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Investing in Water: The Most Profitable Investment of the 21st Century

Posted by addisethiopia on September 15, 2014

OrangeWaterInvestment U Advisory Panelist and IPO expert Louis Basenese constantly monitors the world’s fastest-growing industries. Below, Louis details the fundamental forces at work driving one of today’s hottest growth opportunities…

Right now, there’s one commodity that sells at gas stations for almost twice the price of gasoline – and U.S. consumers never complain about it.

In fact, this precious resource we often take for granted is in critical shortage in more than 80 countries worldwide. And it will forever be in high demand, as every living being’s survival depends on it.

Of course, the commodity I’m talking about is water. And the effects of its shortage are of major concern…

Nearly 40% of the world’s population does not have access to clean water. And this problem is not going away anytime soon. It’s actually getting worse…

Less than 2% of the world’s water store is fresh water – to quench the thirst of 6 billion people. And according to the International Food Policy Research Institute, by 2020, an additional 2 billion people will be competing for this shrinking resource.

But the problem isn’t 14 years from now; the problem is now. Below, we’ll review why investing in water is turning out to be the most profitable investment of the 21st century. But first, let’s look at the problem…

At this moment, clean, safe water is scarce across the globe. Fortunately, several players in the private sector are working hard to solve this problem. And for investors, this industry provides perhaps the most profitable opportunities of the 21st century.

Two Catalysts: Global Warming And Population Growth

Water is the single-largest health problem in the entire world. According to, 90% of the 5,000 daily child deaths are related to some sort of diarrhea-related disease.

And torrid population growth is not only stressing water use, it’s causing massive pollution and depleting the largest aquifers on the planet. Unstable politics of water-poor communities, states and countries is triggering heated tensions – and in some cases, all-out wars. And global warming is drying up lakes, eroding shorelines and depleting rivers.

Consider the following:

  • Within 50 years, more than half of the global population will be living with water shortages. They will affect 4 billion people by 2050.
  • The Dead Sea has dropped more than 66 feet in the past 100 years and is now losing about 3 feet each year.
  • Lake Chad in Africa is now 1/20 the size it was 35 years ago.
  • Water-borne diseases kill one child every 8 seconds.

According to the National Academy of Sciences, Mother Earth is now the hottest it’s been for at least 400 years.

More specifically, over the last 100 years the surface temperature of the Earth has risen 1 degree Fahrenheit. And while that doesn’t sound like too much, it’s enough to wreak havoc on eco-systems, erode shorelines, dry aquifers and cause massive water shortages all over the world.

According to the IPCC, if global warming is not stopped, the earth could heat up another 3 to 10 degrees Fahrenheit by the end of this century. Time magazine points out that, “Mount Kilimanjaro has lost 75% of its ice cap” Moreover, it could completely lose ALL of its ice by 2020.

The result is less inland snow, a reduced amount of fresh river water, drying aquifers, and intense strain on any ecosystem relying on irrigation. With entire regions becoming unsuitable for crop production, both food and water will need to be transported into the water-deprived nations, dramatically hindering their ability to contribute to world GDP.

And the world’s fast-growing population isn’t helping the situation

From the beginning of time through the middle of the 1900s, the global population grew at a steady – but not alarming – rate. Now, it’s multiplying exponentially.

There are just over 6.1 billion people on the planet right now, but by 2050, census officials predict there could be as many as 9 billion people on Earth. And more demand for water simply means that the already under-supplied resource will become scarcer in the years to come.

The World Bank points out that global demand for water is doubling every 21 years. And, at present, 1 billion people on the planet don’t have access to safe water. “In Latin America alone, about 15% of the population – roughly 76 million people – lack safe water, and 116 million don’t have access to sanitation services.”

So how do we solve this water crisis?

Opportunity in Water Investing Is “Dripping” From This Shortage

The answer lies in the private sector – companies working night and day to solve the world’s water woes. The global water industry has been heating up for several decades, and the story’s certainly not new.

Many savvy investors have already recognized that investing in water stocks is simply the investment of a lifetime. Some have already locked in huge profits over the past few years. Here are just a few examples of water investment successes:

Investors who put $10,000 dollars in Consolidated Water (Nasdaq: CWCO) in 2000 banked a cool $71,061.43 by February of 2006.

