INTO AFRICA October 2017 Edition: Mind the Gap – Risk in Africa

Welcome to the October 2017 edition of INTO AFRICA, a publication with fresh insight into Africa’s emerging capital markets. This edition looks at challenges and risks in Africa and its title: Mind The Gap: Risk In Africa.

Over the past few years, African economies have increasingly an essential part of any expansion strategy as corporate leaders and fund managers under constant pressure to maximize returns and put capital to work. Although African markets offer a wealth of investment opportunities, these landscapes also present a number of challenges and risks for foreign entities, such as potential fraud and corruption, difficulties acquiring accurate financial information, ownership and governance practices, and regulatory and legal issues. Furthermore, political turmoil, the risk of a widening budget deficit, a weakening currency and the prospect of a credit downgrade usually put investors off African markets.

The World Bank’s ‘Ease of Doing Business Index’ indicates that a significant proportion of African countries still rank in the bottom half of the scale. Likewise, the majority of countries included in the bottom half of the Transparency International’s annual Corruption Perception Index are located on the African continent. Therefore, African leaders must increase their commitments to the principles of governance, democracy, and human rights as well as equal distribution of wealth. This includes, in particular, strengthening the institutions that hold the governments accountable as well as organise credible elections.”

Please download by clicking: INTO AFRICA PUBLICATION: OCTOBER 2017 EDITION.