ONE of the unintended consequences of the misery of the Covid-19 pandemic is that it could boost Africa’s chances of attracting foreign investment from the northern hemisphere as central bankers slash interest rates, former British prime minister Tony Blair told CNBC Africa in an interview.
Blair said African nations should use this pandemic to reform their economies and build infrastructure to ripen them for foreign investors. He said African nations should look for foreign investors in sectors where the continent can add value to its resources before export.
The economic woes, brought on by Covid-19, dragging down the wealthy economies of the northern hemisphere, could also benefit African nations.
‘There is a vast pool of capital in the west because interest rates are very low and they are looking for an outlet. You look at Japan alone, its pension fund has a trillion dollars in it,’ says Blair.
‘You will get that investment if you build infrastructure and make it the right environment for investors. My advice to African nations is, get that investment in, in the value-added sectors, to build their capacity, so you are in a position to start exporting your own intellectual capital.’