Business
Africa to be most attractive investment region in next decade
The Next Attraction
Investors eye Africa’s emerging middle class as the most attractive aspect of the continent, which until now has been a largely natural resources play.
“Interestingly, the Invest AD-EIU survey suggests that investors are largely drawn by the same “income convergence” story that has played out in China and India, not the worn, one-dimensional motivation of mineral extraction,” Nazem Fawwaz Al Kudsi, chief executive office at Invest AD, said.
Still, institutional investors have several concerns about investing in the continent, according to the report titled “Into Africa: Institutional Investor Intentions to 2016.”
“Africa’s biggest challenge is to overcome deeply entrenched perceptions. But a striking shift that can be observed among investors is a change in focus from macroeconomic and political worries towards more technical market concerns,” according to the report.
Although bribery and corruption is the headline worry for investors, concerns about weak institutions and illiquidity in capital markets are not far behind.
