PRESS RELEASE: Economic Club and USBAA Release New Report on Risk Perception, Investment Opportunities, and Africa’s Diaspora Capital

September 1, 2023

The Economic Club of Africa and the U.S. Business in Africa Awards (USBAA) have released a new report titled “Perceptions versus Brightening Reality: Unpacking Business Opportunities in Africa through Five Lenses.”

The potential for U.S. businesses to take advantage of Africa’s investment opportunities is tremendous. However, compared to other regions, the continued perception of Africa as a high-risk investment destination constitutes a major drag on value creation via two-way trade and investment between both regions.

In 2022, the USBAA was launched in Johannesburg, South Africa to help change the narrative on doing business in Africa by offering an accurate representation of the continent. This paper provides an evidence-based foundation for that narrative. 

Authored by Professor Paul Clyde, President, William Davidson Institute at the University of Michigan; Professor Fred Olayele, Chairman, Economic Club of Africa; and Ezekiel Odiogo, Head, Private Sector Operations, African Development Bank Group, the analysis unpacks five broad issues aimed at providing a balanced perspective to mitigate the information asymmetry associated with doing business on the continent: labor market, spending and income, governance performance, investment, and Africa’s diaspora capital.

Risk perception is highly asymmetric across geographic regions of the world. To maximize existing opportunities, U.S. businesses must first address the issue of information asymmetry, which affects risk perception and decision-making regarding investment opportunities on the continent.

The executive summary is available here. To receive a copy of the full report, click here