Browsing: premium

Adding debt of leverage to the capital structure of a company, also in the right instances can increase the return on equity and/or return on investment for shareholders. Chief executives of listed companies and their chief finance officers tend to wax lyrical about these metrics.

They do so for good reason because they are judged to either be doing a good job or poor job depending on whatever these numbers read. The better this metric looks the more likely a company executive can look forward to a fat bonus and pay package! In addition to being a tax shield for a company’s profits, debt can enhance the returns a company generates for its shareholders.

Take the following scenarios that take place under the exact same set of circumstances.

UNCTAD World Investment Report 2021 specifically states that “Greenfield investments in industry and new infrastructure investment projects in developing countries were hit especially hard.”

These financial flows of investment dollars have deep-rooted implications for Africa in the sense that they are vital for sustainable development in less developed and poorer countries.

The decline in investment flows was disproportionately skewed towards developed countries where FDI fell by 58 per cent according to UNCTAD. Investment flows in developing economies fell by a moderate 8 per cent mainly because of resilient flows in Asia.

On a spiritual level, the fracturing of the relationship between the people and the land as urbanisation kicked in with a vengeance is causing lasting and severe damage to the environment and the population’s food security.  

The curious thing to a British observer is that nearly all of the people of my age (more than 50 years!) whom I know and who are at the top of their professions in finance, government, trade, hospitality or retail are also…..farmers.

In fact, I know hardly anyone who came to the big city seeking an escape from rural ways who is not now farming in the village or on the outskirts of their city. Many times I see them a good deal more excited about their crops than they are about their balance sheets.