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Report: Africa Delivers Largest Profits on Investment

Henry Ridgwell

   LONDON - British companies have made bigger profits investing in Africa
   than in any other region of the world, according to a new report from
   the Overseas Development Institute (ODI), which urges firms to seek
   profits on the continent rather than seeing it as a place to do
   charitable work.

   With 1.2 billion people and eight of the world's 15 fastest-growing
   economies, the ODI says Africa offers world-beating returns on
   investment.

   The report looks at investment by British firms in Ghana, Kenya,
   Nigeria and South Africa. Its authors say the "young population,
   growing middle class, and planned industrial growth make the continent
   a great place to do business."

   In 2019, the rate of return on all inward foreign direct investment in
   developing African countries was 6.5 percent, higher than the rates in
   developing Latin America and the Caribbean at 6.2 percent, and also
   higher than the 6 percent return in developed economies.

   The report was published as Britain formally left the European Union on
   January 31. The government repeatedly has said its ambition is to
   create a "global Britain" with new trading partners beyond the European
   continent. As part of the effort to court new partners, London hosted
   the Britain-Africa Investment summit last week.

   Proactive approach needed

   Recent data from agency the International Trade Center show France and
   Germany export more than double the value of goods to Africa than
   Britain does. London must get proactive post-Brexit, according to
   Lourenço Sambo, director general of Mozambique's Investment Promotion
   Center, who spoke to VOA on the sidelines of the summit.

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