Saturday, November 21st, 2009

Peace Talks In Zimbabwe Could Mean Big Profits For Us

Aug 8th, 2008 | By Manraaj Singh | Category: Emerging Markets, Financial News

Rumours are flying of a deal between the government and opposition in Zimbabwe…

As we hear it, Robert Mugabe will become the ceremonial president. Morgan Tsvangirai will become executive prime minister.

That’s precisely what we want to see. Because we have a direct stake in the outcome.

We’re invested in a little company that is positioned to profit handsomely if things turn around in Zimbabwe. It’s got big investments in this country. It’s involved in IT and finance and chemicals… But there’s more to it. Because an end to the country’s political crisis is also going to be fantastic news for the region.

Zimbabwe is a landlocked country. So a lot of its international trade used to flow through the port of Beira in Mozambique.

That port is in for boom times if Zimbabwe’s economy turns around.

And our company has invested in major commercial property right in the centre of Beira. That will put it smack in the centre of Zimbabwe’s revival…

And that’s what we could be about to see if today’s rumours are right…

Zimbabwe may be about to turnaround…

South African newspaper The Star broke the story yesterday.

The two sides have been trying to hammer out a deal in South Africa. And the paper says it has seen a copy of the draft agreement they have reached.

Under the agreement Tsvangirai will appoint two deputy prime ministers. One will be from his Movement for Democratic Change. The other will be from Mugabe’s ruling ZANU-PF. More than twenty ministerial posts will be split between the two parties.

Mugabe will stay out of daily government decisions. And an amnesty will be declared for pre-election violence.

We’ve still got to wait for an official announcement. But it looks like we could finally see an end to Zimbabwe’s decade of turmoil.

And if it does, Zimbabwe looks set to re-emerge as a major regional powerhouse economy.

Of course we have seen several false dawns in Zimbabwe already. This could turn out to be just one more.

But we have actually seen some signs of sanity returning to the country recently. (Sanity is a relative term, of course)…

Zimbabwe’s central bank lopped off ten zeroes from the value of the Zimbabwean dollar at the start of this month. That revalued Z$10bn of existing currency to one Zimbabwe dollar.

That’s given the country’s economy breathing space from the 2.2 million percent inflation that it’s been struggling with. But without a solution to the political crisis it won’t be long before hyperinflation returns.

A lot hangs on the negotiations going on right now. But if The Star’s information is right, Zimbabwe could be on the brink of a big turnaround.

And if that happens, our little company is there to profit from it.

It’s a good time to get in to Africa

We’ve been keeping our ear very close to the ground on this situation. Because Africa offers some of the hottest investment opportunities on earth right now. And that little company that I was telling you about is involved in many of the best of them.

It isn’t just positioned to profit from a turnaround in Zimbabwe. It has also taken control of a small port on the west coast of Africa. That was probably one of the smartest moves I’ve ever seen. Because that port is critical to America’s economic future. That was honestly one of the most audacious moves I’ve ever seen. And I’ve written a short piece on it that you can read here.

Regards,
Manraaj Singh
Editor
Profit Hunter

Source: Peace Talks In Zimbabwe Could Mean Big Profits For Us


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More on this topic (What's this?)
One Step Closer to the United States of Zimbabwe
Lopping off zeros in Zimbabwe
100 Trillion Zimbabwe Dollar Bill
Read more on Investing in Zimbabwe at Wikinvest
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By Manraaj Singh

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About the Author

Manraaj Singh is a contributor to the Daily Reckoning U.K. and Asia specialist for Profit Watchs' Profit Hunter. He read Economic History at Oxford University where he studied the differences in Asian and Western models of international business. Interested in financial markets from an early age, he has successfully traded in Asian equities and options.

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