• Chinese, Nigerian presidents satisfied with bilateral ties • Pang Yuliang Acquired German Parchim Airport

Alerts: Turning Pennies into dollars: (OTCBB CYBD), (OTCBB MOBT), (OTCBB AITX), (OTCBB ISHM), (OTCBB VSPC), (OTCBB AMKT).
2,475 words

22 February 2007

M2 Presswire

MTPW

English

(c) 2007 M2 Communications, Ltd. All Rights Reserved.
RealPennies.com ALERTS: reporting on dollar volume movers.
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Cyber Digital, Inc. (OTCBB CYBD), Mountain 1st Bank & Trust Company (OTCBB MOBT), AirTrax, Inc. (OTCBB AITX), InfoSearch Media, Inc. (OTCBB ISHM), VIASPACE, Inc. (OTCBB VSPC), and Ace Marketing & Promotions, Inc. (OTCBB AMKT).
To enroll your publicly-traded company in our exclusive public awareness programs, please email [e-mail] or call 1.800.940.6559 .
Ace Marketing & Promotions, Inc. (OTCBB AMKT) Tuesday's market went down 7.07% to $1.71 per share, with a total of 34,900 shares traded. The company announced that it has entered into a Letter of Intent to acquire the customer base and other intangible assets of Bright Ideas Marketing & Promotions, a Florida-based distributor of advertising specialties and promotional products. With annual revenues of approximately $1 million, Bright Ideas has been targeted by Ace as its first acquisition in the $17.85 billion promotional products industry. At such time as the acquisition is completed, we will operate a sales office out of Bright Ideas' Jupiter, Florida location. All order processing, tracking, billing and other operations will be handled out of the Ace Marketing corporate headquarters in Valley Stream, N.Y.
Ace Marketing & Promotions, Inc. distributes advertising specialties and promotional products with logos to corporations, schools, universities, financial institutions, hospitals, and not-for-profit organizations in the United States. Its promotional products include advertising specialties; business gifts, awards, and commemoratives; incentives and awards; and premiums. The company distributes wearables, such as t-shirts, golf shirts, and hats; glassware, such as mugs and drinking glasses; writing instruments, such as pens, markers, and highlighters; and bags, such as tote bags, gift bags, and brief cases. Ace Marketing was founded in 1998 and is based in Valley Stream, New York.
VIASPACE, Inc. (OTCBB VSPC) Tuesday's market went up 2.76% to $0.5650 per share, with a total of 197,119 shares traded. The company reported on the emergence of fuel cell technology for portable electronics and the strategy of its Direct Methanol Fuel Cell Corporation subsidiary to capture a significant share of the large projected market for direct methanol fuel cell cartridges. VIASPACE subsidiary Direct Methanol Fuel Cell Corporation (DMFCC) is engaged in developing, obtaining safety certification, manufacturing and distributing disposable methanol fuel cartridges to provide the energy source for laptop computers, cell phones and other portable electronic devices powered by direct methanol fuel cells. DMFCC expects to profit from the growing market for micro fuel cells for portable electronic devices by providing the global fuel cartridge manufacturing, distribution and sales infrastructure the industry requires. The company also offers patent protection for OEMs and manufacturers of direct methanol and other liquid hydrocarbon fuel cells. Methanol fuel cells are expected to gain a substantial market share because they offer operating time two to three times longer than current lithium ion batteries, can support the increased energy demands of additional wireless and television features, are environmentally friendly, and may be instantaneously recharged by simply replacing the disposable fuel cartridge. According to analysts at Freedonia Group commercial demand for fuel cell products and services will increase nearly sevenfold to $2.6 billion in 2009. By 2014, those revenues are expected to reach $13.6 billion. The Darnell Group, ABI Research and other analysts predict an estimated 14 to 22% of notebook computers and 2.5% of mobile phones and other devices will be powered by fuel cells in 2012. Using industry projections for the number of computers and mobile phones with an average usage of 2 to 4 cartridges per month leads to a projection of 2 to 6 billion cartridges sold annually. With an estimated retail price of $3 for phone cartridges and $5 for computers, the DMFCC addressable fuel cartridge market has the potential to reach $8 to 24 billion annually.
