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China-Africa Trade Information Service
http://info.afrindex.com
China-Africa Trade Information Service
Image from North Africa Post
African leaders and business executives, at the World Governments Summit in Dubai, sought to strongly challenge the persistent myths about investment risks in Africa.
Speaking in one of the panels, Akinwumi Adesina, president of the African Development Bank (AfDB), presented data revealing that Africa’s risk profile is far lower than commonly believed, with a loss rate of just 1.7% over the past 14 years — significantly lower than Latin America’s 13% and Eastern Europe’s 10%. This stark contrast defies the “risk premium” that often deters global investors, who are misled by negative stereotypes about the continent, according to Adesina.
Tony Elumelu, founder of the Tony Elumelu Foundation, emphasized Africa’s potential for high returns, highlighting his own success in sectors like energy and healthcare.
He thus urged investors to see opportunity where others see risk, adding that “there’s nowhere else we get the kind of returns on investments as what we make in Africa.”
To address key concerns that have historically deterred international investors, the AfDB announced its plans to launch a new Investment Guarantee Agency, offering a comprehensive coverage against climate, political, equity, and currency risks.
This initiative aims to further attract international investment as Africa stands poised to shape the future of global industries like electric vehicles and renewable energy. As Africa moves toward industrialization and value-added manufacturing, the continent’s future as a global investment hub is looking increasingly bright. With Africa’s vast potential, the message to global investors is clear: the real risk lies in missing out on the opportunities that the continent offers.
