The logical place for expansion has always been the rest of Africa. However, exchange control regulations have placed a major constraint on any designs that domestic companies have had regarding foreign direct investment into Africa. |
The regulations on exchange controls were significant to local firms as they brought enormous exposure to risk. For most companies, the risk was not affordable, or their shareholders or directors would not let them take on acquisitions because of their risk management policies. |
The upshot is that the relaxation in exchange control will make a big difference to local companies that have wanted to invest in Africa. |