VIASPACE, Inc. develops space and defense technologies from NASA and the department of defense into hardware and software products in the United States. It offers various products that address homeland security and public safety issues, supply chain management and asset tracking concerns, and deficiencies in delivering portable power to laptops, cell phones, and other electronic devices. The company provides disposable fuel cartridges and intellectual property protection for manufacturers of direct methanol and other liquid hydrocarbon fuel cells; and develops products and services based on inference and sensor data fusion technology, which combines data, observations, and inferences derived from multiple sources and sensors to generate decision-support information. It also develops mass spectrometry technology that improves the application of mass spectrometry for industrial process control and environmental monitoring, and produces detection systems for homeland security. In addition, the company holds patents and various patent applications in the areas of interactive radio technology. VIASPACE offers its services in the areas of energy/fuel cells, microelectronics, sensors, homeland security and public safety, information, and computational technology. The company was founded in 1998 and is headquartered in Altadena, California.
InfoSearch Media, Inc. (OTCBB ISHM) Tuesday's market went down 8.00% to $0.23 per share, with a total of 77,100 shares traded. The company announced it has expanded its core product line to include searchable online video content production services. InfoSearch:Video, the Company's new search-targeted online video product provides the same customer benefits as the Company's written, text-based product line, including improved organic search engine rankings, increased, quality site traffic and brand recognition. "We see strong customer demand for searchable video content and believe there is a very significant, unaddressed market for video content in between expensive high-end video production and user-generated content," said George Lichter, president and CEO, InfoSearch Media, "By leveraging our existing proprietary technology, systems and processes, we will offer an efficient, comprehensive end-to-end, search-targeted text-to-video solution to clients at an affordable price point. InfoSearch's mission is to develop the information people search for in any media. It's a logical extension of that mission to address high-growth markets like video and rich media, and to target significant opportunities in categories including magazine and newspaper and online publishers, healthcare, home improvement and employment."
InfoSearch Media, Inc. develops content-based search marketing solutions that support nonpaid search marketing initiatives of its clients. Nonpaid search results are those results that the search engines find on the worldwide Web as opposed to those listings for which companies pay for placement. The company?s solutions include Contentlogic, which offers its clients the ability to purchase content created by its team of copywriters and ArticleInsider that target clients desiring to increase traffic to the client's existing Web site by providing to such client qualified leads. The company was incorporated in 2000 and is headquartered in Marina Del Rey, California.
AirTrax, Inc. (OTCBB AITX) Tuesday's market went up 5.88% to $0.72 per share, with a total of 3,800 shares traded. The company announced that the Company has completed a private placement offering for aggregate gross proceeds of $3,219,000. Full details of the financing can be found in a Current Report on Form 8-K filed today and available at www.sec.gov . Under the terms of the financing, the Company has issued investors $3,734,040 in secured debentures which are convertible into shares of common stock, at a price of $0.45 per share. The debentures mature on February 20, 2009 and the Company may redeem the debentures, at its discretion, at a price equal to 150% of the principal amount balance, subject to certain equity conditions being met. Investors were also issued warrants to purchase shares of common stock at exercise prices ranging from $.54 to $1.25 per share.
AirTrax, Inc. engages in the development of the omni-directional wheel and related components for forklift and other material handling applications. Its omni-directional technology offers vehicle mobility; and navigation and enables a vehicle to move forward, laterally, diagonally, or rotate within its own footprint. The company primarily assembles and sells Sidewinder ATX-3000 omni-directional lift truck. Its related components include the unique shaped wheels, motors, and frames. The company was incorporated in 1997 and is based in Blackwood, New Jersey.
