Global Risk Insights
Global Risk Insights, 3:25 am
As the global economy continues its sluggish recovery and emerging markets stutter, investors are looking further afield for newfound opportunities. And with well over a billion people, a growing middle class, an educated elite, and established trading capitals including Lagos, Johannesburg, and Nairobi, it’s no surprise many are turning their attention to Africa and its lucrative frontier markets.
Global Risk Insights, 1:41 am
Ethiopia’s economic growth is likely to continue on a positive trajectory. Significant foreign investment is flooding into the country, yet political dynamics pose reputational risks for investors. A relative lack of corruption, cheap labour costs, fiscal incentives and a relative lack of security risks render Ethiopia an attractive market. In agriculture, infrastructure, manufacturing and energy sectors, Ethiopia draws substantial international investment
Global Risk Insights, 9:11 am
A fractious opposition and strong support for President Alassana Ouattara will most likely guarantee a victory for the incumbent. Unlike the last presidential election, risks of violence are low but not to be discarded if results are contested. Assuming a peaceful election, Ivory Coast’s economic outlook is buoyant. President Ouattara’s NDP has significantly contributed to re-launching the Ivorian economy.
Global Risk Insights, 10:47 am
Uganda is withdrawing its troops from South Sudan. This will heighten political risks for investors and businesses across South Sudan in the short and medium term. In the long-term, high risks could mean high returns. In 2011, Nespresso partnered with Technoserve to establish a new coffee exporting industry in South Sudan. They aim to diversify South Sudan’s economy away from oil.
Global Risk Insights, 7:45 am
Africa’s potential beer market is attractive by virtue of its demographic features. According to U.N. statistics, Africa will to account for one-fifth of the global population by 2025. More importantly, the continent boasts the largest working age population in the world. In Tanzania, 45% of the entire country is between the ages of 15 to 45, and this figure is expected to increase within the next decade.
Global Risk Insights, 8:42 am
Things are moving fast in Kenya’s telecommunications sector. As a consequence of the enormous growth in the mobile communications industry in Kenya, tensions might undermine its further development as the two biggest stakeholders in the industry fight in an uncertain regulatory context to get the biggest possible share of the pie.
Global Risk Insights, 7:13 am
After a failed coup by Major General Godefroid Niyombare, President Nkurunziza returned to Burundi and secured his power. The crisis should be seen as just one of the many examples of the serious challenges to the development of inclusive democracies on the African continent. Burundi’s case will be perceived as a warning sign and not as a precedent for ruling leaders to extend their power unconstitutionally.
Global Risk Insights, 5:36 am
With positive macroeconomic indicators, the Democratic Republic of the Congo is aspiring to be an emerging country by 2030. To achieve this goal, the country appears to be more willing to implement significant reforms. despite a difficult security environment, the country has managed to increase its average growth rate from 2.8% in 2009 to 8.7% in 2014, recording the third fastest growth rate in the world this year.
Global Risk Insights, 6:08 am
While Western Europe led the colonization of Africa in the 19th century, a new race for Africa, led by East Asia and the Gulf, is taking shape. The 2008 financial crisis demonstrated the consequences of rising fuel and food prices. In particular, developed and emerging market countries with sparse arable land have become acutely aware of their vulnerability to food security, all the more so in the face of climate change.
Global Risk Insights, 7:15 am
The increasing interest among pension fund managers in Africa towards private equity investments could hold the key to enhancing the level of capital available for local entrepreneurs. In a study on pension funds based in ten African countries, it is estimated that there are at least $380 billion in pension fund assets under management. Of this amount, $29 billion could be dedicated to private equity investments