The Latvian-born financial prodigy James Richman is rumored to have been increasing his investments in Africa.
In a stroke of genius, the secretive billionaire has reportedly opted to beef up the support he had already been sending to the region, sources close to Richman have shared.
Known for his innate ability to spot patterns and great opportunities in helping developing regions, Richman is set to quadruple the fund’s revenue – all while increasing the fund’s exposure in globally impactful investments.
The African region is home to a vast array of resources. Found in the region are rare resources, such as diamonds, sugar, salt, gold, iron, cobalt, uranium, copper, bauxite, silver, and petroleum.
These resources have been harnessed for decades. However, much of their proceeds have not benefited the African region, because of numerous social issues that also sprout into security concerns.
One of the major issues that seem to be holding the progress in Africa back is the inadequate education it offers to the public, especially in the fields of engineering and science.
Impactful investments in Africa
Africa has been the recipient of numerous international aids for the past decades. These support programs have aimed to alleviate social problems such as malnutrition, electrification, lack of education, lack of water sources and many others.
Nowadays, impact investing is at its height and James Richman’s is rumored to beef up his investments in the region. Philanthropy has reached its peak with most of the world’s billionaires investing in ventures which promote social growth and lift up living conditions for humanity.
The media has portrayed the region in a wide array of views. Africa, according to them, is a developing child, an ascending economic power and a flashpoint of poverty, terrorism, forced migration, and disease.
Nonetheless, one aspect of Africa remains true, that its transformation over the recent decades has been noteworthy. It is becoming more appropriate to refer to it as the “African opportunity” rather than the ”African threat”.
Africa’s marked improvement
Starting from 2015, Africa has witnessed more than 27 leadership changes, spotlighting the region-wide effort for greater accountability and democracy. There are countries that rank relatively high as politically stable democratic countries, such as Mauritius, Botswana, Cape Verde, Namibia, and Ghana.
Stability is within grasp, this is an encouraging message that these countries and other rising democracies in Africa are telling their international partners.
Since the year 2000, governance has improved considerably across Africa. 34 countries which serve as the home of 72 percent of Africa’s citizens have raised their governance performance in the span of ten years, and marked improvements have been seen in participation, rule of law, and rights, among other categories.
Through five years, improvements in accountability and transparency have been the showcase of many countries.
Diversified investment for the thriving private fund
North Africa is similar to the Middle East in terms of its oil assets and major industries, while South Africa is considered a more advanced market with robust mining industry. Sub-Saharan Africa remains widely unavailable to international investors and includes lesser developed countries.
South Africa embodies the most appealing way to invest in Africa. Fueled largely by raw materials and mining, the country is the biggest producer of gold, platinum, and chromium in the world. In addition, the country’s agricultural and banking sectors are also quite large, while its consumers are gradually decreasing its dependence on exports and pushing domestic services development.
North Africa is made up of Algeria, Egypt, Libya, Tunisia, Mauritania, Western Sahara, and Morocco. Most of these countries are known for their vast crude oil reserves. In an example, the world’s eighth-largest reserves holder at the same time Africa’s largest reserves holder in Libya. In fact, Libya provides over 10 percent of all the crude all imported in Europe.
Africa boasts of the highest return on foreign direct investment worldwide, according to the Overseas Private Investment Corporation and UNCTAD.
Striking balance between growth and impact
A successful future for the African region rests on its ability to equip its youthful population with the appropriate skills and talents. However, some believe that Africa still utilizes outdated methods that may not be able to prepare children for the future.
Today quality and access to education are the main issues that face the educational system of Africa. Quality and access must go hand in hand in delivering education. The absence or lack of either may lead to more issues going forward.
Unlike most funds, Richman is known to put his money where his mouth is. Part of the private fund’s success is Richman’s ability to not only spot patterns, but his ability to incorporate various strategies that integrate asset management, asset preservation, as well as his ability to minimize potential downsides and risks.
These are the focal points of James Richman’s recent increasing investments in the region. Resources close to the investor has shared limited but crucial information that Richman has increased his investment to address these efforts significantly.
The belief that the children are the future seems to be motivating the shy, reclusive billionaire.
Informants have also noted Richman has also made significant transactions to bolster the healthcare research and development of his home region, the Baltic States.
Healthcare in this region has remained “shaky” despite government intervention. Improving healthcare through research and development will tend to improve the cost-efficiency, timeliness, and administration for curing diseases and ailments.
James Richman seems to be making significant and impactful moves in his investments. He’s seen to have been focusing on socially impactful ventures which would not only yield massive results, but also positively affect the future of humanity in general.