Africa Needs 'Return on Investment' Attitude

Published on 29th July 2014

According to a recent report by Health Poverty Action , while on one hand $134 billion flows into Africa  each year in loans, foreign investment and aid; $192 billion leaves the continent in profits made by foreign companies, tax evasion, debt payments following irresponsible loans; illegal logging and illegal fishing, among other avenues. Africa consequently suffers a net loss of $58 billion a year. The report comes in the wake of a 2013 World Resources Institute report which revealed that the continent loses 23% of its available food in wastage that can be prevented.

Investors who are buying  into the African growth story, like any other business people, are keen on  high returns on investment. Africa should likewise adopt a ‘return on investment’ attitude in both international and local business engagements. Exercising due diligence, prudence and plugging the holes that make the continent’s wealth leak or go to waste is a good place to begin. 

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