EXECUTIVE MANAGER – BUSINESS DEVELOPMENT
COEGA DEVELOPMENT CORPORATION
QUESTION 1 What do you think is the major scope or challenge for the Investments?
Six of the ten fastest growing economies in the world in the past decade were in SSA and the trend is expected to continue in the future. Today the rate of return on foreign investment in Africa is higher than in any other developing region. A large market: 840 million people, with a total US$1.9 trillion in purchasing power, making it larger than some of the BRICS. Favourable demographics: from a rapidly growing population and labour force, to growth in the middle class, rapid urbanisation; 50% of the population will live in cities by 2035. By 2040, Africa will be home to one in five of the planet’s young people and will have the world’s largest working-age population. A sharp reduction in political conflicts, improved macroeconomic environment, with inflation and budgets broadly under control will provided a better business climate owing to regulatory reform and privatisation. Improved access to and integration with international capital markets
The major challenges for investments in Africa is Corruption and over-regulation, weak legal and governmental institutions, illiquidity in capital markets, political risk, lack of depth in capital markets, infrastructure backlogs, weak corporate governance.
QUESTION 2 How do you think the political and economical situation affects the scope of Investments in Africa?
• Political and economic stability form a sound basis for the decision to investment.
• High levels of instability may inhibit the ability to attract Foreign investment.
• Instability creates uncertainty which threatens investment decision
QUESTION 3 What would be your suggestion for implementation for a better future for African Investments?
Good leadership with clear vision, efficient infrastructure is critical for attracting investment, stability of the macroeconomic environment, healthy workforce, high quality of education and training, efficient labour market, sound and well-functioning financial market, adequate technology reduction of trade barriers and harmonisation of standards, business sophistication, reduce, corruption practices, reduce bureaucracy burden, reduce crime, encourage innovation
QUESTION 4 According to you how would investments in the region help in economic growth of Africa?
• Increase productivity through new investment in physical and human capital
• Increase employment,
• Enhance management,
• Transfer technology and skills,
• Have spillover effects on local firms through supply and distribution chains, trading, and outsourcing