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Re:Why are there so many unfinished buildings in Africa? by baybal2 on Monday May 03, 2021 @08:39AM (#27024274)
> The lack of liquidity in the financial system then further limits what banks can lend to builders.

The massive credit expansion is exactly what you don't want if you want to ease the housing market.

The Economist got almost everything in this story wrong.

I have personal experience of being to Nigeria a few times on infrastructure subcontract projects.

The predominant portion of those abandoned construction sites are made by plain fraudsters, take money, make a semblance of construction going, then vanish with money.

Urban apartment housing in most of Africa is seen as something for a more affluent, and well off, much alike how it is in Asia, and not the other way around as it is in the West.

There are quite proficient builders in economically relatively well doing African countries. Take a look on http://www.mhfproperties.com/

Where fraud proliferates are 2nd tier African economies, and housing for people lower on the class ladder (ones who are just entering the middle class, and still want save hard on housing.)

The shortages of cement, steel, and construction supplies bear much more on the availability of housing than any of that "liquidity" thing.

Africa needs more factories, more mills, more kilns, more technical know how. At the moment even such basic things like petrol, and cement are largely import only even in most developed African economies.

This leads to those countries squandering their short FX resources gained largely from agricultural exports, which could've been spent in import of something more useful, and productive, like plant machinery.

Re:Why are there so many unfinished buildings in Africa? by LaMarseillaise on Monday May 03, 2021 @11:58AM (#27026714)
> Africa needs more factories, more mills, more kilns, more technical know how.

Building capital requires financing. Financing depends on trust and stability. From your description, it seems like the issue is an ineffective legal system that allows widespread fraud.

Re:Why are there so many unfinished buildings in Africa? by sthnblllII on Monday May 03, 2021 @12:58PM (#27027543)
Financing (credit cards, furniture rentals, payday loans, diversity business loans) has not made poor people in rich countries rich.

https://m.youtube.com/watch?v=4LSuZGlqL34

African attitudes and behavior are very different from those of people whose nations have developed technologically in the past 200 years. No amount of loans will teach people how to mix concrete or organize an effective workforce. These are things that people either decide to do on their own or have imposed upon them by a colonial power.

I oppose ensnaring third world nations in debt. Either give them free stuff or let them figure civilization out on their own. "We can help them while making money at the same time" is always a veil for exploitation.

Re:Why are there so many unfinished buildings in Africa? by LaMarseillaise on Monday May 03, 2021 @02:05PM (#27028539)
> Financing (credit cards, furniture rentals, payday loans, diversity business loans) has not made poor people in rich countries rich.

Predatory loans are not the whole picture. Stock markets and business loans have made many poor people rich. I know some of them.

> No amount of loans will teach people how to mix concrete or organize an effective workforce.

Student loans can help here.

> I oppose ensnaring third world nations in debt.

The developed world does not have a monopoly on finance. Credit unions and microcredit are possible anywhere, but nevertheless depend on trust and stability.

Re:Why are there so many unfinished buildings in Africa? by baybal2 on Monday May 03, 2021 @01:51PM (#27028314)
> From your description, it seems like the issue is an ineffective legal system

There are African countries with well functioning legal system.

Widespread fraud is, you know, happens much across the rich world, and victims are usually much the same demographic.

Re:Why are there so many unfinished buildings in Africa? by LaMarseillaise on Monday May 03, 2021 @02:14PM (#27028676)
No doubt fraud is an issue everywhere. The question is whether it incurs cost on the fraudster. You mentioned people who took the money for construction and disappeared - why were they not sued or prosecuted?
Re:Why are there so many unfinished buildings in Africa? by baybal2 on Monday May 03, 2021 @02:36PM (#27028958)
Fraudsters can equally well disappear in USA or UK, and they certainly do so.

You can't prosecute a man going missing without a trace.

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Re:Why are there so many unfinished buildings in Africa? by imtringued on Monday May 03, 2021 @11:19AM (#27026196)
Actually, what those African nations need is a tiny enclave, a special economic zone, that has the rule of law and is kept stable at all costs where western nations can invest as much as they please, while leaving the rest of the country alone so that the rest of the country can catch up to the standard of living of that enclave, without western influence.
Re:Why are there so many unfinished buildings in Africa? by 300africans on Monday May 03, 2021 @11:55AM (#27026683)
Can you give examples of where this has been tried before. Also, this sounds like how we were colonized the first time. Giving enclaves to the French and the British that became staging posts for full colonization
Re:Why are there so many unfinished buildings in Africa? by wyattpeak on Wednesday May 05, 2021 @02:06AM (#27046724)
I'm a bit late, but I suspect the poster is referring to a theoretical city type called a charter city[1], much pushed by the economist Paul Romer.