Mountain 1st Bank & Trust Company (OTCBB MOBT) Tuesday's market stayed the same at $23.50 per share, with a total of 328 shares traded. The company reported that earnings for its fiscal 2006 increased by over 350% as compared with the fiscal 2005. For the year ended December 31, 2006, the Bank reported net income of $2.8 million as compared with a loss of $1.1 million during 2005. Pre-provision, pre-tax income for 2006 increased significantly to $6.7 million with provision for loan losses totaling $2.4 million and income tax expense amounting to $1.5 million, resulting in net income of $2.8 million or $0.51 per diluted share. This compares with pre-provision, pre-tax income during fiscal 2005 of $188 thousand, provision for loan losses of $1.8 million and income tax benefit of $553 thousand equating to a net loss of $1.1 million or $0.25 per diluted share. It should be noted that 2005 results included a non-recurring equity compensation charge of $2.2 million net of tax effect.
Mountain 1st Bank & Trust Company (bank) provides personal and business banking products and services to small and medium-sized businesses and individuals in Buncombe, Haywood, Henderson, Polk, and Transylvania Counties in North Carolina. Its deposit products include checking account, savings account, NOW account, money market account, demand and time deposits, certificates of deposit, and individual retirement accounts. The bank?s lending portfolio includes residential mortgage loans, real estate loans, construction loans, consumer loans, consumer installment loans, commercial and industrial loans, and home equity lines of credit. It also offers safe deposit boxes, credit cards, cash management services, online banking, and merchant card services. As of December 31, 2005, Mountain 1st Bank had eight branch offices in North Carolina. The bank was incorporated in 2004 and is headquartered in Hendersonville, North Carolina.
Cyber Digital, Inc. (OTCBB CYBD) Tuesday's market went up 16.67% to $0.14 per share, with a total of 40,500 shares traded. The company announced that CEO, J.C. Chatpar, will be featured in an exclusive interview with Market News First host, Steve Kanaval, Thursday, Feb. 22, 2007, at 11:00 a.m. CST on www.mn1.com . Cyber Digital is a software design and development company focusing on advanced digital voice and broadband data switches. During the conversation, Chatpar will highlight the recent disclosure of Company financials as well as its engagement with Mercantile Ascendency as its Investor Relations firm. Chatpar will also talk about Cyber Digital's ability to compete in a growing industry and its strategy to maintain a position of success in the digital voice and broadband data market. If you miss the interview, check back next week to hear a replay by logging on to www.mn1.com and clicking on the Podcast & Downloads icon.
Cyber Digital, Inc. engages in the design, development, manufacture, and marketing of digital switching, Internet, and networking systems that enable simultaneous communication of voice and data to a large number of users. It offers a range of distributed digital switching systems for digital telecommunications applications and networks, which includes Cyber Distributed Central Office (CDCO) designed to provide digital voice communications to subscribers in densely populated urban areas; and Cyber Tandem Exchange, an intercity exchange for long distance voice and data trunk services, as well as a regional trunk exchange connecting to various local CDCO exchanges. In addition, the company offers Cyber Rural Exchange, a small distributed Class 5 central office exchange, primarily intended for rural, remote, or community telephone applications and Cyber Switch Exchange, a digital switching system designed for use as a private branch exchange for offices, universities, hospitals, and other large organizations. Its range of broadband Internet protocol (IP) systems include Cyber Business Internet Gateway, a IP frame relay and private line based gateway; Cyber Internet Access Network, a distribution router/soft-switch that permits several business users to simultaneously access the Internet at a fixed committed bandwidth rate; Cyber Firewall series IPSec firewall appliance that offers simple-do-it-yourself installation software for business-to-business e-commerce secure access and virtual private network applications; and Cyber Web Server and Cyber Domain Name Server. The company sells its products in the United States, India, China, Brazil, Russia, and Nigeria. Cyber Digital was founded in 1982 by Jawahar C. Chatpar. The company is headquartered in Hauppauge, New York.
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Document MTPW000020070222e32m002s1

