market, yet only 5% of global foreign direct investment goes into the continent.

Business Live reports:

The 25 biggest rapid growth markets of strategic importance to business development, which include SA, Ghana, Egypt and Nigeria from Africa, are expected to make up 50% of global GDP and 38% of consumer spending by 2020, according to a recent study. But at the moment less than 5% of global foreign direct investment goes into Africa.

New Director for growth and opportunity at Africa Practice Group Plc, Richard Kiplagat, says this gap can be filled with better articulation of strategy, policy and risk analysis.

Part of the problem is that investors do not have qualitative assessment of risks, he posits.

“It has been improving, but not improving at the same pace at which our continent has been making strides in a number of areas, like opportunities around extractive industries and oil & gas,” Kiplagat affirms.

He argues, “There is a need for professionalism of market entry, articulation of strategy, risk analysis beyond desk study from remote countries.”

He told Business Live that investors must be properly sensitised with the risks involved so that these risks can be understood and mitigated.

Kiplagat says the challenge is to ensure that economies grow and income inequality does not while access to education is a critical policy pillar that needs to be filled.

Image via Business Live