I’d like to ask you, my readers, a question. What can we do to keep investment flowing to Africa (and other developing regions of the world) during the current global financial crisis?

As I reported in my last post:

• Net private sector capital flows to emerging markets are projected to decline from $466B (2008) to $165B in 2009; and
• Commercial banks are expected to make a net withdrawal of $61B from emerging markets this year 

In further recent developments, App+frica reported that London-based Gateway Broadcast Services’ Gateway TV (GTV) has announced it is closing up shop. 

“Gateway Broadcast Services, suppliers of the GTV service to subscribers across Africa has over the last 2 years invested a total of US$200 million and created jobs and competition in the 22 markets. The economic crisis that has emerged globally over the last few months has caused excessive demands on the business…

…’Increased instability in global markets interrupted our ability to secure funding on an acceptable timescale and have left us no choice but to cease operations,’ said a company spokesman.”

App+frica also points out that British Airways has begun canceling partnerships with local travel agencies in East Africa given a decline in tourism numbers. Putting all of this together with the worldwide decline in remittance flows, there is reason to be concerned.

So, my questions to you (the readers) are:

• What are the primary challenges to attracting and maintaining investment to Africa and developing countries right now?
• How should business models be revised given the global financial constraints?
• What can we do to help promote sustainable investment in emerging markets?

I’m looking forward to hearing what you have to say!

Leave your comments and suggestions below and I’ll compile them all in a new post.