africapractice hosts event to share perspectives on the impact of the financial crisis on Africa
Author: africapractice
Date: 11/11/2008
London, November 11th 2008 – africapractice today hosted a panel discussion entitled ‘The impact of the financial crisis on Africa'. The event addressed issues such as the extent of Africa’s insulation from the global financial crisis, and the expected significance of ongoing market turmoil on future investment flows.
Richard Laing, CEO of CDC Group, Geoffrey White, CEO of Lonrho, and Razia Khan, Head of Research for the Africa region at Standard Chartered, shared their perspectives with an audience of investors and business leaders.
As concerns about the global economy continue and speculation about the repercussions on emerging markets increase how will African economies fare over the next few years? Razia Khan of Standard Chartered, maintained that “we remain positive about the African story”, being the continent least caught up in the global “financial exuberance” of recent years. However, what is needed is Africa-to-Africa trade and investment, as well as sustained investment in infrastructure to enable further activity.
Investors with exposure in Africa appreciate that the continent is not isolated from the financial turmoil. Richard Laing of CDC quoted a 40% decline in remittances to Kenya as an illustration of some of the side effects being felt on the continent. However, he reminded the attendees that 45 of 48 Sub-Saharan countries have experienced growth since 2000, which will continue – if at a slower pace.
Geoffrey White gave the business perspective, as Lonrho continues to build and grow in Africa, from airlines to hotels. While commenting that there is still a lot of bad news to come from the corporate sector worldwide, “I am still bullish on Africa”. Lack of available capital to start new businesses will be the biggest challenge, he believes, but Africa is still the strongest emerging market and will continue to grow.
“In arranging this discussion africapractice is once again playing a leading role in supporting the development of business strategies in the African region. Our pan-African footprint and extensive client network make us uniquely positioned to front the response on these important contemporary issues,” said Marcus Courage, Managing Director of africapractice, who chaired the event in central London. “From the rise of a new consumer class to opportunities in raw materials and agribusiness, Africa is a strong place to be – with or without the credit crunch. The positive fundamentals which have been so important in the growth picture during the last three years are still in place.”
For more information, please contact Camilla Flatt at cflatt@africapractice.com.
Presentation from Razia Khan, Standard Chartered (PDF)
Presentation from Richard Laing, CDC Group (PDF)