Africa faces the risk of capital flight as a result of increased cases of unconstitutional government changes, which are creating macroeconomic uncertainties among foreign investors, African Export-Import Bank (Afreximbank) has warned.
The pan-African multilateral lender says coups, ongoing conflicts, political instability and rising insecurity in several parts of the continent continue to weigh heavily on the continent’s investment and economic outlook, adding that the heightened political uncertainty around electoral cycles may further delay reforms, weaken investor confidence and elevate risk premiums.
