Professional investors eye big African opportunity, blockchain a major driver

New research from UWIN (Unleashing the Wealth in Nations) amongst 51 professional investors reveals that 45% view Africa as an attractive investment opportunity and just 27% see it as ‘unattractive.’ Two thirds expect foreign direct investment into Africa to increase over the next five years – with 12% anticipating a big rise.  

The main reason is because technological advances, especially blockchain, will help transform economies there – the view of 70% of those interviewed.

The continent does, however, have many issues to tackle. “In terms of the biggest ones holding them back, 82% of investors we interviewed cited a lack of infrastructure, and 82% highlighted corruption. This is followed by a lack of robust regulation (78% of investors) and political risk (80% of investors).  However, there is a strong feeling amongst investors that many of these issues are beginning to be addressed,” says Sandra Ro, Managing Partner and COO of UWIN.

Between now and 2023, 42% of investors expect levels of corruption to fall compared to only 24% who anticipate it will increase. Much of the investment is also expected to go on improving the infrastructure of the region. 80% of investors expect the use of Project Finance in Africa to increase over the next five years, and 88% believe the amount spent on infrastructure overall will increase.

UWIN says that it is currently in discussion with African governments on how they could use its blockchain technology proposition that enables farmers in the developing world to properly register their commodities, mobilise them and efficiently trade their produce on a trusted platform.