Water has to be moved, as well and the lucky few who invested $10,000 in the IPO of American Commercial Lines (Nasdaq: ACLI) in the early part of 2005 would have made more than 310% by May of 2006.

And these profits are just the beginning of what could be the greatest investment of the 21st century.

Think of it this way: Bottled water sells for roughly $1.50 a liter at the gas station right now, while gasoline sells for around $3 a gallon. With 3.78 liters in a gallon, bottled water would be selling for $5.67 a gallon – almost twice the price of gasoline. And water companies don’t have to build expensive oil wells and refining plants that are toxic and environmentally unfriendly. The overall cost to bring water to market is, in many cases, lower.

In the end, investing in water stocks is a smart play all around for those seeking constant, stable returns. Global Summit Management (SGM) reports that from 2000 to 2005, water utility stocks returned 134.57%, while the S&P 500 clocked in at a mere 2.74%.

And those who invested in water stocks for a 10-year period were even happier. The stocks banked 446.01% from 1995 to 2005, versus 9.06% in the S&P.

Conclusion on Water

The world needs safe, clean drinking water and acceptable sanitation levels. Demand is outstripping supply. And several smart companies are solving the problem, which bodes well for investing in water for long-term gains.

Good investing,



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No Denial on the Nile: Egypt Threatens Ethiopian Dams

Posted by addisethiopia on June 14, 2013

CryingRIn a humiliating example of self-inflicted electronic bugging, last week a live broadcast television microphone in Egyptian President Muhammed Morsi’s Cairo office caught the president and Egypt’s most senior political leaders plotting sneak attacks on the upstream Nile’s biggest dam builder, Ethiopia.

No denial on the Nile. When an audience of millions overhears pious Egyptian Islamists and well-heeled Egyptian liberals mull classic covert warfare options — such as having Ethiopian rebels sabotage Ethiopia’s new Blue Nile dams or deploying shady political agents to agitate in Addis Ababa — the usual diplomatic salve, plausible denial, isn’t an option.

In point of fact, the Egyptian government’s initial embarrassment has given way to hard-edged declaration. Egyptians will fight Ethiopia for every drop of Nile River water!

For politically fractured and factionalized Egypt, war talk is a unifying tonic and a distraction from Egypt’s endless miseries. Morsi’s Muslim Brotherhood government has simply failed to address the enormous economic and social problems afflicting Egypt.

Solving embedded societal ills requires a national unity of purpose. Morsi has been a national divider. His sharia-based constitution delighted Muslim Brothers but dismayed Egypt’s liberals. His attempt to invoke emergency rule (reminiscent of Hosni Mubarak) splintered Egypt’s Arab Spring revolutionary front. Muslim moderates joined with secular liberals and demanded he resign.

But Nile water sustains all Egyptians. The trite adage, “Egypt is the Nile,” is true. From Aswan north to Alexandria on the Mediterranean Sea, the green band bordering the great river is home to 90 percent of Egypt’s population.

Morsi needs a route to national reconciliation. The Nile Water War (temporarily) solves Egypt’s broken puzzle: Us Downstream Egyptians versus Them Upstream Ethiopians.

But Ethiopia’s dams did not suddenly appear. For two decades every nation in east Africa has known Ethiopia intended to build several large hydro-electric dams and become Africa’s biggest power exporter.

Ethiopia has been waging a steady diplomatic campaign asserting its rights to Nile water. Ethiopia’s case is as passionately essential as Egypt’s. One word defines the basic case: famine. Water in reservoirs is a hedge against famines induced by drought. Electrical power sums Ethiopia’s expanded case.

Ethiopia contends the traditional division of Nile water distribution rights are based on an antiquated colonial artifact that unfairly favors Egypt. The 1929 Nile Waters agreement (engineered by Great Britain) gave Anglo-Egyptian Egypt 90 percent of the Nile’s annual flow. Egypt could also veto upstream water projects. In 1957 Ethiopia announced it would utilize Nile water resources within its territory. The Blue Nile and its Ethiopian tributaries generate 75 to 85 percent of the Nile’s annual flow. The White Nile, from Uganda, Kenya and Tanzania, generates the rest.

