Makhtar Diop: World Bank Group research challenges view that emerging markets lack higher returns

Makhtar Diop: World Bank Group research challenges view that emerging markets lack higher returns
Emerging markets returns questioned by new research

New research from the World Bank Group challenges the common perception that investing in emerging markets is riskier without the potential for higher returns.

Makhtar Diop highlighted that International Finance Corporation (IFC) lending data shows competitive returns are possible even in fragile markets. According to Diop, higher risks can be priced and managed, which may unlock new opportunities in these markets.

Diop has previously discussed ways the IFC can help attract private investment into affordable housing and agribusiness in Ethiopia, following talks with the country's central bank governor (link). He also attended World Bank Group Meetings in Bangkok that focused on increasing private capital in emerging markets (link). These initiatives reflect ongoing efforts to mobilize private financing in sectors with growth potential.

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