George Soros, the Hungarian-American business mogul, has become one of the most aggressive foreign investors in African economies over the past few decades. While many predict a decrease in investment due to regional instabilities and resonating Ebola fears, Soros says African investment remains “one of the few bright spots on the gloomy global economic horizon.” As one of the richest people in the world with a proven track record of investment profits, Soros might just know what he’s talking about.
Sources: UHY.com, CNBC.com, HeliosInvestment.com, ProfitConfidential.com, Biography.com, OpenSocietyFoundations.org
He’s the 27th richest person in the world, according to Forbes Magazine, the seventh wealthiest American, and holds the title of World’s Richest Hedge Fund Manager.
Born into a Jewish family, Soros was forced into hiding at age 13 after Nazis occupied Hungary in March 1944. After learning of his impending deportation, Soros’s father arranged for him to pose as the godson of an employee of the Hungarian Ministry. Soros emigrated to England in 1947 and studied at the London School of Economics.
No one ideology owns the truth, according to Karl Popper’s critique of totalitarianism. Soros was deeply influenced by Popper’s book, “The Open Society and its Enemies.” The idea that societies can only succeed when they operate freely and openly with respect for individual human rights have influenced Soros most of his life.
After graduating from the London School of Economics in 1951, Soros had difficulty finding work with merchant banks in London. In 1954, he finally landed a job with Singer and Friedlander, whose managing director at the time was a fellow Hungarian.
Nearly two decades after getting his start in finance, Soros set up his own hedge fund, Soros Fund Management, in 1969. Decades later, it remains one of the most profitable in the industry, averaging a 20 percent n annual rate of return. Soros Fund Management is chief advisor for the Quantum Group of Funds, which focuses on international investments, and as of 2011, manages only Soros family money after returning all outside investors’ money to conform with the Dodd-Frank reform act.
LeapFrog investments is a private equity firm that raised over $400 million in 2014 to invest in Africa and Asia in a socially responsible manner. The group now controls a minority stake in Africa Finance Business Mauritius, Resolution Insurance in Kenya, and has operations in Ghana and Zambia as well.
Recently, Soros got involved in financing Ethiopia’s dollar-based bond to increase energy production for agriculture, power generation, and transportation. This project includes the Millennium Dam, a 6,000-megawatt hydroelectricity initiative.
In 1979, Soros began to fund scholarships to allow black students in apartheid South Africa to attend the University of Cape Town. In 1993, he established the Open Society Foundation for South Africa, aimed at supporting the country’s transition to democracy.
Open Society Foundations were initially established to help countries transition to democratic governance. They have since expanded their mission with a strong influence in southern Africa. The foundations focus on four core programs: Promoting public- and private-sector accountability; advancing civil society and socioeconomic rights; protecting the free flow of information and freedom of expression; and strengthening justice and equality.
Source: OpenSocietyFoundations.org
Soros pledged $50 million in 2006 for a project led by economist Jeffrey Sachs for educational, agricultural, and medical aid to impoverished African villages. Some were surprised, given that Soros’s previous philanthropic work focused on fostering democracy. Soros said the roots of poverty resided in bad governance.
Along with Madeline Albright and Jacob Rothschild, Soros recently invested $350 million in Helios Towers Africa to enable mobile access to Africans. The initial investment is meant to buy mobile phone masts outside Nigeria and boost penetration rates beyond 45 percent.
According to the McKinsey Global Institute, the rate of return on foreign investment in Africa is higher than any other developing region. As Western countries continue to grapple with rising debt accumulated throughout the financial crisis of the late 2000s, Soros is one of the investors leading the way in Africa, banking on a rising middle class, expanding economies, and vast potential.