One of the most discerning chroniclers of sub-Saharan Africa is the Financial Times of London, which maintains an impressive web page on the region, with links to special reports as well as daily news. The newspaper, printed on distinctive paper, reports the sunnier news today that the African “continent is at the heart of the latest surge of enthusiasm to hit emerging markets. In their search for yield, investors, bankers and companies are focusing on opportunities in some of the most far-flung corners of the world.”
The news about “hot money” flowing into Africa is great, because it shows that higher aid flows actually compete with higher capital flows, so that aid must clearly be linked to outcomes that private capital, on its own, canâ€™t deliver. There are dangers to those in-flows, however, which governments with weak monitor capacity canâ€™t track on their own. And thatâ€™s another role for the NGO/foundation sector â€“ to promote specific initiatives that help markets behave more fairly than they otherwise might.