While Ace Marketing & Promotions, Inc. Enter Into Letter of Intent, Others Announce New Technology, Expansion, Complete Private Placement, Report Financial Results, and Announce CEO Appearances
2,949 words

22 February 2007

M2 Presswire

MTPW

English

(c) 2007 M2 Communications, Ltd. All Rights Reserved.
Dallas, Texas - StockGuru Pre-Market Updates for Thursday include Cyber Digital, Inc. (OTCBB CYBD), Mountain 1st Bank & Trust Company (OTCBB MOBT), AirTrax, Inc. (OTCBB AITX), InfoSearch Media, Inc. (OTCBB ISHM), VIASPACE, Inc. (OTCBB VSPC), and Ace Marketing & Promotions, Inc. (OTCBB AMKT). StockGuru Pre-Market Updates feature companies with significant moves in either volume or price in the past two trading sessions. In our update we analyze recent news about the companies featured and detail the movement in the stock.
If you would like to feature your publicly traded company in our alerts or on StockGuru.com, email [e-mail] or call [phone].
Ace Marketing & Promotions, Inc. (OTCBB AMKT) Tuesday's market went down 7.07% to $1.71 per share, with a total of 34,900 shares traded. The company announced that it has entered into a Letter of Intent to acquire the customer base and other intangible assets of Bright Ideas Marketing & Promotions, a Florida-based distributor of advertising specialties and promotional products. With annual revenues of approximately $1 million, Bright Ideas has been targeted by Ace as its first acquisition in the $17.85 billion promotional products industry. At such time as the acquisition is completed, we will operate a sales office out of Bright Ideas' Jupiter, Florida location. All order processing, tracking, billing and other operations will be handled out of the Ace Marketing corporate headquarters in Valley Stream, N.Y.
Ace Marketing & Promotions, Inc. distributes advertising specialties and promotional products with logos to corporations, schools, universities, financial institutions, hospitals, and not-for-profit organizations in the United States. Its promotional products include advertising specialties; business gifts, awards, and commemoratives; incentives and awards; and premiums. The company distributes wearables, such as t-shirts, golf shirts, and hats; glassware, such as mugs and drinking glasses; writing instruments, such as pens, markers, and highlighters; and bags, such as tote bags, gift bags, and brief cases. Ace Marketing was founded in 1998 and is based in Valley Stream, New York.
For a quote and the latest news on this company, please visit: http://www.stockguru.com/profiles/AMKT.php .
VIASPACE, Inc. (OTCBB VSPC) Tuesday's market went up 2.76% to $0.5650 per share, with a total of 197,119 shares traded. The company reported on the emergence of fuel cell technology for portable electronics and the strategy of its Direct Methanol Fuel Cell Corporation subsidiary to capture a significant share of the large projected market for direct methanol fuel cell cartridges. VIASPACE subsidiary Direct Methanol Fuel Cell Corporation (DMFCC) is engaged in developing, obtaining safety certification, manufacturing and distributing disposable methanol fuel cartridges to provide the energy source for laptop computers, cell phones and other portable electronic devices powered by direct methanol fuel cells. DMFCC expects to profit from the growing market for micro fuel cells for portable electronic devices by providing the global fuel cartridge manufacturing, distribution and sales infrastructure the industry requires. The company also offers patent protection for OEMs and manufacturers of direct methanol and other liquid hydrocarbon fuel cells. Methanol fuel cells are expected to gain a substantial market share because they offer operating time two to three times longer than current lithium ion batteries, can support the increased energy demands of additional wireless and television features, are environmentally friendly, and may be instantaneously recharged by simply replacing the disposable fuel cartridge. According to analysts at Freedonia Group commercial demand for fuel cell products and services will increase nearly sevenfold to $2.6 billion in 2009. By 2014, those revenues are expected to reach $13.6 billion. The Darnell Group, ABI Research and other analysts predict an estimated 14 to 22% of notebook computers and 2.5% of mobile phones and other devices will be powered by fuel cells in 2012. Using industry projections for the number of computers and mobile phones with an average usage of 2 to 4 cartridges per month leads to a projection of 2 to 6 billion cartridges sold annually. With an estimated retail price of $3 for phone cartridges and $5 for computers, the DMFCC addressable fuel cartridge market has the potential to reach $8 to 24 billion annually.
