Huge losses on western markets mean that foreign investors are looking elsewhere for new assets in which to pour their excess funds. And African countries could provide the secure returns that they are looking for.
While the rest of the world heads toward recession, the African economy is growing. Changes in national laws have opened up the market to foreign investors, and made Africa a more attractive investment prospect.
“I think there will be a growing trend for sovereign wealth funds (SWFs) to invest in Africa,” said Wim Dejonghe, of Allen & Overy in Belgium. “We have seen growing activity all across the continent, and there are new opportunities for high-return investments.” Speaking at yesterday’s Africa Forum session, Can Africa Compete? Dejonghe outlined the rapidly expanding role of SWFs in the global economy, and urged African businesses to be ready to take advantage of this available capital....