Private wealth investment in Africa 'may be held back by lack of funding'

Private wealth management companies interested in developing nations such as Africa have been told of the future of the continent by the International Monetary Fund (IMF).

Managing director of the IMF Dominique Strauss-Kahn issued a statement along with the minister of finance of Sierra Leone and chairman of the African Caucus Samura Kamara.

In it the pair said economic growth in Africa dropped in 2009, with an average of two per cent noted in sub-Saharan Africa (SSA).

However, 2010’s outlook remains more positive, with the potential for economic growth to reach 4.75 per cent, something which could be taken on board by private wealth management firms.

Investment in the continent does need to improve, with the duo stating: ’Infrastructure in SSA remains underdeveloped, impairing competitiveness, discouraging private investment and constraining growth potential.’

Private wealth management companies may, therefore, be holding back from entering this market because of a lack of funding as a whole.

The IMF has 186 member countries and promotes exchange rate stability, international monetary cooperation and helps to assist with poverty reduction.ADNFCR-2318-ID-19744428-ADNFCR