We expect private investors to help open a window of opportunity in Africa.Given this region's historical record of underdevelopment, political instability
and resource mismanagement, we cannot expect breakthrough and rapid progress. We expect demanding and experimental development ahead and as the investment environment gradually but inevitably, becomes conducive for
progress, professional investors and managers will be willing to take prudent risks.
Several powerful and sustainable forces are driving this transition including a
movement towards properly functioning democratic institutions; increased
adoption of economic policies conducive to market forces and competition; externally imposed requirements necessary to attract funds from both
public and private sources; and internal pressures from citizenry no longer
willing to accept a declining quality of life.
Given the distance African nations have to travel to close the gap with
an improving global economy and their relatively weak institutions, the road
ahead can be expected to be long, but the gaps make the opportunities enormous. We believe that well-managed businesses in high potential niches can
be positioned to achieve expectional results. The keys to successful investment will be to manage risk properly; to craft strategies specifically for
this market; and to transfer in the best global practices through proper timing, practical adaptation and innovative skill. The key ingredient is superior management.