In a project of this type, there are a number of risks for the investor to consider. However, the rationale for the fund is also to address these risks.
We have identified the following risks:
- Currently the obvious risk is that of poaching. Poaching is rampant in South Africa, rhinos may get killed and people may get hurt in the process. This is a clear and present danger and should not be under estimated.
- There is the (small) risk the project at some stage in the future may be nationalized by the government.
- There is the risk that not enough tourists will come and visit to make the project economically feasible in the long run.
- The tourism industry in South Africa may decline if social injustice is not controlled or if tensions present in society become more outwardly apparent.
- The South African rand has been devaluating considerably over the years and the economy of the country is not as strong as it could be. This will negatively affect the value of the shares in the project.
However, at Shared Universe, we believe the greatest risk is to do nothing, see rhinos go extinct, while we stand by and witness this.
100% of your investment goes into saving an entire species
If poaching is not stopped and rhinos are not bred in significantly larger numbers they may become extinct in nature within the next 10 to 15 years.