A new survey by Baird’s CMC and the US Chamber of Commerce highlights key reasons for lack of US business interest in the second largest and most populous continent. These reasons include: The likely return is not commensurate with the risks; other continents, countries, and regions offer better investment options; and Africa is viewed as needing excessive work to be an attractive investment choice.
To make Africa more attractive to US investment, respondents sought:
Investment in the health and education of the African people to create a large pool of skilled and productive human resources. Investment in and maintaining of infrastructure -- transportation, communications, electricity, and security -- so that there will be a reliable societies in which to operate. Building functioning legal systems to ensure the rule of law, transparency, and fair play. Creating a positive climate for foreign investments by reducing bureaucratic processes, eliminating corruption, and reforming tax systems, irrespective of country of origin. Ensuring stable political environments - that may or may not be based on western democratic principles - that work toward the common good of all stakeholders in society.
As a continent covering 20% of the world’s total land area, a population nearing 1 billion people speaking 1,000 languages across its 53 countries, such aspirations provide a generalized framework but transformation realities are clearly particularly complex and certainly situational. This being said the survey provides very interesting and credible insights to inform our thinking and shape future policy and corporate, governmental and societal strategy. Source: The Conversation Behind Closed Doors - Inside the Boardroom: How Corporate America Really Views Africa; Baird’s CMC and the US Chamber of Commerce, May 2009.
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