In Africa, the opportunism of private-equity investors aligns nicely with improving social welfare
Arguably, the turning point in the 2012 US presidential elections between incumbent president Barack Obama and Mitt Romney was the leaking of a recording of the former Utah governor’s infamous “47%” comment.
The comment was a reference to a certain segment of US society being freeloaders while everyone else paid their way. It was leapt on by the Obama campaign to build on Romney’s characterization as the evil private-equity man who became a billionaire by stripping businesses of assets and firing thousands of people.
That image of private-equity investors in the US and Europe, as “vultures” or “locusts,” is one that’s useful for politicians and union leaders. But in Africa, it’s often turned on its head. Increasingly, progressive and ambitious governments are hungry to attract investors with the sizable pools of capital needed to solve big problems, from infrastructure deficits to power generation.
That was evident from a Quartz interview with Côte d’Ivoire’s vice president Daniel Kablan Duncan at this year’s African Private Equity and Venture Capital conference. He pointed out that many of the country’s new toll roads, power generation, and water distribution projects were backed by private investors, not government. “We welcome investors,” Duncan stressed.
Full Content: Quartz Africa
