10 Facts About Africa

10 Facts About Africa Africa is an amazing continent. From its start as the heart of humanity, it is now home to more than a billion people. It has jungles and desert and even a glacier. It extends into all four hemispheres. It is a place of superlatives. Find out more from these 10 essential facts about the continent: 1) The East African Rift zone, which divides the Somalian and Nubian tectonic plates, is the location of several important discoveries of human ancestors by anthropologists. The active spreading rift valley is thought to be the heartland of humanity, where much human evolution likely took place millions of years ago. The discovery of the partial skeleton of Lucy in 1974 in Ethiopia sparked major research in the region. 2) If you divide the planet into seven continents, then Africa is the worlds second largest continent, covering about 11,677,239 square miles (30,244,049 square km). 3) Africa is located to the south of Europe and southwest of Asia. It is connected to Asia via the Sinai Peninsula in northeastern Egypt. The peninsula itself is usually considered part of Asia, with the Suez Canal and the Gulf of Suez as the dividing line between Asia and Africa. African countries are usually divided into two world regions. The countries of northern Africa, bordering the Mediterranean Sea, are usually considered part of a region called North Africa and the Middle East, while countries south of the northernmost countries of Africa are usually considered part of the region called Sub-Saharan Africa. In the Gulf of Guinea off the coast of western Africa lies the intersection of the equator and the Prime Meridian. As the Prime Meridian is an artificial line, this point has no true significance. 4) Africa is also the second most populous continent on Earth, with about 1.256 billion people (2017). Africas population is growing faster than Asias population (4.5 billion), but Africa will not catch up to Asias population in the foreseeable future. For an example of Africas growth, Nigeria, currently, the worlds seventh most populous country on Earth, is expected to become the third most populous country by 2050. Africa is expected to grow to 2.5 billion people by 2050. Nine of the 10 highest total fertility rates on Earth are African countries, with Niger topping the list (6.49 births per woman as of 2017). 5) In addition to its high population growth rate, Africa also has the worlds lowest life expectancies. The average life expectancy for citizens of Africa is 61 years for males and 64 years for females, though its a little lower in some regions of Africa and higher in northern Africa (closer to the global average). The continent is home to the worlds highest rates of HIV/AIDS; more than two-thirds of all people infected are in Africa. Better treatment for HIV/AIDS is directly related to average life expectancy rising back to 1990 levels in southern Africa by 2020. 6) With the possible exceptions of Ethiopia and Liberia, all of Africa was colonized by non-African countries. The United Kingdom, France, Belgium, Spain, Italy, Germany, and Portugal all claimed to rule parts of Africa without the consent of the local population. In 1884–1885 the Berlin Conference was held among these powers to divide up the continent among the non-African powers. Over the following decades, and especially after World War II, African countries gradually regained their independence with the borders as established by the colonial powers. These borders, established without regard to local cultures, have caused numerous problems in Africa. Today, only a few islands and a very small territory on the Moroccan coast (which belongs to Spain) remain as territories of non-African countries. 7) With 196 independent countries on Earth, Africa is home to more than a quarter of these countries. There are 54 fully independent countries on mainland Africa and its surrounding islands. All 54 countries are members of the United Nations. Every country is a member of the African Union, including Morocco, which rejoined in 2017. 8) Africa is fairly non-urbanized. Only 43 percent of Africas population lives in urban areas. Africa is home to only a few megacities with a population greater than 10 million: Cairo, Egypt; Lagos, Nigeria; and Kinshasa, Democratic Republic of the Congo. The Cairo and Lagos urban areas are around 20 million, and Kinshasa has about 13 million residents. 9) Mt. Kilimanjaro is the highest point in Africa. Located in Tanzania near the Kenyan border, this dormant volcano rises to an elevation of 19,341 feet (5,895 meters). Mt. Kilimanjaro is the location of Africas only glacier, although scientists predict that the ice on the top of Mt. Kilimanjaro will disappear by the 2030s due to global warming. 10) While the Sahara Desert is not the largest nor the driest desert on Earth, it is the most notable. The desert covers about 25 percent of the land of Africa.

Understanding Term Spreads or Interest Rate Spreads

Understanding Term Spreads or Interest Rate Spreads Term spreads, also known as interest rate spreads, represent the difference between the long-term interest rates and short-term interest rates on debt instruments such as bonds. In order to understand the significance of term spreads, we must first understand bonds. Bonds and Term Spreads Term spreads are most often used in the comparison and evaluation of two bonds, which are fixed interest financial assets issued by governments, companies, public utilities, and other large entities. Bonds are fixed-income securities through which an investor essentially loans the bond issuer capital for a  defined period of time in exchange for a promise to repay the original note amount plus interest. Owners of these bonds become debt holders or creditors of the issuing entity as entities issue bonds as a means of raising capital or financing a special project. Individual bonds are typically issued at par, which is generally at $100 or $1,000 face value. This constitutes the bond principal. When bonds are issued, they are issued with a stated interest rate or coupon that reflects the prevailing interest rate environment at the time. This coupon reflects the interest that the issuing entity is obligated to pay to its bondholders in addition to repayment of the bond principal or the original amount borrowed at maturity. Like any loan or debt instrument, bonds are also issued with maturity dates or the date at which full repayment to the bondholder is contractually required.​​​ Market Prices and Bond Valuation There are several factors at play when it comes to the valuation of a bond. The issuing companys credit rating, for instance, can influence the market price of a bond. The higher the credit rating of the issuing entity, the less risky the investment and perhaps the more valuable the bond. Other factors that can influence a bonds market price include the maturity date or the length of time remaining until expiration. Last, and perhaps the most important factor as it relates to term spreads is the coupon rate, particularly as it compares to the general interest rate environment at the time. Interest Rates, Term Spreads, and Yield Curves Given that fixed-rate coupon bonds will pay the same percentage of the face value, the market price of the bond will vary over time depending on the current interest rate environment and how the coupon compares to newer and older issued bonds that may carry a higher or lower coupon. For instance, a bond issued in a high-interest rate environment with a high coupon will become more valuable on the market if interest rates were to fall and new bonds coupons reflect the lower interest rate environment. This is where term spreads come in as a means of comparison.   The term spread measures the difference between the coupons, or interest rates, of two bonds with different maturities or expiration dates. This difference is also known as the slope of the bond yield curve, which is a graph that plots the interest rates of bonds of equal quality, but different maturity dates at a specified point in time. Not only is the shape of the yield curve important to economists as a predictor of future interest rate changes, but its slope is also a point of interest as the greater the slope of the curve, the greater the term spread (gap between short- and long-term interest rates). If the term spread is positive, the long-term rates are higher than the short-term rates at that point in time and the spread is said to be normal. Whereas a negative term spread indicates that the yield curve is inverted and the short-term rates are higher than the long-term rates.