Perceived risks of investing in Africa are higher than the actual risks, and attractive investment opportunities can arise from the ‘negatives’ associated with Africa.
These were the views of Nkosana Moyo, the founder and executive chairman of the Mandela Institute for Development Studies (MINDS), who was speaking to an audience of investment professionals at the Fifth Annual European Investment Conference, held in Prague, 18–19 October 2012.
Moyo explained that the financial markets of the developed world were considered low risk, but the financial crisis that started in 2008 proved otherwise. The 2011 GDP growth rate for Africa, estimated at 5.2%, showed that Africa’s economic growth was recovering from the drop it experienced after 2008, and it was well above the levels seen before 2001. He said that one has to be careful with aggregating data across more than 50 African countries because they are materially different from one other, but such data facilitate discussion on identifying longer-term changes.