Investors’ interest and confidence in Africa appears to be on the rise, with Nigeria and Kenya leading the pack as favored destinations.
In a survey of some 158 pension funds, banks, hedge funds and similar financial institutions, more than half identified Africa as their choice investment destination in the next 10 years, Reuters says. A third of these respondents said they expect to invest at least 5 percent of their current portfolios in Africa by 2016, the news agency adds.
Within the region, the investors said they find Nigeria, Kenya, Zimbabwe, Egypt and Ghana to have the most attractive investment climates. As for sectors, the respondents said returns of investment would be highest in the fields of energy, natural resources, agriculture and agribusiness, financial services, and construction and real estate.
But challenges remain, the investors said. Among the top risks they identified in the survey were bribery, corruption, weak government and legal institutions, and political risks.
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