Scramble for Africa
The Business has an article which points out the “two contradictory but equally damaging perception problems” which Africa faces. The first is that western investors have the mindset that Africa is full of “poorly run countries” which means that the image of the stronger economies are often contaminated. On the other hand, the legal system and trade regulation in individual countries particularly the smaller one generally puts off potential investors.
The article goes on to suggest that one way to overcome the problem may be regionalisation. While a single pan-African exchange may not be achievable, or even desirable, a compromise could develop with regional hubs. These would be centred around the Nigeria stock exchange in west Africa, the Johannesburg Stock Exchange leading the merger of southern African stock markets, while Nairobi and Tunisia lead the merger of eastern and northern African stock markets respectively.
Tags: Africa, Business, Nigeria
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