Luna Nevhutalu of Rand Merchant Bank said political stability and policy consistency are essential to strengthen investor confidence across African economies.
These factors determine how global investors assess risk and opportunity. Without a predictable regulatory environment, capital may avoid emerging markets despite their growth potential.
Speaking at the Africa CEO Forum in Kigali, Rwanda, Nevhutalu, who serves as the head of institutional sales for global markets at Rand Merchant Bank, detailed the practical steps nations can take to attract more capital [1]. She said that investors prioritize stability when deciding where to allocate funds [1].
The forum took place May 14-15, 2024 [2]. The event brought together business leaders and policymakers to discuss strategies for improving the economic climate across the continent [1, 2].
Nevhutalu said that the perception of risk often outweighs the actual opportunity in many regions [1]. By establishing consistent policies, governments can reduce this perceived risk and create a more inviting atmosphere for institutional investors [1].
The discussion in Kigali focused on the intersection of governance and finance. Nevhutalu said that the ability of a country to maintain its policy direction over time is a primary metric for those managing global portfolios [1]. This consistency allows for long-term planning and reduces the likelihood of sudden capital flight during political transitions [1].
As African nations compete for limited global investment, the focus on structural stability becomes a competitive advantage. The Africa CEO Forum aimed to bridge the gap between the needs of private capital, and the legislative frameworks of host nations [1, 2].
“Political stability and policy consistency are essential to strengthen investor confidence.”
The emphasis on policy consistency suggests that African markets are currently viewed by institutional investors as high-risk due to regulatory volatility. For these economies to move from speculative to stable investment targets, they must shift from short-term political wins to long-term legislative predictability.
