RE: Political Risk4 Jul 2018 21:34
Just reading HotCopper bgs forum
This from a poster who seems to know more about risk factors in the area
A bit on the sovereign risk in Mali since I have seen many self proclaimed experts claiming the country is unstable or highly prone to sovereign/political risk. First thing to understand is that countries in the developing world tend to hold less centralization and unified political sovereignty. Mali, for example, has two distinct political/security/sovereign areas (this is very generalized but will serve the purpose here). North Mali and South Mali. The North is highly prone to risk. It is unstable and hosts several terrorist groups roaming freely between Niger, Mali, and, to a lesser extent, Algeria. South Mali, however, is an entirely different political area. Its risk and stability classifications are much higher than the North and on par with the general sentiment of West Africa. BGS's project is located in Southern Mali ( I am sure you are aware of this fact by now). The South exhibits its own risks, of course, but this is normal in any developing country: private capital, investment, and technical sophistication is largely misunderstood in many of the poorer developing countries. When international media cover a terrorist attack in Mali, they do not specify its location, which is always certainly located in the North. They never mention it is about 700 km north of BGS's facilities and any major road BGS will utilize in the future for transportation. It is very complex, and no body could predict the future. But the current political risk level in (South) Mali is arguably better than any other time since the country's independence from the French.
Personally- There is risk in everything and I'm happy to invest in the area
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