|Macro risks in
Africa are a matter of interpretation
Political instability is slowing investment into
Africa’s most promising markets and bilateral
investment treaties (BIT) are doing little to ease concerns,
according to the general counsel of a global conglomerate.
The market is, however, working to address more
tangible macro risks such as regime change and government
intervention through local content rules.
There is growing evidence that political risk in many sub-Saharan African countries
is overhyped, yet many foreign investors still practice
caution when assessing local targets. Speaking at an International Bar Association (IBA) event in
London last week, Hinduja Group general counsel Abhhjit
Mukhopadhay explained why.
"One of the reasons why international investors
like us are holding back investments in Africa is really due to
the political situation and stability of the governments," he
said at IBA’s BRICs to MINT conference.
Despite African countries’ improvements