Video Briefing

Nomad Capitalist: Why I’m Not Investing in Africa (It’s Not What You Think)

Dec 22, 2019Video Briefing8:23Watch on YouTube

Investing in Africa is often limited by strict foreign ownership laws, high prices relative to development, and a scarcity of markets with strong metrics.

• Many African countries restrict foreign ownership, making direct investment difficult or impossible for outsiders. • Some countries have relatively high prices for land or development projects compared with their economic development level, reducing potential upside. • Countries like Rwanda have potential, but opportunities are often more expensive than similar projects elsewhere. • Investors may feel uncomfortable entering highly exotic or less-developed markets, and confidence to start can be a barrier. • The best investment is pragmatic: choose opportunities that are accessible, fairly priced, and that you can manage effectively rather than chasing exotic or romanticized projects.

Takeaway: Africa may offer opportunities, but practical constraints, cost, and market readiness often make other developing countries, like Colombia or Cambodia, more suitable for initial foreign investment.