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Changing climates, changing fortunes: what African elections mean for investors
Electoral cycles have long been a sticky issue for Africa’s business communities. Elections often evoke fears that a regime change will bring uncertainty and instability, two characteristics investors try to avoid in their portfolios.
These reservations aren’t unfounded: Kenya’s bungled 2007 election crippled the East African region and forced landlocked economies such as Uganda and Rwanda to bear the brunt of post-election chaos. Investors expect some inherent risk in emerging economies, but at some point, they draw a line.
