Sub-Saharan Africa is tailing other regions as far as infrastructural investment is concerned and for the region to attract foreign investment there is need to address that deficit, this is according to Koko Khumalo, Risk Leader for Africa & Public sector for EY.
Khumalo also indicated that the state of infrastructure in the continent was one of the challenges the region is facing and to attract the much needed FDI, regional economies need to make investment in this space.
The Ernst and Young (EY) developed a tool that helps investors in assessing risk profile, ease of doing business and infrastructural gap in the region.
“We realised as a firm that it is important to have data that back up why people should invest in Africa. To help respond to some questions investors ask, we developed the tool called Beyond Borders that investors can utilise in making their assessments,” Khumalo said.
“When investors are keen to do business in the continent, the tool helps them in knowing how long it will take them to establish a business and regulations they are expected to adhere to.”
According to Khumalo, this tool looks at the ease of doing business, compares GDP growth and gives insights into the state of infrastructure.
The tool was developed in the backdrop of the company’s Africa Attractiveness Survey where EY surveys about 500 global business people on where they can and cannot invest in the region.
“Their perceptions are important in guiding politicians, ambassadors, and commissioners on how to plan on issues like regional integration and infrastructure,” added Khumalo.