ECONOMIC CHANGE THROUGH DISRUPTIVE THINKING

Where should the Global North invest its dormant trillions? Zero and negative interest rates don’t lie. They show that the Global North has run out of investment opportunities within developed countries and in emerging markets.

China was the world’s economic locomotive for the better part of the last 25 years. As China has slowed down investment and is focusing on consumption-led economic growth, the entire world is feeling the impact. The world is desperately seeking another economic locomotive. Africa can and should be that locomotive.

Shelter Afrique, Africa’s housing finance institution, estimated in 2014 that African urban areas will need 565 million additional housing units by 2030. That is almost 40 million units a year. Again, as with all things African today, building 40 million homes a year is daunting.

It takes bold, innovative thinking to reposition Africa as the world’s greatest investment opportunity. It requires a combination of theory, practice, and stubborn determination to get the job done. This is not a time for business as usual. This is a time for execution and results. This is WARP time.

Building a City a Year in sub-Saharan African countries and meeting the affordable housing needs of the continent will drive global economic growth. We just have to make it happen.

This photo, “Uganda 006” is copyright (c) 2008 Matt Lucht and made available under CC By 2.0

EXPORTING INFLATION

The most valuable resource the Global South has to offer the Global North is INFLATION. The Global South should export inflation to the Global North. Imagine if Africa could sell 1% in annual inflation to the holders of $40 trillion. Africa would get more than enough money for its infrastructure needs while investors would earn $400 billion a year. It is a fantastic trade, much more lucrative than selling goods.

To make this trade Africa has to organize its housing and urbanization opportunity, and package it for easy investment from the Global North. This is a central theme of WARP’s work.

We are developing templates to make investments in urban development palatable to large institutional investors in the Global North.

WARP’s work is largely about converting uncertainty into risk, transforming seemingly uncertain infrastructure development targets into plain vanilla investment opportunities. We like to think we are on the vanguard of something truly special.

Join us.