Investors see potential in Africa
A RECENT survey of professional investors revealed that a majority saw Africa as an attractive investment opportunity.
The research, from Unleashing the Wealth in Nations, found that 64 per cent of professional investors expect foreign direct investment into Africa to increase over the next five years.
And 46 per cent f professional investors believe Africa will enjoy some of the strongest economic growth of anywhere in the world.
But the biggest obstacles to Africa reaching its potential are a lack of infrastructure, corruption and poor regulation.
Aquaculture development on the continent has attracted recent investment, from companies such as Africa Century and Oakfield Holdings, principally in tilapia farming, in countires including Zimbabwe and Zambia.
The survey found that 45 per cent of professional investors viewed Africa as an attractive investment opportunity, and just 27 per cent saw it as ‘unattractive’.
The main reason why investors believe Africa will attract more foreign direct investment is because technological advances will help transform economies there – the view of 70 per cent of those interviewed.
This was followed by 54 per cent who said the continent will become more appealing to investors because there will be greater stability in the region, followed by 44 per cent who said its young and fast-growing workforce gave it an advantage over many developed countries that have the opposite.