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Business / Economy

Outbreak making investors skittish

By Li Lianxing (China Daily) Updated: 2014-08-21 07:12

The World Health Organization insisted that the risk of contracting Ebola is quite low and it has so far declined to impose a travel ban to affected countries.

Travel restrictions may cause misunderstanding and fear among those who plan to visit or invest in these regions, according to African officials.

Outbreak making investors skittish
 Setting in train Africa's railways

Paul Lolo, Nigerian ambassador to the African Union, said: "Adopting measures that stigmatize citizens of affected countries will not yield any positive results and is not in keeping with our traditional African solidarity.

"What is needed is to put in place measures to prevent the risk of traveling passengers transmitting the disease to other countries. Banning (people from) affected countries from traveling will affect future international relations."

The current Ebola epidemic is the biggest and most complex that the world has experienced since the first human outbreak in 1976.

WHO, in partnership with the ministries of health in Guinea, Sierra Leone, Liberia and Nigeria, has reported 2,140 suspected and confirmed cases, including more than 1,300 laboratory-confirmed cases as of Tuesday.

However, the epidemic may be far worse than the reported figures, because some people are avoiding health facilities, said a statement by the AU.

"It's natural for potential Chinese investors to worry about the situation. Lagos is the largest city in Nigeria and all the confirmed cases are here," said Wu Tao, secretary of the commerce chamber and also an investment specialist serving Chinese customers at a bank in Lagos. "But what they don't know is that daily life goes on as usual here and if you take proper precautions, there is no chance to be infected."

Wu said that when the situation calms down, investors will quickly revive their plans, because the attraction of the large market potential in Africa, and Nigeria in particular, is incomparable.

"Many factories have been established in Lagos by Chinese companies in the past few years, and they have realized the importance of this city in this country, and of this country in this region," he said. "So to invest here is a smart choice if one wants to have a foothold in Africa."

Wu said that a lesson for investors is that with the deepening of regional integration in Africa, health and security risks should be taken into consideration when they make African investment plans.

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