ask about SA.
With 2.4 million people, Botswana has a BMS M2 of $7.7 billion. That translates into an individual amount of $3,208! Did I hear a shout of midro-income? Dream on.
These are good. So, Namibia and Botswana get onto the list. Mauritius, too.
With 2.4 million people, Botswana has a BMS M2 of $7.7 billion. That translates into an individual amount of $3,208! Did I hear a shout of midro-income? Dream on.
These are good. So, Namibia and Botswana get onto the list. Mauritius, too.
But, you have heard of the progressive leaders of East Africa. The impressive growth figures. You ask for all the countries' stats. Kenya, Rwanda, Tanazania & Uganda.
You avoid Burundi & South Sudan. Put Ethiopia in the to-do later list. Chuckle at Eritrea. Africa's poor...
You avoid Burundi & South Sudan. Put Ethiopia in the to-do later list. Chuckle at Eritrea. Africa's poor...
imitation of North Korea.
Kenya is marvelous. BMS M2 of $29 billion for 48 million people, gives an individual $604 of ready to spend money. This is nice. It will be a good prospect.
Tanzania is a huge market. All of 57 million people. Your heart races. This may be good...
Kenya is marvelous. BMS M2 of $29 billion for 48 million people, gives an individual $604 of ready to spend money. This is nice. It will be a good prospect.
Tanzania is a huge market. All of 57 million people. Your heart races. This may be good...
Wait! What? No. BMS M2 of $9.5 billion gives each of the 57 million Tanzanians only $168 of ready to spend money. Some items in the stores are much more expensive than this. But, the GDP growth figures are impressive. What's the problem? Asterisk. Consider in 5 years.
They always talk about Rwanda. Singapore of Africa. Okay. 12.9 million people share about $2 billion of BMS M2. That is $155 per individual if the world was fair & equitable & worked that way. Why would anyone compare this to Singapore? You ponder. Asterisk. Consider in 5-10yrs.
Uganda. Hmm. One leader for34 years. Okay. Peaceful. Nice. BMS M2 is always around $6 billion. 42 million hardworking souls. That makes it $142 per individual! The cost of a good Timberland. Ridiculous. You wouldn't survive here.
You chalk off all of East Africa.
You chalk off all of East Africa.
The team tries to convince you to invest in Kenya. You refuse. Stores are closing day and night. Exiting the market. The rental rates are high for no reason.
This is a fictionalised account of how money supply does affect investment decisions for some players. Maryam, H & Anayat, U (2019) actually examine that relationship and come up with interesting conclusions on the relationship btn mine supply, FDI & economic growth.
Someone once stated that Uganda's monetary policy is a punishment, as there is actually need for a lot of money since the suppressed demand is overwhelming. 42 million Ugandans have less money available to them than the 2.4 million Tswana. Other variables, exist, of course.
