Thursday, October 04, 2007

Africa ready for business? Not politically.

A few days back, I attended a talk by a CEO of one of the investment banks. Someone there asked him the following question "given Africa is now being touted as the next emerging market, do you have any plans to set up base there?". His answer was straight to the point, "you are right that Africa is a soon-to-be-emerging market (he gave it 5-10 years), however from our shareholders' point-of-view, its political risks far outweighs any current ROC (returns on our capital)".

Currently, any interactive online Kenyan website is full of base politics i.e. politics of the lowest common denominator. One has to assume that the majority of the web visitors are fairly young i.e. the next generation of leaders. And this is their level of debate?

Wenzangu, kizuri chajiuza.


Ssembonge said...

For the same reasons foreign investors give Kenya a wide berth is the same reason that I am yet to invest in the NSE. Call me paranoid, but there are better opportunities in the emerging world. Plus the shilling not that stable.

John Maina said...

I think the political system is couple of decades behind the business system which has kept kenya going even during Moism era that little survived.