A report commissioned by Jersey Finance found that Africa’s $85trn annual global gross domestic product will fall $11.4trn short of the funds required to support its doubling working age population and to “quadruple its living standards”.
The organisation said that, while domestic profits and local governments will be able to raise nearly half of the remaining $6.1trn, international financial centres such as Jersey can help to raise the remainder.
It said that Jersey could provide protection for investors, protection for African wealth, efficient cross-border investment pooling, and efficient and robust regulation and tax neutrality.
Geoff Cook, chief executive of Jersey Finance said international financial centres have a “fundamental” role in facilitating direct foreign investment.
“Jersey is in a prime position to offer the continent the assistance it needs, from access to a greater amount of investment to establishing environments conducive to entrepreneurship,” he added. “Jersey can offer a safe business environment while ultimately helping Africa fulfil its economic potential.”
The report said Jersey must work to increase its, currently, “small” business with Africa, which totals between £11.4 and £20.5bn. This amounts to between 1% and 1.8% of total investments into the island, and primarily comes from South Africa and Kenya.
It added that allegations of international finance centres facilitating “unsavoury, immoral or illegal economic activity in developing nations” do not bear scrutiny.
“In reality, few jurisdictions work harder than Jersey to stamp out bribery, corruption and illicit activity anywhere in the world – as the International Monetary Fund and Organisation for Economic Cooperation and Development reviews testify,” it said.
In October, International Adviser reported that product providers such as VAM and Alquity, and IFAs such as Austen Morris were stepping up their activity in a “burgeoning” Africa.
