The World Bank’s political risk guarantee agency has launched a new insurance facility, hoping to attract more investments from abroad in post-conflict territories, including in Africa.
HumanIPO reported last week on the view of international investors on investing in Africa from the African Venture Capital Association (AVCA) Conference in Cape Town, South Africa.
Investors believe tech could be integrated in business to increase African investments.
The role of an improved infrastructure is also advised to heighten confidence in African countries for investments.
According to Michel Wormser, chief operating officer at the Multilateral Investment Guarantee Agency (MIGA), the donor-funded Conflict-Affected and Fragile Economies Facility, will aid with project costs in countries still considered as too risky for investments.
“Foreign investors have usually fled and are reluctant to return until there are signs of political and economic stability,” Reuters reported.
African countries to benefit from this initiative include Ivory Coast, Egypt and Liberia.
Wormser said: “These are countries where the risk is the highest, but where investment opportunities can also be the most profitable.”
Current fixed investments sit at US$20 million from Canada, with two more to follow from Europe.
MIGA aims to collect funds up to US$80 million to rebuild infrastructure, Wormer told Reuters yesterday (Monday).
Pointing to the success story of three previous investments in Ivory Coast by MIGA, Wormser is positive about the timing of motivating new investments in the targeted countries.
Following the relapse of the civil war in 2011, the Ivory Coast gained US$2.5 billion via foreign direct investment to rebuild infrastructure for sectors to thrive and enable economic growth.
HumanIPO reported yesterday (Tuesday) on research as published by Dalberg Global Development Advisors, proving the positive impact of internet on African economic growth.
As technology is an empowering aspect of modern societal growth, the time for investments in this industry is also ripe.
According to auditing firm KPMG, mobile technology is one of the boosters of African economic growth, HumanIPO reported earlier this month.
