President Paul Kagame has called for a shift in how investors assess opportunities in developing countries, saying the perception that markets in the Global South are riskier than those in developed economies needs to change.
He was speaking during a high-level panel at the 28th Commonwealth Heads of Government Meeting (CHOGM) in St John’s, the capital of Antigua and Barbuda, on Monday, November 2.
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"There is a perception out there that the developing countries, for example, that part of the world that a number of our countries belong to, in making these investments there are higher risks for the investments in the South than in the North. And this has continued to play out for a long time," Kagame said.
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"But it is not true. There are risks everywhere for any investments you want to make."
Kagame said countries should instead focus on strengthening cooperation and pooling resources to mitigate investment risks, particularly in projects with strong commercial potential.
"Risks will be there, but they will be everywhere, so we have to make sure that risks are understood to be cutting across the globe, not just in the perception of the North versus the South. I think the Commonwealth can be helpful in this."
Regional markets offer opportunities
President Kagame also said investors should not overlook smaller economies because of their size.
"If any project, irrespective of the size, is feasible and looks profitable, the other problems to deal with are much simpler."
He also pointed to regional market integration as a way of expanding investment opportunities beyond individual countries.
"Certainly, there have to be policies, there have to be institutions that allow this to happen and that&039;s the responsibility of any government. So, we insist on governance and growing the strength of institutions and making sure that there is a connection between public and private sectors," he added.
Also on the panel were Jamaican Prime Minister Andrew Holness and Samoa’s Deputy Prime Minister Mulipola Anarosa Ale Molioʻo.
Efficiency key to development
Prime Minister Holness said inefficient government institutions and bureaucracy can hinder development, even where financial resources are available.
He said governments should focus on making public institutions more efficient to speed up project delivery.
"We need to start looking at how we make institutions more efficient. We need to start thinking of efficiency as a resource," he said.
He added that technology and artificial intelligence could help improve government efficiency, provided fairness and equity remain central.
The Samoan Deputy Prime Minister said small island states also play an important role in the global community
"We small islands also provide significant value and leadership to the global community. True influence is measured not by size, but by vision, determination and the ability to bring people together,” she said.
The CHOGM, running from November 1 to 4, brought together leaders from 56 Commonwealth member countries under the theme "Accelerating Partnerships and Investment for a Prosperous Commonwealth.”