Africa is now United Kingdom’s golden pot and British companies are making a killing

According to a new report from the Overseas Development Institute (ODI), British companies have made bigger profits investing in Africa than in any other region of the world.

The report, which was published as Britain formally left the European Union on January 31, looks at investment by British firms in Ghana, Kenya, Nigeria and South Africa. 

Boosting 1.2 billion people and eight of the world’s 15 fastest-growing economies, the ODI says Africa offers world-beating returns on investment.

Africa may have been labelled as the dark continent where wars, disease, corruption, poverty and everything bad resides as far as the Western narrative of the continent goes but just how wrong are they.

Africa is rich and multinational and international companies are making a killing, a new international report shows.

One of the biggest winners who have turned Africa into a golden pot is British companies who have made bigger profits investing in Africa than in any other region of the world.

A parade at Buckingham Palace in June 2016.

BusinessInsider

This is according to a new report from the Overseas Development Institute (ODI), which urges firms to seek profits on the continent rather than seeing it as a place to do charitable work.

“Young population, growing middle class, and planned industrial growth make the continent a great place to do business.” the report authors say.

Boosting 1.2 billion people and eight of the world’s 15 fastest-growing economies, the ODI says Africa offers world-beating returns on investment.

The report, which was published as Britain formally left the European Union on January 31, looks at investment by British firms in Ghana, Kenya, Nigeria and South Africa.

African Union headquarters in the Ethiopian capital Addis Ababa

In 2019, for instance, the rate of return on all inward foreign direct investment in developing African countries was 6.5%, higher than Latin America and the Caribbean whose rates stood at 6.2%.

Africa’s return on investment was also higher than the 6% return in developed economies.

Going forward, UK is not going to enjoy its ‘African’ pie alone as the rest of the world is slowly waking up to the reality that Africa is ripe with profitable ventures.

President Vladimir Putin with his South African counterpart, Cyril Ramaphosa during the first Russia-Africa Summit. (worldpoliticsreview)

Last year, Russian President Vladimir Putin hosted dozens of African leaders in the first Russia-Africa Summit.

The two-day event held at the Black Sea resort of Sochi saw more than 3,000 delegates attend and sign deals as well as discuss topics from nuclear technology to mineral extraction.

All 54 African states sent a representative, as Russia races to revive its old soviet ties with the African continent.

UK-Africa Investment Summit

Reading on the same script, UK last month rolled the red carpet for Africa and held the first UK-Africa Investment summit aimed at consolidating its hold on Africa ahead of Brexit.

British companies believe they have an edge against their rivals in the field of technology with the UK Space Agency backing satellite firms that offer services to African farmers, such as PRISE, or Pest Risk Information Service.

Similarly, Boris Johnson’s government is set to invest over US $65.7m into renewable energy projects in Africa, as it works with selected African countries to develop sustainable energy sources.

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