Blockchain Tech Driving Africa Investors Upbeat Assessment Of Prospects

Blockchain, Investing, News | November 24, 2018 By:

Research from UWIN (Unleashing the Wealth in Nations), a blockchain business aiming to transform farming and commodity trading in Africa and other parts of the developing world, has shown a positive outlook for the continent’s opportunities by professional investors.

51 professional investors including hedge funds, private equity and pension funds were interviewed between May and June 2018 by the market research company PollRight.

The research claims that 45% view Africa as an attractive investment opportunity, and just 27% see it as ‘unattractive.’  Two thirds (64%) expect foreign direct investment into Africa to increase over the next five years, with 12% anticipating a big rise. Only 10% anticipate a fall in this area.

Technological advances, particularly blockchain, are cited in the survey as transforming economies there.

Other key findings from the research include:

  • 42% of investors expect levels of corruption in Africa to fall compared to only 24% who anticipate it will increase
  • 46% of professional investors expect Africa to enjoy some of the strongest economic growth of anywhere in the world over the next few years
  • 54% of professional investors say Africa will attract more foreign direct investment because the continent will become more appealing to investors because there will be greater stability in the region, followed by 44% who said its young and fast-growing workforce give it an advantage over many developed countries that have the opposite.
  • Between now and 2023, 42% of investors expect levels of corruption in Africa to fall compared to only 24% who anticipate it will increase
  • Lack of infrastructure is seen as biggest obstacle holding back Africa – highlighted by 82% of professional investors interviewed.This is followed by a lack of robust regulation (78% of investors) and political risk (80% of investors).  However, there is a strong feeling amongst investors that many of these issues are beginning to be addressed.
  • Much of the investment into Africa is also expected to go on improving the infrastructure of the region – 80% of investors expect the use of Project Finance in Africa to increase over the next five years, and 88% believe the amount spent on infrastructure overall will increase.
  •  64% of professional investors expect foreign direct investment into Africa to increase over the next five years’
  • 46% believe Africa will enjoy some of the strongest economic growth of anywhere in the world
  • Biggest obstacles to Africa reaching its potential are a lack of infrastructure, corruption and poor regulation.