From Zawya

East African countries have emerged as rising economic stars in the continent with Kenya, Tanzania and Mozambique in the midst of an impressive growth spurt.

But investors should also be wary of serious political risks emerging in the region.

Risk analytics and research firm Maplecroft’s Political Risk Atlas 2014 (PRA) identifies East Africa as an emerging flashpoint of geopolitical risks.

The region has been home to a number of political risk incidents over the past year. A terrorist attack on an upscale mall in the Kenyan capital Nairobi, which left 67 people dead, is just one example of the heightened political issues in the region. Kenya, is among the East African countries at risk, according to Maplecroft, and is ranked 24th globally.

Moody’s ratings agency concurs that the Westgate shopping mall debacle was a credit negative, especially as Somalia-based Al-Shabaab militants — which claimed responsibility for the attack — will continue to look for other opportunities to destabilize the country.

“We expect this high-profile attack to be credit negative and will adversely affect Kenya’s growth and fiscal revenues,” the agency said.

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Other East African countries also seem to have climbed up in the latest Maplecroft list compared to last year.

Eritrea (ranked 35th in 2014, compared to 43rd in 2013), Tanzania (61st, versus 77th), Mozambique (62nd versus 101st), has meant East Africa has eclipsed Central Africa, as Sub-Saharan Africa’s riskiest region.

Read more at Zawya