Much has been written in recent years about the improvement in the Sub-Saharan African investment climate for financial service providers in banking, lending, insurance, and private equity. AfricaAtlantic is pleased to provide several noteworthy exerpts from statements and reports on the improvement.
Foreign Policy Association
“Despite such promising signs for an emergent 21st century Africa, it seems at times that any discussion on Sub-Saharan invariably centers on a form of 'Afro-pessimism' that has become conventional thinking toward Africa – a cacophony of social and political pathologies, ethnic conflict, war, famine and oppressive poverty. However, contrary to conventional wisdom, recent trends and developments in Sub-Saharan Africa – such as democratization, foreign direct investment (FDI), and international capital flows into African markets, large scale development projects, economic performance, and the development of liberalized trade and free market regimes--indicate a ripe environment for widespread trade, investment, privatization and project finance opportunities that will abound in an emergent 21st century Africa.” ~Foreign Policy Association
Reuters article on OECD 2008 African Economic Outlook
“As part of its 2008 African Economic Outlook, the OECD said funds raised for private equity in sub-Saharan Africa almost tripled in 2006 -- the last year for which it gave complete figures -- to $2.3 billion. Improvements in the African investment environment and a series of spectacular African business successes ... have fuelled an unprecedented boom in the size and breadth of African private equity funds.Overall, a huge rise in mergers and acquisitions, especially in banking and telecoms, took foreign direct investment flows to $36 billion in 2006, double 2004 levels, it said. The report said 40 African countries took steps to promote foreign investment in 2006. These included allowing foreign participation in the telecoms sector, reforming their banking sector, easing registration and tax constraints and establishing special investment zones.”
International Monetary Fund
“But investors are also attracted by sub-Saharan Africa's recent solid macroeconomic performance, more stable political situations, and high expected returns given surging commodity prices. Their interest is reflected in improved investment ratings, the renewed ability of some countries to tap international capital markets (Gabon, Ghana, and Seychelles have recently issued bonds internationally), and the growing number of private investment funds dedicated to SSA.” -IMF
Hewlett-Packard Africa Managing Director (article from Africa Journal, a publication of the Corporate Council on Africa)
“Africa is a huge continent ... There are various opportunities where companies like HP can invest. On the one hand it’s a market to sell our products, but on the other hand, it also can serve as a hub for outsourcing activities for the rest of the world…In the services arena we see a growing demand for professional services like consulting and outsourcing activities. Clearly the consumer market and services. In the consumer area we see a huge demand for affordable personal computing equipment. American companies are really welcome on the Continent, and the time to get there is now, as the investment climate is much better than perceived by the public. The opportunities are recognized already, especially by Chinese and Indian companies.”
If you would like to learn more about how your business can take advantage of improving conditions in Sub-Saharan Africa for investment, please contact Jon Vandenheuvel at jvan@africaatlantic.com.
