Speaking at a conference in Ethiopia, United Nations investment analyst stated the obvious — investors don’t want to put their money into Africa when they see genocide in Sudan, civil war in Ivory Coast, and the sort of endemic corruption in countries like Zimbabwe.
According to the BBC, Africa as a whole only sees about $15 billion total each year. That’s just pathetic.
Moreover, even in countries where there are not ongoing wars or endemic corruption, there is plenty to trouble investors. South African president Thabo Mbeki’s close relationship and support of Zimbabwe strongman Robert Mugabe, for example, must surely give some investors pause.
Unfortunately, there seems to be no end in sight to such problems, as Africa seems unable to get itself off a vicious cycle of war and corruption.
Source:
Africa conflicts ‘scare investors’. The BBC, November 22, 2004.