The future will see more integration and economic cooperation between nations. The inward focus that some western nations have started to explore is not the right way forward. The best approach is to invest in emerging markets such as Africa and help them to modernize.
African Regulatory Red Tape Still Stumbling Blocks
The outlook for African investment isn’t completely positive. Regulatory hurdles continue to be a problem for all investors. As noted above, these can be overcome by using local firms as intermediaries. This would allow western investors to navigate past the mistrust of the colonial past.
Such difficulties are the reason why some Western investors have avoided African Investment or even reduced it. Investment by the US for example, shrunk more than 5% in 2016. In contrast, Chinese investment almost doubled in the same period.
When it comes to Africa, the Chinese seem to have their eye on the long-term. If Western investors don’t alter course they will continue to lose ground to the Chinese.
