Poor infrastructure 'puts off Agoa investors'
28 August 2009
Poor infrastructure is partly to blame for putting off investors, it has been reported.
AllAfrica.com explained the majority of the countries signed up to the African Growth and Opportunity Act (Agoa) face problems accessing the US market.
The website cited a recent report which highlighted how there was a lack of interest among investors in farming, as well as an ignorance of the preferential treatment and poor infrastructure.
According to the paper, this discourages people to put money into projects because there is uncertainty where the finance will go and what it will produce.
The online resource quoted a senior African Union official Erastus Mwencha speaking at a forum in Kenya last month.
"It's time to make Agoa permanent, predictable, transparent and investor-friendly," he stated.
Mr Mwencha added the investments in Agoa should include infrastructure developments - especially in transport and energy - because many of the countries were landlocked with small economies.
Signed in 2000, the Agoa attempts to offer incentives to countries in Africa to open their economies and build free markets.