Capital flowing back to the African markets

Tutu Agyare states in The Banker:

“We advise a number of different corporations from different sectors from telecoms to mining companies. Africa is being rediscovered, if you like. Capital is flowing back into Africa; infrastructure is being built in Africa.” He puts this welcome trend down to a number of factors, singling out two for special mention. “Corporate governance in Africa, regardless of what you read in the newspapers, is growing significantly. Security of property rights is also improving rapidly, I believe, becoming more transparent and being better enforced on the continent. And there’s a lesson from history here, Agyare believes. “If you look back to Britain’s Industrial Revolution, what you observe is the abundance of cheap minerals from Africa, an excellent security of property rights and a legal system that worked. Those factors enabled private investors and institutions to grow and to prosper. And I see that happening now in Africa. Like many Africa observers, Agyare is fascinated by the new China-Africa alliance that has developed over the last year or two. “The Chinese are building new infrastructure at cost, something that has not been done in Africa for years, and although there are risks attached to the relationship in termsof neo-colonialism, the absence of skills transfers and cheap Chinese goods flooding the continent, that new infrastructure will undoubtedly allow African companies to flourish.”