Foreign investors pumping money into East African port projects face risks such as poor governance, volatile geopolitics and mounting public debt, according to risk consultancy Allan & Associates.
A number of ports located on or near the Horn of Africa, such as the Doraleh Container Terminal (DCT) in Djibouti, the Port of Berbera in Somaliland and Sudan’s Port of Sudan, are seeking international investment, but Allan & Associates said that sparse international media coverage means potential investors are often ignorant of the risks involved.
One particular issue is mounting popular pressure to ensure that development favours the local population, or ‘localisation’. For example, Nigerian officials are under pressure to award tenders at Lagos Port’s commercial hub to local businesses over foreign contractors.
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