De-risking investment opportunities in Africa
The Head of Financial Institutions at Bank One, Jean-Eric Matunga says there is more information available to mitigate risks associated with investment opportunities in Africa. Speaking with CNBC Africa on the side-lines of the just concluded Africa CEO Forum in Abidjan, he notes that Mauritius uses governance and ability to channel flows of resources as a strength in de-risking investment-related issues.
Thu, 08 Jun 2023 14:26:22 GMT
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AI Generated Summary
- Mitigating risks in African investments through thorough assessment and mitigation strategies
- Mauritius' strength as a financial hub lies in governance and the efficient flow of resources
- Collaboration and unity among African nations key to unlocking economic growth and stability
The Head of Financial Institutions at Bank One, Jean-Eric Matunga, shared valuable insights on de-risking investment opportunities in Africa in a recent interview with CNBC Africa. Matunga highlighted the availability of information to mitigate risks associated with investments on the continent. Speaking on the side-lines of the Africa CEO Forum in Abidjan, he emphasized how Mauritius leverages governance and its ability to channel resources as key strengths in de-risking investment-related issues.
Matunga addressed concerns about the level of risk associated with investing in African companies. He acknowledged that there is no business without risk but emphasized that as a financial institution, Bank One thoroughly assesses risks and implements strategies to mitigate them. With a deep understanding of the African market, the bank can differentiate between real risks and less risky ventures. Additionally, Matunga highlighted the support provided by multilateral institutions like Afrexim Bank and AFC, which offer guarantees and coverage for conducting business with corporate entities in Africa.
The interview also delved into Mauritius' positioning as a financial hub and the country's ambitions to attract investments and compete on a global scale. Matunga emphasized that one of Mauritius' key strengths lies in its governance framework, which enables the efficient flow of resources within the continent and globally. Despite being a smaller nation, Mauritius plays a vital role in supporting economic growth in Africa by collaborating with other countries and fostering a spirit of unity and development.
Reflecting on his experience at the Africa CEO Forum in Abidjan, Matunga expressed admiration for the growth and stability he witnessed in the region. He commended the progress made by Côte d'Ivoire and expressed hope that other African nations would follow suit in achieving sustained growth and stability.
In conclusion, Matunga's insights shed light on the opportunities and challenges of investing in Africa. By leveraging information, governance, and strategic partnerships, investors can navigate risks and contribute to the continent's economic development. Mauritius' role as a financial center and its commitment to supporting African businesses underscore the importance of collaboration and collective growth in unlocking the vast potential of the African market.