Boosting Investor Interest In Africa
Finweek English|13 April 2017

Simplified access to funding, currency stability and improved access to infrastructure can contribute to increased investment on the continent.

Patrick Mamathuba
Boosting Investor Interest In Africa

Simplified access to investment funding in Africa is needed to stimulate growth across the continent. While the fundamentals of key countries across sub-Saharan Africa indicate significant growth and investment opportunity, access to reliable financing is often a barrier for foreign and local investors.

Funding takes different forms including private equity and venture capital. According to the Preqin Special Report Private Equity in Emerging Markets, 12% of all private equity investors based in emerging markets are in Africa. This is ahead of Central and Eastern Europe at 7% but lags Latin America (13%), the Middle East (17%) and Emerging Asia (50%). Local and regional banks are another source of funding. Africa has an opportunity to increase its share of investment by creating transparent and effective regulatory frameworks and by overhauling physical infrastructure.

Studies have shown that poor road, rail and port facilities add between 30% and 40% to the costs of goods traded among African countries.

When only a quarter of Africa’s road network is tarred and only 38% of the African population has access to electricity, investment in infrastructure development is key to unlocking growth potential that will attract new investors.

Regulatory enablers, such as forward thinking initiatives by governments to attract foreign investment through transparent and consistently applied legislation is critical to enabling investors to accurately quantify risks when considering Africa-based development projects.

Economic growth and infrastructure

Bu hikaye Finweek English dergisinin 13 April 2017 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

Bu hikaye Finweek English dergisinin 13 April 2017 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

FINWEEK ENGLISH DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 dak  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 dak  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 dak  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 dak  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 dak  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 dak  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 dak  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 dak  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 dak  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 dak  |
5 November 2021