Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The World Bank Group President Jim Yong Kim says whether it's real or a perception, the private sector is concerned that there is too much risk in investing in the continent/CFM NEWS

Enterprise

Risk holding back investors from Africa – WB

The World Bank Group President Jim Yong Kim says whether it's real or a perception, the private sector is concerned that there is too much risk in investing in the continent/CFM NEWS

The World Bank Group President Jim Yong Kim says whether it’s real or a perception, the private sector is concerned that there is too much risk in investing in the continent/CFM NEWS

NAIROBI, Kenya, Aug 26 – Too much risk is holding Africa back from private sector investments as financiers shy away from long term investments in the continent.

The World Bank Group President Jim Yong Kim says whether it’s real or a perception, the private sector is concerned that there is too much risk in investing in the continent.

He says the continent’s leaders need to change both the perception and the reality in order to attract long term investments from the private sector worldwide.

“Governments have to do their part, they need to improve governance and regulation, uphold the rule of law, make the procurement process competitive and deliver better services,” Kim stated during the high policy private sector dialogue on the sidelines of the Sixth Tokyo International Conference on African Development (TICAD VI) in Nairobi.

Africa has been struggling with different challenges that include political instability, red tape and rampant corruption seen as obstacles to investment.

“The big task will be to bring some $100 trillion of pension capital that are earning almost nothing to bring them into Africa,” Kim observed.

Africa is set to grow at 3.7 percent in 2016 and 4.5 per cent in 2017.

Even with the economic headwinds 21 African countries are projected to grow at above 5 per cent in 2016, and a further 19 countries are projected to grow between 3 per cent to 5 per cent in the same period.

According to Africa Development Bank President Akinwumi Adesina for African economies to grow further Private sector must be boosted.

“Africa must support its private sector through affordable lending and to build industries. Today the size of the manufacturing sector has shrunk and needs to be looked at,” he added.

Advertisement. Scroll to continue reading.

The private sector contributes to about 70 percent of Gross Domestic Product (GDP) in Africa and account for 90 percent of Jobs in the continent.

On his part President Uhuru Kenyatta urged Japan to shun perception and increase investments in Africa.

President Kenyatta urged Japan’s private sector to stop shying away from the African continent and take challenges as opportunities for investments.

He urged the Japanese delegation to take time and visit other parts of the country and look for investment opportunities in the country.

The Sixth Tokyo International Conference on African Development is set to be officially opened In Nairobi on Saturday by President Kenyatta and Japan Prime Minister Shinzo Abe and will end on Sunday.

Over 100 companies from Japan will be in the country to exhibit as part of the 4,000 delegates from Japan.

Moreover 60 business Memorandums of Understanding are also expected to be signed during the conference.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...