At a time when most of the news reports for large, industrialized nations seem mixed, at best, it may be time to look to other nations for investment opportunities. One surprising locale for big economic growth in the near future is North Africa.
Gaining momentum since 2006, the impact investing concept is now 9 years old but it is yet to be well established in many emerging markets including East Africa. As opposed to the maturity expected of an industry after such a long period of time, this particular sector is still nascent in the region according to a report by Global Impact Investing Network (GIIN). The impact investing industry is facing a number of challenges both from the supply side (impact investors) and the demand side (local entrepreneurs) that are delaying its growth within the region.
In 2014, for the first time in recorded history, more humans lived in cities than anywhere else – around 54% of the global population to be exact.
Most economists agree that cities are the engines of economic growth. And, mass urbanization may prove to be one of the most important changes of the early 21st century according to Jamal Saghir, director of sustainable development at the World Bank. If models hold true, predictions show that by mid-century, fully 2/3 of the world’s population will dwell in cities.
The impact investing space is growing in Africa and could be the trigger this developing continent needs for faster sustainable development. As the MDGs are being replaced by the SDGs in 2015, new development concepts and policies are being floated for Africa to adopt. Impact investing could be one of the best strategies if embraced and well implemented across the continent.
Recent plans regarding a natural gas plant that has been long-delayed over the years could be the stepping-stone that may transform Ghana’s economy. The president, John Dramani, has announced that he believes the construction of such a facility will be more beneficial and crucial to the economy of Ghana than even an oil discovery.
Some may have heard various reports throughout the world of the Ebola virus beginning to spread. While there have been a few suspected cases in various areas, countries in Africa are now beginning to close their borders to prevent any more of an outbreak. In fact, South Africa is refusing to admit any person from the infected areas of West Africa.
Contrary to logic, resource-rich countries in Africa have tend to experience less economic growth in the long run than those deprived of natural riches. To reverse this trend, NGOs have been campaigning for greater transparency and accountability in the management of revenues from oil, gas and mining.
Africa will have to spend between $200-350 billion a year in climate adaptation costs by 2070, if the current global temperature rises by more than two degrees Celsius, according to a UN Environment Programme (UNEP) report on Tuesday.
Sub-Saharan Africa has lost $1 billion a week for the past 30 years due to illicit financial flows related to their natural resources, according to international relief and development organization Oxfam America, urging governments and businesses to work together in introducing sweeping measures to improve transparency and governance in the region.
The ongoing debt and financial crises have exposed the dangers of the dysfunctional fiscal governance present in the U.S. and Europe. As African countries prepare to enter sovereign debt markets, they should heed the west’s “warning” – to handle fiscal issues with transparency and accountability or risk heading down the same route.
