Why are foreign investors hesitant to invest in many countries in East Africa?
correct answers are
1. D. East Africa,Mediterranean,and India
2. C. Through trade, East Africa became a multicultural mix of diverse cultures.
3. First Greco-Romans settled and spread Christianity. Second christian churches were built along the coast of East Africa. Then King Ezana became a christian. And last is Zagwa rulers carved large churches out of rock.
Hope this helps I got a 100%
It's believed that money invested in East Africa goes mostly to corrupt governments and business people. It does not help the ordinary people or the businesses.
In addition, these investors will not make money on their investments -- but will probably take a loss.
Thanks alot!!!!
You're welcome.
Foreign investors may be hesitant to invest in many countries in East Africa due to a combination of factors:
1. Political instability: Political uncertainties, including frequent changes in government and concerns about corruption, can make foreign investors wary. In some countries, the risk of political unrest, protests, and civil unrest can also create an unfavorable investment climate.
2. Weak infrastructure: Inadequate transportation networks, unreliable power supply, lack of proper communication systems, and limited access to markets can hinder the growth and profitability of businesses. Insufficient infrastructure can increase operating costs and limit market reach, deterring foreign investors.
3. Regulatory challenges: Complex and burdensome bureaucratic processes, excessive red tape, inconsistent enforcement of regulations, and lack of transparency in legal frameworks can make it difficult for foreign investors to conduct business. Unclear property rights and the difficulty of obtaining permits and licenses can also create obstacles for investment.
4. Limited market size: Many countries in East Africa have smaller populations compared to other regions, which can limit the potential customer base for businesses. This can be a deterrent for industries that require economies of scale to be profitable.
5. Lack of skilled labor: In some cases, a shortage of skilled labor and talent may hinder foreign investors' ability to find the necessary workforce to operate and expand their businesses effectively. This can impact productivity and competitiveness.
6. Economic volatility: East African countries may experience fluctuations in economic growth rates, inflation, currency exchange rates, and fiscal policies. These volatile economic conditions can increase investment risks and reduce investor confidence.
To address these concerns and attract foreign investment, countries in East Africa are making efforts to improve political stability, enhance infrastructure development, streamline regulatory processes, promote investment-friendly policies, and invest in education and skills training to develop a skilled workforce.