With the recent referendum
by the United Kingdom to leave the European Union, many businesses with
existing or planned investment interests in the UK have started turning to
African countries.
The Ecobank Group Research
who revealed this in a statement entitled ‘’Investment after Brexit: Africa is
the Final Frontier’’, said that the businesses were looking for new investment
frontiers.
The statement said that the
revelation was the core of the Middle Africa Fixed Income Currency and
Commodities (FICC) Guidebook 2016, recently published by Ecobank.
‘’With the UK having voted
in its recent referendum to leave the European Union, many businesses with
existing or planned investments
in the UK will be looking
for new investment frontiers.
‘’Africa’s move to
diversify its economies and its rising consuming class are creating an array of
new investment opportunities.
‘’Kenya, Côte d’Ivoire,
Senegal, Ghana and Ethiopia are the best examples, with broad-based economic
growth, young populations and
rising urbanisation,’’ it
said.
According to the statement,
the Middle Africa FICC Guidebook contains an economic outlook, overview of the
key sectors in the region and a guide on 41 countries in Sub-Saharan Africa.
Ms Chi Onwurah, Chairperson
of the All-Party Parliamentary Group (APPG) for Africa, said in the statement
that the impact of Brexit on the global economy cannot be overestimated.
‘’ But while we are faced
with huge challenges, we also should look at opportunities for Africa.
‘’The EU’s trade agreement
with Africa has been criticised for its negative effects on African industry
and agriculture.
‘’The UK could be in a
position to develop a more mutually beneficial policy,’’ she said in the
statement.
Also, Mr Edward George,
Head of Ecobank Group Research, whose team created the guidebook, said in the
statement that African countries
were offering opportunities
for businesses and investment.
“Investing in Sub-Saharan
Africa does come with risks, just as anywhere else in the world.
‘’Understanding these risks
and how to manage them is the critical difference between success and failure,”
he said in the statement.
According to it, it is
essential that investors and businesses understand the opportunities that
Africa’s new economic frontiers
present.
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