Author: H. Broadman.

The sustained rapid growth of many African economies over the past decade and a half, bolstered by resilience during the recent global economic crisis, has been appreciated more by the countries of the South than those of the North, the traditional source of much foreign investment in Africa. Multinational corporations in China and India, in particular, have moved to capitalize on the opportunities unlocked by this development and, although they bring different approaches to market entry and operations, these investors - as well as Africans - are likely to substantially benefit in the longer term as they refine their strategies to manage risks and tap into the rewards. Investment from the North will continue to be an important contributor, but unless their firms recognize the extent of the opportunities that Africa presents, their strategy will be marked by a more cautious and less profitable approach.