Africa’s bad image turns away global investors

By Macharia Kamau

The tarnished image of African countries, including Kenya’s in the global arena still gets in the way of attracting investors to the continent.

A new survey notes that despite improved physical infrastructure and the general doing business environment, many global investors still perceive Africa as conflict and disease ridden, which has been attributed to the continent failing to show that it is as good an investor destination as other regions.

The survey by Africa investor (Ai) and Interbrand-Sampson said Africa has been placed the third most attractive investment destination after Southeast Asia and India.

The research outlines what investors think about Africa, and what African countries should be aware of when jostling for investments from global investors.

The African Brand Investment Index that was the result of the research is expected to provide evidence about how countries are perceived as investment destinations by the global investment community. According to the findings, many feel that African governments are not doing enough to promote the region as an investment destination in spite of many countries having carried out a degree of reforms in a bid to foster an investor friendly environment.

Political stability

Other issues that affect the Africa’s investment brand are political stability and regulatory practice.

"Africa has a great opportunity to harness the goodwill from the investment community to position brand Africa as a globally competitive investment destination," said Hubert Danso, vice chairman and managing director at Africa investor.

"The continent has made great strides implementing a raft of regulatory reforms to ensure it is business friendly and it’s up to governments to commission adequate resources to communicate effectively in today’s competitive and complex global investment information environment."

There have been efforts by different national bodies to position their countries as brands but has not borne much fruit in attracting investors as well as tourists to many African countries.

Branding experts, however, say those countries that have succeeded have taken time and resources.