Gradual Investment in Africa tapering off?
This last couple of months, we have had a mixed bag of not-so-good news coming from Africa’s investment hotspots. Slowing growth and a widening deficit and a debt to GDP ratio approaching 60%, in Ghana, the Nigerian naira in free fall due to decreasing oil prices, sluggish growth in South Africa, as well as a recent terrorist attack on a bus in Kenya. Add the worsening Ebola crisis in Guinea, Sierra Leone, Liberia and recently, Mali, and it gives the perception that the continent is on a downward spiral.
However, there spots of good news from countries you wouldnt expect: a billion dollar oil and gas find in Mozambique, a recent multimillion beer investment in Ethiopia, as well as the recent strong showing of African banks in THE BANKER study of the top 1000 banks.
For heatlhcare investment, there is a gradual but noticeable trend upwards, which we hope will result in increased deals for the continent.
As Africa huffs and puffs, its not yet time to close our eyes and look away. Investor confidence in the continent still remains high; at least compared to the stuttering Eurozone.We here at BlueCloud are cautiously optimistic and bullish on Africa. And why shouldn’t we be? Africa’s revival is palpable, never mind the occasional stutter. Africa is here to stay. The renaissance continues to be real, despite the ‘coat being a little dirty’ as the African Business magazine alluded to whilst writing on Ghana. That coat will be sparkling clean again. Just watch and see.