Investment and Risk in Africa

1. Front Matter

   Pages i-ix

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2. Introduction

   1. Front Matter

      Pages 1-1

      PDF

   2. Investment and Risk in Africa

      • Paul Collier, Catherine Pattillo

      Pages 3-30

3. Risk in Africa: Its Causes and its Effects on Investment

   1. Front Matter

      Pages 31-31

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   2. Rating Africa: The Economic and Political Content of Risk Indicators

      • Nadeem Ul Haque, Nelson Mark, Donald J. Mathieson

      Pages 33-70

   3. Risk and Private Investment: Africa Compared with Other Developing Areas

      • Frederick Z. Jaspersen, Anthony H. Aylward, A. David Knox

      Pages 71-95

   4. Risk, Financial Constraints and Equipment Investment in Ghana: A Firm-level Analysis

      • Catherine Pattillo

      Pages 96-121

   5. The Risk and Expected Returns of African Equity Investment

      • Claude B. Erb, Campbell R. Harvey, Tadas E. Viskanta

      Pages 122-150

   6. Risk and Portfolio Investment in Africa: A Practitioner’s Approach

      • Joe Demby

      Pages 151-165

4. Reducing Risk through Domestic Agencies of Restraint

   1. Front Matter

      Pages 167-167

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   2. The Central Bank as a Restraint: the Experience of Uganda

      • Louis A. Kasekende, Iftikhar Hussain

      Pages 169-184

   3. The Cash-Budget as a Restraint: The Experience of Zambia

      • Christopher S. Adam, David L. Bevan

      Pages 185-218

   4. The Courts as a Restraint: The Experience of Tanzania, Uganda and Botswana

      • Jennifer A. Widner

      Pages 219-245

   5. Investment Codes as a Restraint: The Experience of Southern Africa

      • David A. Ailola

      Pages 246-271

5. Reducing Risk through External Agencies of Restraint

   1. Front Matter

      Pages 273-273

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   2. The Franc Zone as a Restraint

      • David Stasavage

      Pages 275-307

   3. Aid and Debt Conditionality as Restraints

      • Ravi Kanbur

      Pages 308-322

   4. Investment Insurance in Africa

      • Gerald T. West

      Pages 323-337

   5. The Potential for Restraint through International Trade Agreements

      • Paul Collier, Jan Willem Gunning

      Pages 338-351

   6. The Potential for Restraint through an International Charter for FDI

      • Mark A. A. Warner

      Pages 352-362

This book brings together academics in the fields of economics, political science, and law, with business practitioners in the fields of risk assessment and portfolio management. Their contributions are sequenced to tell a story. Africa is perceived as being a highly risky continent. As a result, investment is discouraged. These risks are partly exaggerated. However, to the extent that they reflect genuine problems, they are capable of being mitigated by insurance and reduced by political restraints such as central banks, investment charters, and international agreements.

• Investment
• Portfolio
• Portfolio Management
• Rating
• investments and securities

• Policy Research Group, The World Bank, USA

  Paul Collier

• Research Department, International Monetary Fund, USA

  Catherine Pattillo

CHRISTOPHER ADAM Lecturer, Oxford University DAVID AILOLA Associate Professor of Political Science, University of Michigan ANTONY AYLWARD Economist, International Finance Corporation DAVID BEVAN Lecturer, Oxford University JOE DEMBY Regent Fund Management, London CLAUDE ERB First Chicago NBD Investment Management Company KAREN FERREE Doctoral Student, Harvard University JAN WILLEM GUNNEN Director, Centre for the Study of African Economies NADEEM UL HAQUE Adviser, Research Department, International Monetary Fund CAMPBELL HARVEY Professor, Duke University AFIKAR HUSSAIN Economist, Research Department, Bank of Uganda FREDERICK JASPERSEN Economist, International Finance Corporation RAVI KANBUR Lee Professor of Development, Cornell University LOUIS KASAKENDE Executive Director, Research Department, Bank of Uganda DAVID KNOX former Vice President of the World Bank MALCOLM MACPHERSON Fellow, Harvard Institute for International Development NELSON MARK Professor of Economics, Ohio State University DONALD MATHIESON Division Chief, Research Department, International Monetary Fund STEPHEN O'CONNELL Professor of Economics, Swarthmore College LEMMA SENBET William E. Meyer Professor of Finance, University of Maryland SMITA SINGH Doctoral Student, Harvard University DAVID STASAVAGE Research Officer, Centre for the Study of African Economies, Oxford University TADAS VISKANTA First Chicago Bank NBD Investment Management Company MARK WARNER Assistant Director, Center forInternational and Comparative Law, University of Baltimore School of Law GERALD WEST Multilateral Investment Guarantee Corporation JENNIFER WIDNER Associate Professor of Political Science, University of Michigan

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