Learning About Africa

Regarding crises in Africa, it is true that they can have a negative effect on foreign investment, but this is not always the case. Bad news for a particular African country can affect other countries in the continent. Conflict and insecurity discourage potential investors, especially those who are interested in sectors other than natural resources or those who are not entirely familiar with Africa.

However, recent conflicts in Africa are confined to a few unfortunate areas. The Central African Republic (CAR) has never been a very important destination for foreign investors. In Mali, the conflict is now contained and the southern part of the country can rebound quite quickly. In Côte d’Ivoire, some investors have informed us that they achieved more profitable business in Abidjan during the crisis than in neighboring Ghana. In contrast, in South Sudan, the crisis has affected oil production and foreign companies have removed non-essential staff. But let us not forget that oil companies continued their operations in Angola even during the Cuban intervention in 1988. As Africa’s economies gain momentum, democratic governments take hold and the continent’s young population grows wealthier, investing there is becoming both easier and more attractive to international investors.