Friday, 29 June 2012 00:00

Written by Isaiah Erhiawarien

Foreign investors have been urged overcome their fear of major risks and get more involved in major infrastructure projects in emerging nations.

A new study by Roland Berger Strategy Consultants (RBSC) showed that there is actually nothing to worry about saying, “We urgently need international investors to be more involved in major infrastructure projects to ensure growth and prosperity for many countries, Businesses should overcome their fear of major risks, which is totally unfounded in some cases.”

Presenting the report, Partner and member of the global management of RBSC, Mr. Charles Edouard Bouée, said in a statement containing highlights of the study, that  about 145 emerging nations with low to moderate gross national incomes need $851 billion for infrastructure annually in order to secure further growth, however, most private international investors fear the risks involved in major infrastructure projects.

The statement said these countries, where most of the growth of the past few years took place, need $851 billion each year to cover electricity, water supply, transportation and telecom infrastructure in particular in order to keep growing, the lack of which meant they were producing 45 per cent less than they could.

Africa alone lost around $9 billion in 2011 as a result and private investors need to assess the risks involved more realistically to profit more from these countries’ growth.

Bouée said “private international investors have a duty to help modernize essential infrastructure in the emerging nations in Asia, Africa and Latin America, not only can they help emerging nations grow, but they can also open up important areas of business in new markets for themselves because only growth generates more growth”
Between 2005 and 2010, Europe’s gross domestic product (GDP) grew only 0.8 per cent annually. By contrast, GDP in Asia grew by more than 5 per cent annually over that same period.