Despite fierce opposition from international mining companies, the DRC has signed into law regulations to implement the country’s new Mining Code, which introduces several major fiscal and regulatory reforms. Pursuing a high risk, high reward paradigm, these reforms will have a serious impact on the DRC’s already weak investment environment.
For nearly a decade, Ghana’s parliament has failed to pass the Right to Information (RTI) Bill, giving the general public the right to access information held by public sector organisations. But the recent pledge by President Nana Akufo-Addo to sign the bill into law by the end of 2018 suggests that this dallying is finally at an end, not only enhancing the country’s democratic landscape and investment environment, but also giving further credibility to the NPP’s much-touted anti-corruption campaign.
Long considered an attractive investment destination in the otherwise troubled Horn of Africa, Djibouti’s reputation is at risk following the government’s controversial seizure of the DP World-operated Doraleh Container Terminal (DCT). The unilateral termination of DP World's contract has raised concerns over the stability of the country’s investment environment and may damage investor confidence in the longer term.
The recent introduction of new mining regulations has created uncertainty within Tanzania’s banking sector, as the government attempts to further maximise the country’s economic benefits gained from its abundant natural resources by limiting the involvement of foreign-owned banks in mining-related businesses.
Uncertainty over recent changes to Tanzania’s mining laws and regulations has created an increasingly unpredictable operating environment within the country’s mining sector. While many western companies already operating in Tanzania remain reluctant to commit their future to such an uncertainty, China is exploiting emerging opportunities to gain entry into the country’s lucrative mining sector.
While police corruption is not an unknown phenomenon in Nigeria, its effects on foreign investment can be underestimated. Not only does police corruption have the potential to generate unforeseen business costs – through the use of bribes and extortion – but it also compromises the police’s ability to address threats, undermining the country’s security environment. This inevitably further damages Nigeria’s efforts to position itself as an attractive investment environment.
Ghana’s inviting investment climate, and apparent commitment to the long-term development of its nascent tourism sector, is making the hospitality sector an attractive target for hotel investors looking to expand into Africa. While progress is being made, challenges remain as Ghana continues to struggle with unnecessary bureaucracy, excessive regulation and infrastructural deficiencies.
While still not considered one of Ghana’s dominant economic sectors, Ghana’s new NPP administration appears to be making concerted efforts to prop the country’s tourism sector. Over the past 12 months the government has introduced a number of key initiatives to open up the country’s tourism sector to private investment and turn the country into a leisure tourism destination.
As both Russia and the DRC continue to suffer from the effects of international sanctions, an uptick in high-level diplomatic meetings between Congolese and Russian officials appears to suggest a mutual desire to develop the two countries’ nascent relationship.
Belgian interests are being targeted by the DRC government in a series of apparent retaliatory attacks following Brussels’ decision to reallocate funding that was intended for the central government to humanitarian NGOs. While Kinshasa’s actions may be downplayed as political grandstanding, there are concerns that they will inevitably impact the foreign business environment.
While it is widely agreed that the illicit practice of trade misinvoicing is costing African countries billions of dollars a year, the scale of the issue remains to be debated. It can be argued that the potentially over exaggerated estimates of misinvoicing in Africa being quoted by highly-respected and influential international institutions may in some cases be counterproductive, adversely affecting their investment environments.
Considered a key industry in Nigeria’s economy, the mobile telecoms sector has recently enjoyed a period of unprecedented growth. Yet, competition is fierce, and the mobile segment remains largely controlled by just four operators – all of whom have attracted allegations of fraudulent behaviour in an attempt to maintain their influential positions in the market.