Profits through progress
How investors can help low income countries
Emerging and developing nations need modern, efficient infrastructure to keep growing. Whether for water or electricity supply, telecommunications or transportation: there are 145 countries with low to moderate gross national incomes that need to invest USD 851 billion annually to bring their infrastructure up to date. That's the only way their local economies can keep growing. For this reason, some countries today are only half as productive as they actually could be.
Private international investors in particular could help, and boost their own businesses into the bargain, but they're holding back because of the risks. This fear is often unfounded, though, and is based on prejudice and failing to see the market properly: a misperception of local risks that is costing these countries a fortune and putting the brakes on their economic expansion. Africa alone lost around USD 9 billion as a result in 2011, for example.
Private investors need to assess the risks involved more realistically to profit more from these countries' growth. These are the findings of this publication in the think: act CONTENT series, "Profit through progress", which was presented exclusively at the G20 summit in Mexico.
How investors can help low income countries