Corruption tops security risks in Africa

Security continues to be a major risk for companies operating in Africa, with piracy in particular picking up along Africa’s West Coast. According to David Butler, managing director of Control Risks SA, piracy has plagued the African coast for many years and while the east coast seems to have matters under control, the incidents along the west coast are on the increase. “There are also various other risks that one has to contend with when working in Africa, especially in the project sector,” he said. “And that includes looking at the political risk that exists - although many countries have come a long way in this regard. Probably one of the biggest risks for operators and investors currently is around the rapid change being experienced across the continent.” He said countries were struggling to come to terms with the change, the increased economic activity and delivering on the goals and targets being set. “But knowing that the risk is there and understanding the risk and the impact over a long time, it is possible for countries to enter into these countries as they can manage the risk and therefore deliver.” Butler said many countries were now politically stable, having realised the importance of this in growing economies. “Another major risk for Africa is around infrastructure. It is critical that Africa addresses its challenges and invests heavily in port, rail and road infrastructure,” he said. Corruption remains at the top of the risk gauge. “Dealing with corruption and bribery has to be a priority for governments, but at the same time companies need to look at their own compliance policies.”