Inadequate investment performance

In Africa, investment and operating costs are typically 50-100% greater than those in the most comparable area, namely South Asia. This situation is exacerbated by the tendency of developing countries to allocate externally loaned funds to projects giving a low return on investment.

1. In the case of Africa, a World Bank study concludes that the root cause of economic problems is low return on investment. Africa is simply not competitive in a competitive world.

1. Risk of capital investment
2. Inappropriate use of financial resources
3. Deterioration in external financial position of countries

1. Unprofitable scope of rural industrial operations

1. Insurance industry collapse
2. External debt crisis

1. Improving investment performance

1. Nonperformance
2. Lowness
3. Inadequacy