Search This Blog

Sunday, May 20, 2012

Stamp Investment Tip: Senegambia and Niger 1903 Navigation and Commerce (Scott #1-13)

Senegambia and Niger was a short-lived administrative unit of the French possessions in Africa, formed in 1902 and reorganized in 1904 into Upper Senegal and Niger. These territories later became the Republics of Burkina Faso and Mali.

In 1903, the French issued the first stamps for the colony, a set of thirteen utilizing the Navigation and Commerce design (Scott #1-13). Scott '12 prices the unused set at $287.15, and while quantities issued are not known, it's likely that they were in the low ten thousands.

The set should do well as a conservative investment, based on the growth of interest in stamps of the French Colonies/Possessions. It has the added attraction of being an possible emerging market play, should a stamp collecting community develop within Burkina Faso or Mali.

Burkina Faso is a poor nation, with a population of about 16 million. Agriculture represents 32% of its gross domestic product and occupies 80% of the working population. Highly variable rainfall, poor soils, lack of adequate communications and other infrastructure, a low literacy rate, and a stagnant economy are all longstanding problems of this landlocked country. Many Burkinabé migrate to neighboring countries for work, and their remittances provide a substantial contribution to the balance of payments. The government is attempting to improve the economy by developing its mineral resources. Annual GDP growth has averaged just under 5% over the past 5 years.

Mali, another poor and landlocked African country, has a population of about 15 million. As with Burkina Faso, about 80% of the population is employed in agriculture, which is vulnerable to periodic droughts. The country has significant mineral reserves, which it is developing. These include: gold,kaolin, salt, phosphate, and limestone. Annual GDP growth has averaged just over 4% over the past 5 years.

No comments:

Post a Comment