Insights

2016 Deloitte Africa Risk Conference

Event summary Report

The Deloitte Africa Risk Conference is designed to give participants the opportunity to understand the Africa risk landscape and to continue the dialogue on how businesses may navigate the African continent and how to chart the path of success in light of these risks. The deliberations on risk in Africa at present are relevant given the socio-economic instabilities at a local, regional and international level.

Key takeouts from this report

1. The Current Global Environment of Risk
The global risk survey which informs the report uses an approach that takes into account different risk categories, including:

  • The phenomenon of the (dis)empowered citizen 
  • Changing climate and weather pattern
  • The outbreak of diseases on a global scale.

2. Top 10 risks in Africa

  • Rising global protectionist sentiments
  • Eurobonds and Africa’s fiscal cliff
  • China’s hard landing
  • Domestic political risk and governance
  • Prolonged low commodity prices
  • Currency volatility risks
  • “Captured capital” risks
  • Regulatory uncertainty
  • Credit ratings downgrades
  • Climate change.

3. The Financial and Macroeconomic Risk Outlook for Africa
Despite overall slow growth, non-resource intensive countries are still performing well with reports of growth rates of around 5%. Countries such as Kenya, Senegal and Côte d’Ivoire are driving growth on the continent – each projected to grow above 6% this year.

4. Rising Regulatory and Compliance Risk in Africa
There are vastly different compliance risks faced by firms across the continent. Rather than trying to develop a risk compliance strategy that is applied at the group level, companies need to make sense of the local environment and develop a local compliance strategy.

5. Cyber-Risk: Cybercrime and Data Protection in the Era of Big Data
The rate of cyber growth is strongly correlated to the rate of growth in cybercrime. As individuals and institutions incorporate technology in their day–to-day functions, greater risks also emerge.
 

What our experts say

“In the difficult times the world is going through, looking through the lenses of some of the risks outlined, firms need to carefully identify and target markets that are agile enough to survive the challenges and constantly review their risk mitigation strategies to match an ever-changing and diverse set of territories across the continent.” Dr Martyn Davies, Managing Director: Emerging Markets & Africa
 

How can Deloitte help

For more information about investing in Africa, contact the Africa Services Group

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