The group’s 15th annual Risk Map – a country-by-country report detailing the various political and security risks likely to affect foreign companies – says that political and/or security risk in many key African countries is waning. Notably, the risk profiles of South Africa are now on par with the US and Europe.

The only African countries still regarded as high risk are Zimbabwe, Somalia, Liberia, Ivory Coast, Togo and Guinea. Control Risk says that the likelihood that foreign companies will face security threats in these countries is high and aggravated by the lack of political institutions.

Even so, Standard Bank group economist Goolam Ballim says that the report’s timing is good news, as global investors are being forced to explore new markets.

Ballim says that poor investor returns in flailing developed economies, including Europe and the US, have led to increased liquidity in global capital markets.

Consequently, another analyst says, considering that infrastructural development projects are increasing exponentially – spurred by exploration for natural resources – Africa is increasingly becoming the most attractive proposition for investors.

Says Ballim: "Even conservative investors are extracting high returns on the continent."

The United Nations Commission for Trade & Development echoed that in its Global Investment Report 2004 earlier this year. It reported that though fixed direct investment into Africa increased 28% last year, the prospects for FDI growth were even better this year