Investment in Africa Challenges: Bad Management in Congo and Junk Bonds in Rwanda
A Canadian investment company that has promised to leverage opportunities in the war ravaged county of the Democratic Republic of the Congo (DRC) recently averted bankruptcy, thanks to a last minute lifeline funds guaranteed by the governments of Great Britain, France, and Spain.
At the same time, after initial bonds, whose prospects of return remain brisk at the best, the Rwandan government has been issuing new bonds, with rosy promises to would be investors.
Questionable Investment Goals in DRC
In DRC, the funds of $35 million bought shares, amounting to 60% of the Toronto-listed Feronia Inc. Feronia Inc. was founded in 2008 by