A war between east Africa’s two most powerful nations would be a disaster for both. That’s so obvious I’ll wager even Mohammed Morsi knows it. The war options Egyptian leaders vetted included buying new long-range strike aircraft. Egypt’s air force can handle border conflicts, but hitting the Grand Ethiopian Renaissance Dam (GERD) is a long-range operation. Sudan separates Egypt from Ethiopia. One parliamentarian thought credible strike aircraft might give Ethiopia political pause. Ethiopia’s already credible air and ground forces should give Egyptian sword rattlers pause.

In April 2011 reported that Ethiopian diplomats had proposed an interesting win-win solution. Ethiopia would sell Egypt a partnership interest in its dams. Egypt would have ownership input in the operations. Ownership guaranteed Egypt reliable hydro-electric power. Egypt would also split the profits from selling electricity throughout Africa. Hey, Cairo. For the dams to generate electricity, water must flown downstream.

Ethiopia’s proposal at least creates the possibility of a win-win political deal. In time cool heads in Cairo should accept it.


[Isaiah 19:3-7]

The Egyptians will panic, and I will confuse their strategy. They will seek guidance from the idols and from the spirits of the dead, from the pits used to conjure up underworld spirits, and from the magicians.

I will hand Egypt over to a harsh master; a powerful king will rule over them,” says the sovereign master, the LORD who commands armies.

The water of the sea will be dried up, and the river will dry up and be empty.

The canals will stink; the streams of Egypt will trickle and then dry up; the bulrushes and reeds will decay, along with the plants by the mouth of the river. All the cultivated land near the river will turn to dust and be blown away.


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Egyptian Ignorance: The Root and Stem of All Evil

Posted by addisethiopia on June 6, 2013

IgnoranTalkThe world is our teacher, and we are all on this planet to learn life lessons and live accordingly. But, it seems some populations are not capable of learning as they stubbornly refuse to grow up by exhibiting willful ignorance and bullying behaviors.

The original Egyptians are not Arabs, but the dominant Egyptians of today, just like Libyans, Tunisians, Algerians and Moroccans, are a transplanted Arab population who occupied African lands. Arabs don’t belong in Africa! Historically speaking, Arabs brought more pain and suffering to the African continent than the Europeans. The Arabs have been enslaving Africans since prehistoric times, and the slave trade in Saudi Arabia wasn’t abolished until the 1960s. An underground traffic in slaves continues to this day, particularly in Sudan, Mauritania, Sudan, Saudi Arabia and Egypt. African men were often killed and boys were castrated. Many of them died as a result. The women were used and discarded. They disappeared and another generation, fresh from Africa, replaced them as though they had never been. The atrocities continue to this days.

Egypt – which exists at the mercy of Ethiopia because of the river Nile – repeatedly demonstrates its ungratefulness by insulting Ethiopia and treating Ethiopian refugees in a cruel and inhuman way. Please read this heartbreaking report. Even the Ottoman Turks who occupied Northern Africa, the Middle East and the Balkan didn’t force their culture and language on the native populations. After 500 years of Turkish presence, the native populations of those countries were spared to speak the Turkish language. On the other hand, the Arabs force on others their unculture, religion and language. Even Ghaddafi acknowledged Arab atrocities against Africans two years before he was brutally killed by the same Arabs I am talking about:

I regret the behavior of the Arabs… They brought African children to North Africa, they made them slaves, they sold them like animals, and they took them as slaves and traded them in a shameful way. I regret and I am ashamed when we remember these practices. I apologize for this.”

Three days ago, Egyptian Politicians meeting with Egypt’s president proposed hostile acts against Ethiopia, including backing rebels and carrying out sabotage, to stop it from building a massive dam on the Nile River upstream.

Yesterday, Dr. Amr Hamzawy, a political science professor said the following, in an interview with the Doha-based media channel Al-Arabiya.

Egypt should not even consider entering into negotiations with Ethiopia until the Ethiopians halt all construction on the dam,, “Egypt should not be forced to sacrifice even one drop of water. Ethiopia must respect Egypt’s interests.”

When I study the history of Egypt since the arrival of Arab Muslims in the country during the 7thcentury, when I think of how much Misery Egyptian leaders brought to the Ethiopian nation the past 1000 years, when I observe the current generation of Arab Egyptian leaders displaying so much hatred and ignorance towards the country and people of Ethiopia, I am forced to ask myself, what has changed with the mentality and behavior of Arab and arabized people since Samuel Johnson characterized them in his book, ‘Rasselas‘ back in the year 1759? Nothing!

