SCB: investment in Africa vital to meeting SDG deadlines

By Georgia Wilson
Standard Chartered Bank (SCB) urges that investment in Africa is vital, or risk missing the UN sustainable development goals (SDG) deadlines...

Following a report conducted by Standard Chartered Bank (SCB) the organisation found that currency only 3% of the world’s top 300 investment firms are investing their AUM into Africa. This lack of investment is expected to put the chances of meeting the 2030 SDG deadlines at risk. However, positively 93% of those who are investing in Africa Plan to increase their investments in the future.

Investment shortfalls and challenges

Elsewhere in the report, SCB identified that 64% of the firms’ AUM is invested in developed markets (Europe and North America) while only 3% is invested in Africa, 2% in the Middle East and 5% in South America. 

SCB details that the risks posed by investing in emerging markets was flagged as a high risk by two thirds, while 42% believe the same for developed markets.

In addition to being identified as high risk, 53% believe that returns from investments in Africa are low/extremely low, with 59% identifying that they are put off from investing due to a lack of in-house specialist teams.

However, those that are already investing in after are in contrast optimistic about the region. With 93% commenting that they are likely to increase investments in the future, as well as 54% of African investors highlighting that their investments performed as well as - or better than - their developed market investments in the last three years.

“There is still an investment gap in Africa to realise the SDG’s and this creates an opportunity for us to make a difference where it matters the most. “A significant surge in private-sector investment – alongside public investment and commitments – will be required to bridge the gap and hit the SDG targets over the next ten years. Right now COVID-19 has made the imperative to act even stronger in the region. There is no single answer to The $50 Trillion Question, but it is evident that investors need to expand their focus beyond developed markets. Africa, and emerging markets generally, offers investors a unique opportunity: strong returns combined with the chance to have a significant, positive impact in the long term,” commented Sunil Kaushal, Regional CEO, Africa & Middle East, Standard Chartered.

To read the full report, click here!

For more information on business topics in Europe, Middle East and Africa please take a look at the latest edition of Business Chief EMEA.

Follow Business Chief on LinkedIn and Twitter.

Share

Featured Articles

Exclusive: Making the UAE a global force in cybersecurity

His Excellency Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government, on plans to build the world’s most secure digital society for a safer society

UAE cyber leaders – back to basics to prepare for the future

HE Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government and Dr Aloysius Cheang, Chief Security Officer Huawei UAE, on the future of cybersecurity

Top 10: Procurement & Supply Chain LIVE speaker highlights

Global industry leaders descended on London for a two-day conference dedicated to shaping the future of digital procurement and supply chain

10 apps to improve wellbeing on World Mental Health Day

Leadership & Strategy

Meet the COO: Brook Sims of MAC Diversity Recruiters

Leadership & Strategy

Best business books to improve leadership strategy

Leadership & Strategy