The Empowerment
 
 

  In addition to the request of other African countries to participate in the fund, pension funds within the United States, endowments, institutional investors and philanthropic organizations will be approached for investment funds.

The strategy is for co-investment by U.S. entities and African countries into a private equity fund. In each instance where an investment is made by an African country, double the principal amount invested by that country will then be invested back into the originating country. This format allows for some of the leveraged funds to be invested outside of the investing country.

Given the current climate in Africa through legislation and in the U.S. through the Millennium Challenge Account’s policy of rewarding wealth building in the previously disadvantaged population of African countries, there is an opportunity to move swiftly in a direction that will change the economic landscape of African Countries and cities within the United States such as New Orleans, that have heavy minority populations. To promote additional investments in the emerging markets within the United States, MGW will establish or purchase, a Community Development Financial Institute.

In the 1970’s when minorities were given an opportunity to participate in the economic mainstream through set-aside programs in the United States, three essential elements were missing. They were access to capital, bonding and training. It was rare that lending institutions, perhaps due to regulations, provided adequate funds for a prospective new minority business to be successful. Additionally, there were very few if any, venture capital firms that would invest in minority companies. The most damaging game was for an entrepreneur to request the funds needed but receive loans adequate to only sustain them for a few months. In many instances, the entrepreneur would go bankrupt. The knowledge gains through those failed attempts at entrepreneurship, in most instances, were lost forever, due to the stigma associated with failure and the credit marks entered with the credit reporting agencies.

It is our plan to learn from the mistakes of the past. To provide training, adequate working capital and management involvement in the day-to-day activities of the companies funded through this equity fund. MGW intends to focus on companies where there is broad-based ownership and multiple key personnel in areas of responsibility. The community equity approach is one approach to be employed. For example: A laundry owned by those who reside within a three-mile radius would be owned by people who live within that geographic zone. This provides no cost marketing to that population, as well as employment opportunities from within the ownership group increasing the probability of funds being reinvested within that community. A second example of the community equity approach is through the ownership by the faith community, Hispanics and Blacks within geographic regions of the United States, serving members of those groups nationwide. If this combined group owns auto dealerships with multiple franchises, the member needing a Chevrolet product in Orlando can purchase a vehicle from the Chevrolet dealer owned by the group in Charlotte and have the vehicle drop shipped to him or her in Orlando. This allows the dealership owned by the group, through varied financial arrangements, to sell the car at a competitive price and ultimately produce the net effect of an even lower price resulting from dealer hold-back and lower marketing cost.

MGW has secured involvement of churches representing Church Of God In Christ, A.M.E. Zion, Church of God and The National Baptist Convention. A conservative estimate of these groups’ number more than 11 million individuals within The United States... This faith-based group, when coupled with the broader faith-based community provides for great internal support. Additionally, this group can capitalize on the African Growth and Opportunity Act, which has been extended recently.

MGW’s chairman has met with representatives of African Countries and non-minority churches to secure consent to work as a team to change the economic participation of Blacks in Africa and minorities in America.

This collective plan speaks to housing development, Black and Hispanic economic empowerment and small, micro or medium enterprise growth. Additionally, financial services, infrastructure development and primary and secondary mortgage financing have been identified as areas of need. Our focus will be on specific strategies that can emanate from a private equity fund and a self-contained market segment.

Our proposal and discussions with interested investors have indicated a willingness to support a new private equity fund that bolsters the effort to secure a strong position in the economic mainstream by Africans and Hispanics and Blacks in America.
 
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