I am personally quite convinced that if Egyptians and Ethiopians switched countries and Egypt had become the source of the river Nile, Egyptians would have exterminated Ethiopians long time ago by spewing their usual abracadabra venom on the waters of the Nile

Let’s ask the Egyptians what they would do if the source of the Nile came from Egypt


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Africa‘s Huge Hidden Ground Water Resources

Posted by addisethiopia on April 21, 2012


Another reason for Ethiopia to tell Egypt to drill a well in the desert, or digg down into its pockets to pay for the precious Nile Water


Solutions to resolve the world’s water crisis may lay hidden underground. More than half the world’s population already depends on groundwater that is pumped from the pore spaces of rock formations, known as aquifers, which lie hidden below the Earth’s surface.

Scientists now say that Africa is sitting on a vast reservoir of groundwater.

Researchers from the British Geological Survey and University College London argue that the total volume of water in aquifers underground is 100 times the amount found on the surface.

The team have produced the most detailed map yet of the scale and potential of this hidden resource.


Continue reading…


Quantitative maps of groundwater resources in Africa




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The Water Footprint of Humanity

Posted by addisethiopia on February 15, 2012

A fascinating study from the University of Twente (Netherlands) , UNESCO-IHE 

by Arjen Hoekstra and Mesfin Mekonnen


Since the Dublin Conference in 1992, there is consensus that the river basin is the appropriate unit for analyzing freshwater availability and use. An underlying hypothesis of the research programme at the University of Twente is that it is becoming increasingly important to put freshwater issues in a global context. Although other authors have already argued thus, we add a new dimension to the argument. Local water depletion and pollution are often closely tied to the structure of the global economy. With increasing trade between nations and continents, water is more frequently used to produce exported goods. International trade in commodities implies long-distance transfers of water in virtual form, where virtual water is understood as the volume of water that has been used to produce a commodity and that is thus virtually embedded in it. Knowledge about the virtual-water flows entering and leaving a country can cast a completely new light on the actual water scarcity of a country. For example, Jordan imports about 5 to 7 billion m3 of virtual water per year, which is in sharp contrast with the 1 billion m3 of water withdrawn annually from domestic water sources. This means that people in Jordan apparently survive owing to the import of water-intensive commodities from elsewhere, for example the USA.

A second hypothesis of the research programme is that it becomes increasingly relevant to consider the linkages between consumption of people and impacts on freshwater systems. This can improve our understanding of the processes that drive changes imposed on freshwater systems and help to develop policies of wise water governance. In 2002 Hoekstra introduced the water-footprint concept as an indicator that maps the impact of human consumption on global freshwater resources. The water footprint of an individual or community is defined as the total volume of freshwater that is used to produce the goods and services consumed by the individual or community. A water footprint can be calculated for any well-defined group of consumers, including a family, business, village, city, province, state or nation. The water footprint of a nation for example shows water use related to consumption within a nation. Traditionally, national water use has been measured as the total freshwater withdrawal for the various sectors of the economy. By contrast, the water footprint shows not only freshwater use within the country considered, but also freshwater use outside the country’s borders. It refers to all forms of freshwater use that contribute to the production of goods and services consumed by the inhabitants of a certain country. The water footprint of the Dutch community, for example, also refers to the use of water for rice production in Thailand (insofar as the rice is exported to the Netherlands for consumption there). Conversely, the water footprint of a nation excludes water that is used within the national territory for producing commodities for export, which are consumed elsewhere.

Objective of the programme

The objective of the research programme is to examine the critical links between water management and international trade and between consumption and freshwater impacts. Questions posed are: Can trade enhance global water use efficiency, or does it simply shift the environmental burden to a distant location? Does import of water in virtual form offer a solution to water-scarce nations or does this result is undesired ‘water dependency’? How can quantitative analysis of expected or desirable trends in international or inter-regional virtual water flows contribute to water policy development at different levels of spatial scale? How can water footprint accounting become part of the regular practice of governments and businesses and how can it feed into better water policy making? How can water security of communities can be guaranteed by a combination of policies to bring along changes at local, basin and global level? How will the growing demand for bio-energy increase the global water footprint of humanity? Questions like these and others are being addressed in various sub-projects, involving MSc and PhD students from various parts of the world.

Continue reading…


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