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Investing in Africa: potential risks and mitigation measures

November 2014

Microeconomix co-sponsored the Poland Africa Congress held in Lodz, Poland on 27-28th November, 2014. The company was represented by Sidy Diop, Vice President Africa, and Joanna Piechucka, Economist.

During the congress, our team made a presentation on the potential risks and mitigation measures associated to investing in Africa.

Polish investors are increasingly interested in African markets. This is however accompanied by high risk perceptions. These two factors are the main drivers for demand for risk mitigation solutions.

Microeconomix presented various risk mitigation tools offered by development agencies to investors interested in the African continent. These solutions can facilitate investment decisions by introducing efficient means to reduce the exposure to risk and/or the likelihood of its occurrence. A potential investor should however keep in mind that these risk mitigation tools may be accompanied with mechanical constraints: the investor may have to face an increased financial cost, applying to standards and rules set by development agencies may reduce its margin of manœuvre, etc.

Since 2013, Microeconomix provides specialized and independent economic expertise applied to African markets. Our studies combine the rigor of the tools of economic analysis, the power of quantitative models and a detailed knowledge of the local conditions, in particular in the field of project financing.

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