SA scores from Africa exodus
Challenges unique to the continent are tripping up multinationals in other countries — which may be good for SA
SA, despite its many problems, might actually start looking like a safer bet for multinational firms looking to park their cash than its peers on the continent. The exit of Blackstone, the world’s largest alternative investment manager, from key markets such as Nigeria and Ethiopia has delivered another devastating blow to the region, which has experienced an exodus of foreign companies such as Barclays, General Motors and insurance broker AON. A UN report released in January showed that some regions in Africa had double-digit declines in foreign direct investment (FDI) in 2018. The continent, which registered a 6% increase in FDI inflows, was saved by SA and Egypt. New York-based Blackstone’s exit will threaten key infrastructure projects in Ethiopia and Nigeria, projects both countries were banking on to increase economic activity. US news outlets reported last week that Blackstone was withdrawing from its African infrastructure drive and selling its African subsidiary, Black Rhin...
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