Investors love stories, and when it comes to bedtime tales Africa is the emerging market investment darling of the day (or evening). But who is really putting money into what The Economist famously called ‘the hopeless continent’? The statistics seem to tell a story of striking change – but as you may not be surprised to hear, statistics can lie.
A few months ago the respected fDi Markets data service, a subsidiary of the Financial Times, published a striking story about investment in Africa. “India top Asian investor in Africa” was the headline. It seemed that India, the junior giant of the emerging market world, had suddenly overtaken the biggest, richest and fastest-moving BRIC economy when it comes to grabbing a share of Africa’s high-growth, high-risk investment markets. India had trounced its Asian rival China.
If true, that would be remarkable…
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