None have been built, although both Madagascar and Honduras briefly considered the idea. The theory is presumably inspired by Hong Kong, but obviously Hong Kong wasn't set up with any such purpose.

[1] https://en.wikipedia.org/wiki/Charter_city_(economic_develop...

Re:Why are there so many unfinished buildings in Africa? by lainga on Monday May 03, 2021 @12:06PM (#27026816)
Well, if you see any pasty Englishmen with pith helmets and Martini-Henries show up at the dock, just turn them away. Britain's power projection isn't what it once was.
Re:Why are there so many unfinished buildings in Africa? by neither_color on Monday May 03, 2021 @02:00PM (#27028467)
Sounds like he's describing the Chinese model of development. https://en.wikipedia.org/wiki/Special_economic_zones_of_Chin...
Re:Why are there so many unfinished buildings in Africa? by mdorazio on Monday May 03, 2021 @12:03PM (#27026774)
I think Hong Kong is a pretty good example.
Re:Why are there so many unfinished buildings in Africa? by zappo2938 on Monday May 03, 2021 @09:47AM (#27025015)
> exploitation by industrialized nations

We hear a lot about how China invests billions in Africa building highways and such in order to have influence. I have a conspiracy theory based on stories I heard. It would be nice to know if is true or not. What Americans don't realize is that the Gambino crime family didn't just dissolve, they went to Africa, and they bought rights to natural resources such as coal. They have since the early 2000s become the brokers between natural resources in Africa and 3rd party buyers around the world and their business is violence.

Re:Why are there so many unfinished buildings in Africa? by angrais on Monday May 03, 2021 @11:03AM (#27025973)
You do realise Africa is massive and that a family of white, American-Italians wouldn't have much chance causing influence (even with violence) in certain African countries? Not to forget the difference in languages across those countries.

So my question is: why do you think the Gambino family moved there and what evidence do you have for your claims?

Re:Why are there so many unfinished buildings in Africa? by zappo2938 on Monday May 03, 2021 @06:41PM (#27031806)
If I had evidence I sure wouldn't post it from an account with potentially identifiable information. Let's say a New York Times investigative reporter for curiosity did a piece on where the associates of the Gambino family are today, don't be surprised if some of them own legitimate businesses mining and shipping natural resources from Africa. There are lists of associates and they have legitimate businesses that pay taxes. There really aren't secrets here. The activity is above board. So what if they are bribing people in Africa? The FBI doesn't care. The CIA doesn't care. Also, I'm careful about saying 'white, American-Italians' because there are likely dark complexion Sicilian Italians involved too. They are connected to North Africa, a hop skip and a jump away, however, the stories I've heard concern East and Central Africa.
Re:Why are there so many unfinished buildings in Africa? by sthnblllII on Monday May 03, 2021 @02:37PM (#27028967)
King Leopold of Belgium and 200 white advisors ruled all of the African Congo with a mostly black army that they assembled.

I can't find anything about the Gambino family having assets in Africa.

Re:Why are there so many unfinished buildings in Africa? by angrais on Monday May 03, 2021 @03:40PM (#27029749)
Great point, though I suspect being a king and having a whole country and army support your colonisation of a country is outside the power of most people.

Edit: I get your point now that the king paid locals to help cause "crimes against humanity" ... I'd say given modern media practices that a mafia don doing something similar would be most difficult.

This thread reminds me of the Netflix TV show Lillyhammer on a smaller scale.

Re:Why are there so many unfinished buildings in Africa? by sthnblllII on Thursday May 06, 2021 @11:02PM (#27071613)
>the king paid locals to help cause "crimes against humanity"

That's actually not true. King Leopold forbade his soldiers from using indigenous fighting and torture practices, but some divisions with black commanders continued the practice against the king's orders. Leopold was criticized in the Belgian press for allowing black officers to command as those atrocities were viewed as a foreseeable outcome of such policy.

Re:Why are there so many unfinished buildings in Africa? by bradleykingz on Monday May 03, 2021 @12:25PM (#27027042)
> They have since the early 2000s become the brokers between natural resources in Africa

Africa is a big place.

Where exactly in Africa? If you have some sources, this sounds like an interesting read.