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A2 Global Risk Releases New Report Assessing Investment Risks Related to Port Infrastructure Expansion in Sub-Saharan Africa GlobeNewswire June 14, 2021

LONDON, June 14, 2021 (GLOBE NEWSWIRE) – London and Hong Kong-based risk management consultancy A2 Global Risk has released a new report outlining the investment risks associated with expanding port infrastructure in Sub-Saharan Africa against the backdrop of the global geopolitical competition. The COVID-19 pandemic and associated travel and operational restrictions resulted in unprecedented disruption to international trade and highlighted the risks associated with aging port infrastructure and regional bottlenecks.

Faced with these risks, African governments are actively seeking to upgrade their infrastructure and trade regulations to remove non-tariff barriers to trade as part of their efforts to modernize their trade infrastructures such as airports, seaports, roads and internet access. International actors operating in this area are intensifying their competition for market access amid increasing trade and geopolitical tensions around the world.

In Africa traditional world powers like France and the European Union on the one hand and China on the other hand have been competing for lucrative port expansion and management contracts for years. But both Western and Chinese companies have been accused of abuse and neo-colonialism. A growing number of Middle Eastern countries, especially the United Arab Emirates and Turkey, now offer a third alternative.

Although this growing competition offers African countries new alternatives, which in turn can promote local opportunities for action, it also raises questions about responsible corporate actors and signals emerging political risks to companies with an established presence.

“The Gulf States, particularly Saudi Arabia and the United Arab Emirates, have increased their presence on the continent, particularly in the Horn of Africa, significantly over the past decade,” said Olivier Milland, Senior Analyst for Sub-Saharan Africa. “This is largely part of their strategic development plans to diversify economies and secure future food supplies. Domestic efforts to attract foreign capital or entice companies to set up shop in the region mean corporate standards there need to be raised to the same level as in advanced economies, adding a greater compliance burden for Gulf-based companies means to get a competitive advantage. “

About A2 Global RISk
A2 Global Risk is a political and security risk management consultancy headquartered in Hong Kong with offices throughout the Asia-Pacific region, as well as London and Washington DC. We provide a subscription-based information service platform and tailored security risk management services around the world to help companies understand their political environment and mitigate risk accordingly. More information is available at www.a2globalrisk.com.

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