VIASPACE, Inc. develops space and defense technologies from NASA and the department of defense into hardware and software products in the United States. It offers various products that address homeland security and public safety issues, supply chain management and asset tracking concerns, and deficiencies in delivering portable power to laptops, cell phones, and other electronic devices. The company provides disposable fuel cartridges and intellectual property protection for manufacturers of direct methanol and other liquid hydrocarbon fuel cells; and develops products and services based on inference and sensor data fusion technology, which combines data, observations, and inferences derived from multiple sources and sensors to generate decision-support information. It also develops mass spectrometry technology that improves the application of mass spectrometry for industrial process control and environmental monitoring, and produces detection systems for homeland security. In addition, the company holds patents and various patent applications in the areas of interactive radio technology. VIASPACE offers its services in the areas of energy/fuel cells, microelectronics, sensors, homeland security and public safety, information, and computational technology. The company was founded in 1998 and is headquartered in Altadena, California.
For a quote and the latest news on this company, please visit: http://www.stockguru.com/profiles/VSPC.php .
InfoSearch Media, Inc. (OTCBB ISHM) Tuesday's market went down 8.00% to $0.23 per share, with a total of 77,100 shares traded. The company announced it has expanded its core product line to include searchable online video content production services. InfoSearch:Video, the Company's new search-targeted online video product provides the same customer benefits as the Company's written, text-based product line, including improved organic search engine rankings, increased, quality site traffic and brand recognition. "We see strong customer demand for searchable video content and believe there is a very significant, unaddressed market for video content in between expensive high-end video production and user-generated content," said George Lichter, president and CEO, InfoSearch Media, "By leveraging our existing proprietary technology, systems and processes, we will offer an efficient, comprehensive end-to-end, search-targeted text-to-video solution to clients at an affordable price point. InfoSearch's mission is to develop the information people search for in any media. It's a logical extension of that mission to address high-growth markets like video and rich media, and to target significant opportunities in categories including magazine and newspaper and online publishers, healthcare, home improvement and employment."
InfoSearch Media, Inc. develops content-based search marketing solutions that support nonpaid search marketing initiatives of its clients. Nonpaid search results are those results that the search engines find on the worldwide Web as opposed to those listings for which companies pay for placement. The company?s solutions include Contentlogic, which offers its clients the ability to purchase content created by its team of copywriters and ArticleInsider that target clients desiring to increase traffic to the client's existing Web site by providing to such client qualified leads. The company was incorporated in 2000 and is headquartered in Marina Del Rey, California.
For a quote and the latest news on this company, please visit: http://www.stockguru.com/profiles/ISHM.php .
AirTrax, Inc. (OTCBB AITX) Tuesday's market went up 5.88% to $0.72 per share, with a total of 3,800 shares traded. The company announced that the Company has completed a private placement offering for aggregate gross proceeds of $3,219,000. Full details of the financing can be found in a Current Report on Form 8-K filed today and available at www.sec.gov . Under the terms of the financing, the Company has issued investors $3,734,040 in secured debentures which are convertible into shares of common stock, at a price of $0.45 per share. The debentures mature on February 20, 2009 and the Company may redeem the debentures, at its discretion, at a price equal to 150% of the principal amount balance, subject to certain equity conditions being met. Investors were also issued warrants to purchase shares of common stock at exercise prices ranging from $.54 to $1.25 per share.
AirTrax, Inc. engages in the development of the omni-directional wheel and related components for forklift and other material handling applications. Its omni-directional technology offers vehicle mobility; and navigation and enables a vehicle to move forward, laterally, diagonally, or rotate within its own footprint. The company primarily assembles and sells Sidewinder ATX-3000 omni-directional lift truck. Its related components include the unique shaped wheels, motors, and frames. The company was incorporated in 1997 and is based in Blackwood, New Jersey.
For a quote and the latest news on this company, please visit: http://www.stockguru.com/profiles/AITX.php .
