The Commitment to Development Index ranks 27 of the world’s richest countries on policies that affect the more than five billion people living in poorer nations.
The International Finance Corporation wants to increase its development impact in fragile states. Currently, the IFC’s fragile-state portfolio mirrors that of overall foreign direct investment stocks in such countries: focused in extractive industries and mobile telephony. That suggests potentially limited value-added from the Corporation’s investments in terms of crowding in private capital. If the IFC is trying to increase its portfolio and development impact in fragile states, it should look for sectoral opportunities that share some of the features of mines and mobile investments but currently attract limited FDI.
Nowhere Left to Hide? Stock Market Correlation, Regional Diversification, and the Case for Investing in Africa - Working Paper 316
Overall, regional indices have become increasingly correlated with the S&P 500 index. Africa lags behind this trend some, and that lag could present opportunities for investors and policymakers.