(4 minutes read)
· George Asante, Managing Director at Absa Group, the leading bank incorporated in South Africa said that the pandemic caused several disruptions to the business community across the continent, particularly in major African economies like South Africa, Nigeria and Kenya
· The impact got manifested as production and job losses and importantly leading to a near halt in investments
· George Asante said that countries like Kenya, Ghana, etc. who went into the crisis mode earlier to the pandemic may have a comfortable economic trajectory post pandemic
· But such countries, which have not resorted to fiscal prudence, may have to struggle henceforth
George Asante, Managing Director at Absa Group, the leading bank incorporated in South Africa said that the pandemic caused several disruptions to the business community across the continent, particularly in major African economies like South Africa, Nigeria and Kenya. The impact got manifested as production and job losses and importantly leading to a near halt in investments.
In an interview given to a television channel Asante said that investors are looking at developed or emerging markets for ensuring returns on investments. They would look at the developing countries in the continent or elsewhere only when they feel that returns on investments are guaranteed. The governments and policymakers should frame polices that could compensate the investors more than what they would get by creating investment portfolios elsewhere in the world. The other issue is relating to debt management. Countries in the continent should have a common policy relating to management of external debt and how it could be managed/reduced over a period of time.
George Asante said that countries like Kenya, Ghana, etc. who went into the crisis mode earlier to the pandemic may have a comfortable economic trajectory post pandemic. But such countries, which have not resorted to fiscal prudence, may have to struggle henceforth. Laying emphasis on promotion of the private sector across countries in the continent, he said that infrastructure development opportunities were immense and could lead to creation of social good and employment.
He also underscored the need for attracting investors like pension funds, asset managers etc, who are looking at other alternatives apart from the developed and emerging markets, which could give them returns and long term prospects. ‘
