China is investing so much money in Africa," says emerging markets expert Manraaj Singh "that I think our positions there are going to be booming for the next 50 years."
China is in the middle of a crisis so huge... they are having to take the most extraordinary steps... and here’s why...
You see, the world’s most populous nation is rapidly losing the ability to feed itself. And they’re turning to Africa to solve that problem.
China has about 40 per cent of the world’s farmers but just 9 per cent of the world’s arable land. So, with its increasingly rich population now turning away from traditional diet staples - like rice - towards meat, China now has to import huge amounts of feed. Food prices in China have risen 25 per cent year in the last year. That’s the highest level of farm inflation since the early 1990s.
China’s leaders are now desperate to guarantee their country’s food security. So, the Beijing government looks set to adopt a plan to support Chinese agricultural companies buying farmland abroad... and they’re focusing on Africa and South America.
Beijing already has similar policies to boost offshore investment by banks, manufacturers and oil companies... a lot of that money has flowed into Africa. The continent’s mineral wealth has been feeding China’s rapid industrial growth... which is having a hugely positive impact on Africa’s economic development.
I have already alerted my investors to a profit opportunity surrounding investment deals in the Congo worth $42 Billion. But the impact of all of that is going be small compared to what we are about to see... Africa is about to become the new rice bowl of China.
It isn’t front page news today, but this new policy marks one of the great turning points in global history - mark my words on that. I wouldn’t use a term like that lightly, but that’s exactly what I mean. Because this marks the point from which development in Africa is really going to take off. Africa is still an agricultural economy, so this gives the continent’s millions of farmers a chance to finally plug into the global economy.
China isn’t alone in this problem...
But China isn’t the only one desperately looking for agricultural land abroad. The oil-rich but food-poor countries of the Middle East and North Africa are in the same boat. Libya is talking to Ukraine about growing wheat in the ex-Soviet country and Saudi Arabia has said it would invest in agricultural and livestock projects abroad to ensure food security and control commodity prices.
Oil rich Qatar has just agreed to invest $200 million in Cambodia’s agricultural infrastructure. In return, Qatar aims to secure some of the purchasing options on yields from the crops, giving the Gulf state an opportunity to stake a claim on a reliable future food supply. But the Middle Eastern countries are minnows compared to China... and that’s why I am so excited about this latest development...
The idea of Africa actually helping solve the global food crisis may sound ridiculous. In fact, the only time you ever hear about the continent in the mainstream news is when there’s a famine or civil war somewhere on the continent. But that doesn’t give an idea of the scale of the change happening there right now.
Part of that is because people often don’t realise how truly vast Africa is. Even the regular maps of the world that most of us use don’t give a clear idea. Most of them are traditional "Mercator" maps with distorted proportions. You’ll see what I mean if you click here
But take a look at Africa on the "Peters Projection" map that gives an undistorted view of the world and you see how much bigger Africa really is:
The biggest growth story of the next fifty years...
I’ve been telling my investors about everything going on in the continent that isn’t being reported... another reason why I’m so excited... not a lot of people are in the know. And China’s latest move is like the icing on the cake...
I believe that getting into Africa today is like having bought into China or India in the very earliest stages of their economic take-off. I have absolutely no doubt that we are seeing the beginning of one of the greatest growth stories of the next 50 years.
My biggest Africa play involves a small company with a share value of pennies - that is holding America to ransom over $135 billion dollars worth of oil...
It’s an amazing story and you can learn all about it here...
Regards,
Manraaj Singh
Editor
Profit Hunter
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