Mountain 1st Bank & Trust Company (OTCBB MOBT) Tuesday's market stayed the same at $23.50 per share, with a total of 328 shares traded. The company reported that earnings for its fiscal 2006 increased by over 350% as compared with the fiscal 2005. For the year ended December 31, 2006, the Bank reported net income of $2.8 million as compared with a loss of $1.1 million during 2005. Pre-provision, pre-tax income for 2006 increased significantly to $6.7 million with provision for loan losses totaling $2.4 million and income tax expense amounting to $1.5 million, resulting in net income of $2.8 million or $0.51 per diluted share. This compares with pre-provision, pre-tax income during fiscal 2005 of $188 thousand, provision for loan losses of $1.8 million and income tax benefit of $553 thousand equating to a net loss of $1.1 million or $0.25 per diluted share. It should be noted that 2005 results included a non-recurring equity compensation charge of $2.2 million net of tax effect.
Mountain 1st Bank & Trust Company (bank) provides personal and business banking products and services to small and medium-sized businesses and individuals in Buncombe, Haywood, Henderson, Polk, and Transylvania Counties in North Carolina. Its deposit products include checking account, savings account, NOW account, money market account, demand and time deposits, certificates of deposit, and individual retirement accounts. The bank?s lending portfolio includes residential mortgage loans, real estate loans, construction loans, consumer loans, consumer installment loans, commercial and industrial loans, and home equity lines of credit. It also offers safe deposit boxes, credit cards, cash management services, online banking, and merchant card services. As of December 31, 2005, Mountain 1st Bank had eight branch offices in North Carolina. The bank was incorporated in 2004 and is headquartered in Hendersonville, North Carolina.
For a quote and the latest news on this company, please visit: http://www.stockguru.com/profiles/MOBT.php .
Cyber Digital, Inc. (OTCBB CYBD) Tuesday's market went up 16.67% to $0.14 per share, with a total of 40,500 shares traded. The company announced that CEO, J.C. Chatpar, will be featured in an exclusive interview with Market News First host, Steve Kanaval, Thursday, Feb. 22, 2007, at 11:00 a.m. CST on www.mn1.com . Cyber Digital is a software design and development company focusing on advanced digital voice and broadband data switches. During the conversation, Chatpar will highlight the recent disclosure of Company financials as well as its engagement with Mercantile Ascendency as its Investor Relations firm. Chatpar will also talk about Cyber Digital's ability to compete in a growing industry and its strategy to maintain a position of success in the digital voice and broadband data market. If you miss the interview, check back next week to hear a replay by logging on to www.mn1.com and clicking on the Podcast & Downloads icon.
Cyber Digital, Inc. engages in the design, development, manufacture, and marketing of digital switching, Internet, and networking systems that enable simultaneous communication of voice and data to a large number of users. It offers a range of distributed digital switching systems for digital telecommunications applications and networks, which includes Cyber Distributed Central Office (CDCO) designed to provide digital voice communications to subscribers in densely populated urban areas; and Cyber Tandem Exchange, an intercity exchange for long distance voice and data trunk services, as well as a regional trunk exchange connecting to various local CDCO exchanges. In addition, the company offers Cyber Rural Exchange, a small distributed Class 5 central office exchange, primarily intended for rural, remote, or community telephone applications and Cyber Switch Exchange, a digital switching system designed for use as a private branch exchange for offices, universities, hospitals, and other large organizations. Its range of broadband Internet protocol (IP) systems include Cyber Business Internet Gateway, a IP frame relay and private line based gateway; Cyber Internet Access Network, a distribution router/soft-switch that permits several business users to simultaneously access the Internet at a fixed committed bandwidth rate; Cyber Firewall series IPSec firewall appliance that offers simple-do-it-yourself installation software for business-to-business e-commerce secure access and virtual private network applications; and Cyber Web Server and Cyber Domain Name Server. The company sells its products in the United States, India, China, Brazil, Russia, and Nigeria. Cyber Digital was founded in 1982 by Jawahar C. Chatpar. The company is headquartered in Hauppauge, New York.
For a quote and the latest news on this company, please visit: http://www.stockguru.com/profiles/CYBD.php .
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Document MTPW000020070222e32m000ek

Foreign Investment for Poverty Reduction
by Abimbola Akosile

2,402 words

21 February 2007

08:14 AM

All Africa

AFNWS

English

(c) 2007 AllAfrica, All Rights Reserved
Lagos, Feb 21, 2007 (This Day/All Africa Global Media via COMTEX) --
Reports claim global FDI inflows rose substantially in 2005, with the strong growth leading to an increase in the inflows to developed countries. Rising global demand for commodities was reflected in the steep increase in natural resource-related FDI, although the services sector continued to be the major recipient of FDI.
Africa received record high foreign direct investment (FDI) inflows in 2005 of $31 billion, but this was mostly concentrated in a few countries and industries, according to a new World Investment Report 2006, put together by the United Nations Conference on Trade and Development (UNCTAD).
FDI continued to be a major source of investment for Africa as its share in gross fixed capital formation increased to 19% in 2005. However, the region's share of global FDI remained low at about 3% in 2005.
Africa's top ten recipient countries - South Africa, Egypt, Nigeria, Morocco, Sudan, Equatorial Guinea, the Democratic Republic of Congo, Algeria, Tunisia and Chad, in that order, accounted for close to 86% of the regional FDI total.
In eight of these countries, FDI inflows exceeded $1 billion (more than $3 billion for Egypt, Nigeria and South Africa in particular). At the other extreme, FDI inflows remained below $100 million in 34 African countries. These are mostly least developed countries (LDCs), including oil-producing Angola, which witnessed a drastic decline in FDI receipts in 2005.
FDI inflows to the region were concentrated in a few industries, such as oil, gas, and mining. Six oil producing countries (Algeria, Chad, Egypt, Equatorial Guinea, Nigeria and Sudan, in descending order of the value of FDI) accounted for about 48% of inflows to the region.
Among developing regions, the highest growth rate in inward FDI was seen in West Asia (85%), followed closely by Africa (78%), both regions experiencing record inflows of $34 billion and $31 billion respectively. FDI inflows in the 50 least developed countries also recorded a historic high of $10 billion.
FDI outflows from Africa in 2005 remained small and originated from a few countries. Six home countries (Egypt, Liberia, Libyan Arab Jamahiriya, Morocco, Nigeria and South Africa) accounted for over 80% of total outflows.
FDI In-flow in Nigeria
Positive developments have occurred in Nigeria since May 29, 1999 when democracy replaced military governance. This has resulted in a number of spirited moves to attract investors - local and foreign - into the country.
President Olusegun Obasanjo in a bid to achieve this end embarked on a globe trotting mission that saw him interacting with other fellow Presidents and the business community of different countries, which yielded some results in debt relief (although the gains are yet to translate to economic liberty for the nation's teeming poor).
Foreign Direct Investment plays an extraordinary and growing role in global business. It can provide a firm with new markets and marketing channels, cheaper production facilities and access to new technology, products, skills and financing.
For a host country or the foreign firm which receives the investment, it can provide a source of new technologies, capital, processes, products, organisational technologies and management skills, and as such can provide a strong impetus to economic development.
Unveiling FDI
Foreign direct investment is defined as a company from one country making a physical investment into building a factory in another nation. Direct investment in buildings, machinery and equipment is in contrast with making a portfolio investment, which is considered an indirect investment.
In recent years, given rapid growth and change in global investment patterns, the definition has been broadened to include the acquisition of a lasting management interest in a company or enterprise outside the investing firm's home country.
As such, it may take many forms, such as a direct acquisition of a foreign firm, construction of a facility, or investment in a joint venture or strategic alliance with a local firm with attendant input of technology, licensing of intellectual property. In the past decade, FDI has come to play a major role in the internationalisation of business.
Reacting to changes in technology, growing liberalisation of the national regulatory framework governing investment in enterprises and changes in capital markets profound changes have occurred in the size, scope and methods of FDI.
Some proponents of foreign investment point out that the exchange of investment flows benefits both the home country and the host country; although in the host developing countries, the ripple effect is felt largely in employment creation and empowerment.
There are two categories of FDI flow: portfolio and equity. But the greater focus is on equity investment because portfolio investment represents having money which is not recommended for interests in the sub-region.
FDI, according to experts, brings four deliverables in every nation. First is the finance to bridge the savings gap; management skill, foreign technology and avenue for exports. Foreign investments depend on three conditions: political and macro-economic stability; trade openness and competitive market.
New information technology systems, decline in global communication costs have made management of foreign investments far easier than in the past. Change in trade and investment policies and the regulatory environment globally in the past decade, including trade policy and tariff liberalisation, easing of restrictions on foreign investment and acquisition in many nations and the deregulation and privatisation of many industries, has probably been the most significant catalyst for FDI's expanded role.
Direct Investment Benefits
Foreign Direct Investment is not only a transfer of ownership from domestic to foreign residents but also a mechanism that makes it possible for foreign investors to exercise management and control over host country firms - that is, it is a corporate governance mechanism.
Nigeria has one of the highest rates of investment returns in the emerging markets, presently estimated to be 30 percent. International flows of capital reduce the risk faced by owners of capital by allowing them to diversify their lending and investment
Second, the global integration of capital markets can contribute to the spread of best practices in corporate governance, accounting rules, and legal traditions. Third, the global mobility of capital limits the ability of governments to pursue bad policies.
Four, FDI allows for the transfer of technology - particularly in the form of new varieties of capital inputs - that cannot be achieved through financial investments or trade in goods and services.
FDI can also promote competition in the domestic input market. Five, recipients of FDI often gain employee training in the course of operating the new businesses, which contributes to human development in the host country. Lastly, profits generated by FDI contribute to corporate tax revenues in the host country.
Plum Tele-communications
Before 2001 when the first GSM service was launched by the then Econet Wireless, now Celtel, telephony was predominantly for the very affluent at the time. De-regulation of the sector has however placed Nigeria amongst the countries with the fastest growing telecommunication sector.
Reports state that the telecommunications industry, currently at the growth rate of 32% was the fastest growing sector in the Nigerian economy in 2006. In 2005 the sector recorded a growth rate of 30%.
Since the much-awaited liberalisation process began, the Nigerian Communications Commission (NCC), the regulatory body in the communications sector, has promoted creative innovation and competition among the operators in the country.
By 2006, fifth anniversary of GSM revolution in Nigeria, the number of telephone lines stood at 28 million representing an increase of 48% over the figure recorded in late 2005. The current figure is closer to 32 million lines.
Despite the growth rate recorded in the last two years, the huge population and market is yet to be saturated, which was why an Arab firm, Mubadala Development Company chose to invest $400m into the lucrative sector, for a licence as the fifth mobile telephony operator.
Natural Blessings
Nigeria is blessed with a rich diversity of fin-fish and shellfish resources. Investing in the harvesting of these natural resources would result in the generation of employment to several thousands of Nigerians engaged in processing activities, both small and large scale (i.e. smoking and canning), which can earn the country substantial foreign exchange from its export.
This is in addition to creating employment through storage, transportation, marketing, facilities maintenance and food businesses.
Food security, rural development and poverty alleviation are inter-woven. Fish, according to reports, contributes 40 per cent of total dietary protein consumption in Nigeria. The country earns appreciable foreign exchange from exportation fisheries products. Between 1994 and 2000, Nigeria earned $56.0 million from shrimps and prawns exports, which increased to $65 million in 2005.
Beyond these, Nigeria is reputed to harbour more than 34 mineral resources scattered in all the states of the federation. Among them are tantalite, kaoline, mica, barite, bitumen, diatomite and a number of them.
Recently President Olusegun Obasanjo stated that in view of the enormous mineral endowment in the country, the Federal Government has taken substantial steps to build investor confidence and attract mining capital.
Infrastructure
Infrastructure covers many dimensions, ranging from roads, ports, railways and telecommunication systems to institutional development (e.g. accounting, legal services, etc.).
Poor infrastructure can be seen, however, as both an obstacle and an opportunity for foreign investment. For the majority of low-income countries, it is often cited as one of the major constraints. But foreign investors also point to the potential for attracting significant FDI if host governments permit more substantial foreign participation in the infrastructure sector.
Recent evidence seems to indicate that, although tele-communications and airlines have attracted FDI flows, other more basic infrastructure such as road-building remains unattractive, reflecting both the low returns and high political risks of such investments.