Wednesday, November 3, 2010

Foreign Investment-Africa

The New Partnership for Africa's Development (NEPAD) emphasizes the importance of private investment into African nations for long term economic development. The reliance on foriegn aid and borrowing prevents the th nations from developing prvate markets which are a necessary component to having both foriegn and private capital development.

The need for such investment is due to African nations desire to reach the Millenium Development goals, most of which rewuire a raise in standard of living. Such goals would require the the continents overall GDP to raise to 6-8% each year, and they are currently average at 3.5%.

Before foreign investment can occur four key areas the articlestates must become developed, or revamped:

"corruption and bureaucratic red-tape, weak legal systems, poor infrastructure, shortages of skilled labour"

The political instability and lack of rules and corporate regulation also keeps many investing nations ou of Africa.

Greg Voegtle


http://www.un.org/ecosocdev/geninfo/afrec/vol17no2/172inv1.htm

1 comment:

  1. Africa is a continent which has lots of diversities and people must come here and invest..
    Foreign investment

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