Supposed crazy returns in transport businesses in Uganda, Botwana and Angola

heretolearn_2

For the example you give of a 60 seater coach making 4 runs per day the profit of £480/day alone would require the fare to be £1 per person and the coach to be full on the outward and return journey. That is not counting any other costs.

82% of the population of Uganda earn less than $1 a day , roughly 64p at the moment. As pointed out above you need to make profit of £1 per passenger per journey with a full coach to achieve the profit mentioned. So the fare is going to be, what, £1.20? More than twice most people's daily earnings. Anyone who could afford your coach would have their own car!

I'm sure these businesses are extremely profitable if you own and run them from the country involved, where a total profit of say £20 a day lets you live in luxury! As you say, most locals don't have the capital to set it up. We have the capital, but the returns are worth nothing really in the UK.

I know a few Africans who live in UK and run businesses 'back home', but they invest the profits in property or for family etc there , where it can go a very long way, they don't bother bringing the money over here because in the UK it's peanuts. Run a successful business there and you can buy yourself a nice house outright in a few years. Do you want a house in Africa?

bulle

If you know that the business requires 'kickbacks' to local officials you should also understand that since July 2011 the UK Bribery Act has been in place. This is a very strong piece of law and it covers all UK businesses no matter which country they operate in. If you are found to be bribing foreign public officials you could get up to 10 years in jail and unlimited fines.

Be aware that it isn't necessarily up to the UK law agencies to find out about your business, all it takes is a local competitor who knows about this particular UK law to report you for investigation.

martinthebandit

Why, that almost sounds too good to be true .............


When my new Nigerian friend comes through with the 250 million dollars he has promised, count me in

pop_gun

bulle wrote: »

If you know that the business requires 'kickbacks' to local officials you should also understand that since July 2011 the UK Bribery Act has been in place. This is a very strong piece of law and it covers all UK businesses no matter which country they operate in. If you are found to be bribing foreign public officials you could get up to 10 years in jail and unlimited fines.

Be aware that it isn't necessarily up to the UK law agencies to find out about your business, all it takes is a local competitor who knows about this particular UK law to report you for investigation.

Q: When is a bribe, not a bribe?

A: When it's a donation.

heretolearn_2

yeah 'cos everyone else just puts 'bribes' down in their accounts

eca_

heretolearn wrote: »

For the example you give of a 60 seater coach making 4 runs per day the profit of £480/day alone would require the fare to be £1 per person and the coach to be full on the outward and return journey. That is not counting any other costs.

82% of the population of Uganda earn less than $1 a day , roughly 64p at the moment. As pointed out above you need to make profit of £1 per passenger per journey with a full coach to achieve the profit mentioned. So the fare is going to be, what, £1.20? More than twice most people's daily earnings. Anyone who could afford your coach would have their own car!

I'm sure these businesses are extremely profitable if you own and run them from the country involved, where a total profit of say £20 a day lets you live in luxury! As you say, most locals don't have the capital to set it up. We have the capital, but the returns are worth nothing really in the UK.

I know a few Africans who live in UK and run businesses 'back home', but they invest the profits in property or for family etc there , where it can go a very long way, they don't bother bringing the money over here because in the UK it's peanuts. Run a successful business there and you can buy yourself a nice house outright in a few years. Do you want a house in Africa?

Well put. :T

Acc72

mervyn11 wrote: »

Ok I'm in...................

Me too !

OP - just let me know where I should send my details to (name, address, NI number, bank account details etc.)

TheSandman

http://www.bbc.co.uk/news/business-16815605

You've all missed the point here.


Kit it out with strengthened steel and bullet-proof glass and ferry ex-pats around between the airport, gated communities and the drilling sites.

If you're a Brit you'll probably be trusted enough to get a contract to drive a company's staff for a fat contract.

I personally know someone who gets driven everywhere when he's in Baku at what is probably quite extortionate rates in order to keep him safe.

I also have some pictures of company 'security' for some work that went on in Georgia; quite literally marine wannabes with combats, webbing and AK-47s.

Personally I'd say go for it but only if you can be there, running a business in Africa without actually being there to control things will see you get turned upside down like a piggy bank.

pooch

pop_gun wrote: »

Q: When is a bribe, not a bribe?

A: When it's a donation.

Don't think the person who got my late wife's kidney thinks of it as a bribe. :cool:

heretolearn_2

Sandman, yes there are some high value contracts along those lines. But a service running 60 people 8 times a day (4 x 2 way journeys)? Clearly just intended as a locals commuter service.