[quote=murchr]
Quote:Ethiopian Revenue and Customs Authority has summarily removed approximately Ksh 240 Million (US$2.4m) from Atlas and its Ethiopian subsidiary, TEAP Glass PLC bank account with the Development Bank of Ethiopia over claims of Tax Evasion.
Lipeni ushuru
http://kenyanwallstreet....over-tax-evasion-claims[/quote]
Poor AIA/ADSS. They got whacked for someone else's problems. Dealing in African countries is tough.
Don't buy someone's company but buy 'clean' assets or start afresh. What happened with AIA worries me coz KK has a substantial investment in Ethiopia and can't exit. The likes of Shell knew they can't deal with despotic regimes like Ethiopia.
Foreign firms in Ethiopia are forced to buy low-yielding government bonds while the Birr keeps on depreciating. As is, the Birr is artificially kept high but $ are hard to find.
Selling an asset might bring in cash for KK but they have to place the (depreciating) Birr in a bank. This doesn't help them much.
A friend whose firm has business interests in Ethiopia told me the reality is very different from the PR. He recommends Ethiopia as a tourist destination but not as an investment destination.
Hotel Ethiopia: "We are programmed to receive. You can check-out any time you like but you can never leave! " [From Hotel California]
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett