China's investment in Africa is characterized as stable and strong, with a significant annual increase in FDI inflows, promoting mutual benefit and win-win results for both China and Africa.

"Africa has significant natural resources in the mining sector, including minerals such as copper, platinum, lithium, nickel, and cobalt."

Africa has approximately thirty percent of the world's key minerals.

The total global foreign direct investment in 2021 was 1.65 trillion USD, according to the United Nations Conference on Trade and Development.

Fintech is the most active sector for venture capital investment in Africa, with startups such as OnePipe and Nokwary utilizing AI for various purposes, including fraud detection, biometric verification, and conversational transactions.

The agricultural sector is a promising area for investment in Africa, as it is an important sector needed by the market.

South Africa is identified as a key country in the region for foreign direct investment, which could imply its significance in trade partnerships, potentially including China.

The value of new projects announced in Egypt in 2021 was $5.6 billion.

India has invested heavily in infrastructure development in Africa, with a focus on reviving the Asia Africa Growth Corridor project.

China's investment in Africa is characterized as stable and strong, with a significant annual increase in FDI inflows, promoting mutual benefit and win-win results for both China and Africa.

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Content: People 's Network > > International
Foreign Ministry: The so-called traceability report of the United States is a political report, a dumping report, and a false report
August 30, 2021 20: 06 | Source: People's Daily Online - International Channel
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BEIJING, Aug. 30 (Xinhua) -- According to the website of the Ministry of Foreign Affairs, Foreign Ministry spokesman Wang Wenbin presided over a regular press conference on the 30th.
The press conference is as follows:
Last week, the China-Africa Non-Governmental Chamber of Commerce held a press conference on the "Report on Chinese Enterprises' Investment in Africa", which showed the participation of Chinese enterprises in Africa's economic development.
How does the Ministry of Foreign Affairs view the role of Chinese enterprises in Africa's economic and social development?
Wang Wenbin: Last week, the China-Africa Non-Governmental Chamber of Commerce held a very successful launch of the "China Enterprises Investment in Africa Report", people from all walks of life gave positive comments, and it is generally believed that Chinese enterprises invest in Africa for mutual benefit and win-win, in line with Africa's development needs, and high-quality China-Africa investment cooperation can be expected in the future.
There are several characteristics in the process of Chinese enterprises investing in Africa and helping Africa's economic and social development: First, China's investment in Africa is stable and strong.
Over the past 20 years, China's FDI inflows to Africa have increased by more than 25 percent annually.
Under the situation of the epidemic, China ’ s investment in Africa increased from 2.71 billion US dollars in 2019 to 2.96 billion US dollars in 2020. Chinese enterprises “rooted in Africa ”,“ cultivated Africa ” and “helped Africa ”, and used real industrial cooperation to promote the industrialization process in Africa and create jobs for Africa.
Second, the development advantages of China and Africa are highly complementary.
China has the advantages of capital, technology and development experience, and China-Africa cooperation has greatly improved the efficiency of resource allocation.
Labour-intensive manufacturing and park construction are the traditional advantages of Chinese enterprises to invest in Africa, and new fields such as high-end technology manufacturing, medical and pharmaceutical, digital economy and aviation industry are also becoming new hot spots for Chinese investment in Africa.
Third, China-Africa investment cooperation is mutually beneficial and win-win.
China is striving to build a new development pattern based on the domestic macro-cycle and the domestic and international double cycles mutually promote each other.
Chinese enterprises' investment in Africa is conducive to unblocking the global industrial chain and promoting two-way exports.
While realizing their own development, Chinese enterprises have made outstanding contributions to social stability and economic prosperity in African countries by actively carrying out technology transfer, strengthening local procurement and employing local staff.
The Chinese government has always encouraged enterprises to actively cooperate with Africa's development strategy, integrate into the local society, take the initiative to practice social responsibility, give back to the local people, and contribute to the independent and sustainable development of African countries.
I believe that the prospects for China-Africa investment cooperation are bright and promising, and that the quality and quantity will be raised in the future, so as to push China-Africa pragmatic cooperation to a new level.
Agence France-Presse: Can you confirm the news that US President's special envoy on climate issues Kerry will visit China in September?
If the information is true, can you provide a specific date and what topics will he discuss with the Chinese side?
WANG Wenbin: Regarding the question you mentioned, I have no information to announce at this time.
The conference on the Biological Weapons Convention (BWC) will be held today.
In 2001, the United States withdrew from the agreed multilateral verification mechanism for biological weapons, and has so far opposed the resumption of negotiations.
What is China's comment on this?
Wang Wenbin: As you mentioned, the conference on the Biological Weapons Convention (BWC) will begin today.
China has always firmly upheld the aims and objectives of the Biological Weapons Convention (BWC).
Like most countries, China stands for the establishment of a multilateral verification mechanism within the framework of the convention, which is the most effective way to ensure compliance and build mutual trust.
At this meeting, China will again call for the resumption of negotiations on the verification mechanism, and I believe that the vast majority of countries will also put forward the same proposition.
In fact, the United States is the world ’ s most biologically militarized and least transparent country.
If the United States had not withdrawn from the agreed negotiation process in 2001, and had so far opposed the resumption of negotiations, this mechanism would have been established long ago, and all countries' biological activities, including laboratory activities, could have been placed under multilateral supervision and verification.
It is worth noting that the United States has repeatedly advocated the investigation of Chinese laboratories on the issue of the origin of the new coronavirus, which is contrary to the position that the United States has maintained so far on the issue of biological laboratory verification.
Since the United States has previously claimed that activities in the biological field are technically unverifiable, the call for an investigation of the Wuhan laboratory is pure political blackmail.
On the other hand, if the United States believes that it is feasible to investigate the Wuhan laboratory, there is no reason to oppose the establishment of a multilateral biological verification mechanism, let alone refuse to open the Fort Detrick base and more than 200 biological laboratories around the world to be investigated by the international community.
"This contradiction shows that the so-called openness and transparency claimed by the United States is nothing more than a lie," he said.
It is the United States itself that is least open and least transparent about tracing and establishing a multilateral verification mechanism for biological weapons.
Chinese State Councilor and Foreign Minister Wang Yi said in a telephone conversation with US Secretary of State Colin Blinken yesterday that China firmly opposes the investigation report on the traceability issue issued by the US intelligence agencies.
What is China's comment on this?
Wang Wenbin: Chinese Vice Foreign Minister Ma Zhaoxu and Vice Minister Zeng Yixin of the State Health and Health Commission have respectively expounded China's position on this issue through speeches and interviews.
The so-called traceability report issued by the US intelligence agencies is an anti-science political report, a dumping report under the guise of traceability and shirking the responsibility of the United States for its own failure to fight the epidemic, and a false report that fabricates excuses and splashes dirty water on China.
The report is another example of how the United States deceived and misled the international community.
The US side should explain clearly why it has resorted to using intelligence agencies to trace the source instead of relying on scientists.
Is the use of intelligence agencies to trace the source, in the end, to find the truth or to fabricate the "truth"?
The United States should also explain clearly why it has repeatedly entangled the theory of laboratory leakage without scientific basis. Even if all the intelligence forces can not find evidence, the United States still does not give up the theory of laboratory leakage.
This is not political manipulation, what is it?
The United States should also explain why the United States has the most advanced medical equipment and technology in the world, but it is the country with the largest number of infections and deaths in the world.
Since the outbreak of the epidemic, the United States has withdrawn from the WHO at a critical moment in the fight against the epidemic, banned the export of vaccines at a time when the world is in urgent need of vaccines, and hype the theory of laboratory leakage after China and the WHO successfully conducted the first stage of traceability research.
What the United States has done has not only led to the complete failure of the United States in its own fight against the epidemic and caused the American people to pay a painful price, but also seriously poisoned the atmosphere of international cooperation in tracing the source, which has increasingly deviated from the correct direction.
The United States has become the most destructive factor of international cooperation against the epidemic and the biggest obstacle to scientific traceability.
People cannot help but ask: Is the life of the American people important, or is the political self-interest of the politicians important?
Is the health of the people of the world important, or is the geopolitical considerations of the United States important?
When will the United States continue to politicize the fight against the epidemic and trace its origins?
In the face of the virus, the fate of all countries is related to the common and solidarity.
To fight the epidemic, we need to adhere to science, unity and cooperation.
The Chinese side has always adhered to cooperation in the fight against the epidemic and traced the source scientifically, always opposed the erroneous practice of politicizing the fight against the epidemic and tracing the source, and has always been committed to promoting international cooperation in fighting the epidemic and working with other countries to overcome the epidemic at an early date.
We urge the US side to cherish life and respect science, stop playing tricks of dumping blame under the guise of traceability, and return to the track of cooperation and scientific traceability as soon as possible.
CCTV reporter: It is reported that Christopher Ford, former assistant secretary of state of the US State Department, has published an open letter, exposing the process of "laboratory leakage theory" concocted by a small group of people in the US State Department.
What is the spokesman's comment on this?
WANG WENBIN: I have noticed the relevant reports.
The open letter, which was issued by former Assistant Secretary of State Ford, is another powerful proof that some US politicians have turned their backs on science, concocted lies and smeared China on the issue of traceability.
According to Ford ’ s open letter published in June, from December 2020 to early January 2021, at the behest of former US Secretary of State Mike Pompeo, Yu Maochun, the US Department of State ’ s Office of Policy Planning, directed Deputy Assistant Secretary of State Thomas Dinano and advisor David Asher to continue to preach to the departments of the US State Department, bypassing the expert assessment of biological science and biological weapons. The new coronavirus is a biological weapon that the Chinese government has deliberately released. ”
After Ford emailed the two men several times about the need to organize scientists to conduct a serious evaluation, AVC convened an expert meeting in January.
Participating experts pointed out key errors in the relevant documents at the meeting site.
Ford later emailed a number of senior State Department officials to inform the meeting, pointing out that there are major problems with the AVC's judgment.
Ford speculated that the US State Department may have made no mention of the "biological weapon theory" in the "Fact Sheet: Activities of the Wuhan Virus Research Institute" published on January 15 this year, and instead put forward the speculative claim that the new coronavirus may have originated from an accidental leak in the laboratory.
It can be seen that some US politicians have completely ignored the scientific basis and the factual basis, and completely turned the origin of the virus into a political manipulation.
Their real purpose is to throw dirty water at China by all means. If the "biological weapons theory" does not work, they will resort to the "laboratory leakage theory" instead of the "laboratory leakage theory", which has been seen by more and more people of insight and will surely meet with more and more strong opposition from the international community.
French President Emmanuel Macron has said that France, Britain and Germany will propose the establishment of a safe zone in Kabul, where Afghans at risk can stay until they are evacuated from Afghanistan.
Does China support the entry of peacekeeping troops into Afghanistan to help establish a safe zone?
Wang Wenbin: I have taken note of relevant reports and reports that the Afghan Taliban have rejected the proposal to establish a safe zone.
China believes that the international community should respect the sovereignty, independence, territorial integrity and will of the Afghan people.
If the Security Council and the international community take any action, it should help ease the tension and help the Afghan situation to transition smoothly.
According to reports, the US military in Okinawa recently discharged sewage containing organic fluoride into sewers.
Japan lodged a strong protest with the United States, demanding that the US troops stop their emissions.
What is China's comment on this?
Wang Wenbin: It is also the discharge of sewage, and Japan's attitude toward the discharge of sewage by the US military in Japan is very different from that of the discharge of nuclear contaminated water by its own government.
It seems that Japan only attaches importance to the protection of its own environment and ignores the protection of the global marine ecological environment.
The Japanese side has the right to oppose the discharge of sewage by the US troops stationed in Japan, and it has the responsibility to respond to the concerns of the international community, especially its neighboring countries, and not to initiate the discharge of nuclear contaminated water into the sea without authorization until full consultation and agreement has been reached with all relevant stakeholders and international institutions.
In the end, self-serving practices on environmental protection will only harm others.
China International Television reporter: It is reported that three Chinese students were checked by the United States when they entered the United States at the Houston airport recently, and were subsequently found to be likely to endanger the national security of the United States.
Is the Ministry of Foreign Affairs aware of this?
Wang Wenbin: On August 15, when three Chinese students entered the United States with legal visas at the airport in Houston, the United States investigated and sent back to China, on the grounds that the three were suspected of having military backgrounds because they were funded by the Chinese government or because they found photos of military training in their personal mobile phones.
The Chinese side is strongly dissatisfied with and firmly opposed to this, and has made solemn representations to the US side on this issue.
The United States has used the pretext of catching the wind and catching the shadows and even being absurd to repatriate Chinese students, seriously harming the legitimate rights and interests of Chinese students studying in the United States, and seriously undermining normal cultural exchanges and educational cooperation between China and the United States.
This discriminatory practice against foreign students from certain countries completely runs counter to the US self-proclaimed concept of openness and freedom and its attitude of "welcoming Chinese students," and runs counter to the trend of the times for international personnel exchanges.
The Chinese side urges the US side to correct its mistakes, stop using various pretexts to restrict and suppress Chinese students for no reason, and stop its words and deeds that obstruct the cultural exchanges between China and the United States.
China will continue to support Chinese students studying abroad in safeguarding their legitimate rights and interests in accordance with the law.
A report by the International Atomic Energy Agency (IAEA) said that the Democratic People's Republic of Korea (DPRK) is showing signs of restarting its Yongbyon nuclear reactor.
What is China's comment on this?
Wang Wenbin: China's position on the Korean Peninsula issue is consistent and clear.
It is hoped that the parties concerned will adhere to the direction of political settlement of the Korean Peninsula issue and find an effective solution to each other's concerns in a balanced manner in accordance with the "two-track parallel" approach and the principle of proceeding in stages and synchronously.
Kyodo News Agency: On the issue of safe areas in Afghanistan, China's position is that it does not support France's proposal to establish safe areas.
Wang Wenbin: I would like to reiterate China's position on relevant issues.
We have always believed that the international community should respect the sovereign independence, territorial integrity and the will of the people of Afghanistan.
Any action taken by the Security Council and the international community should help ease the tension and facilitate a smooth transition of the situation in Afghanistan.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Jacques Rogge, former president of the International Olympic Committee (IOC), has died at the age of 79.
What is China's comment on this?
President Rogge is an outstanding leader of the international Olympic movement and an old friend of the Chinese people.
He made outstanding contributions to promoting the development of the Olympic Movement, deepening the friendly cooperation between the IOC and China, and successfully hosting the Beijing 2008 Olympic Games.
We express our deep condolences on his tragic death and extend our sincere condolences to his family.
(Editor: Xu Xiangli, Chang Hong)
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How has China's FDI in Africa changed from 2003 to 2019?

"Africa has significant natural resources in the mining sector, including minerals such as copper, platinum, lithium, nickel, and cobalt."

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Content: ECONOMY
The mining investment system allows the establishment of 100% foreign-owned companies
Thank you for reading the news of the mining investment system allows the establishment of companies owned by foreigners 100% and we assure you that we always seek to satisfy you and now with the details
Deputy Minister of Industry and Mineral Resources for Mining Affairs Khalid Al-Mudaifer stressed the vital role that the emerging new mining zone, which extends from Africa to Central and West Asia, will play in meeting the global demand for minerals.
Speaking at the Indaba 2023 African Mining Conference in Cape Town, South Africa, entitled “Africa ’ s Partners: Saudi Arabia ”, Al-Mudaifer said:“ We in the Kingdom, along with many countries in the world, are optimistic about minerals and metals on the continent in 2023, pointing to the focus on the mining sector in Africa through attention to energy conversion minerals such as: copper, platinum, lithium, nickel and cobalt, to name a few.
He added that the mining investment system in the Kingdom provides incentives for investors, as it adopts very equal and competitive tax rates for local and international companies, and an easy, fair and transparent way to establish 100% foreign-owned companies.
The Kingdom is investing billions to make geological data as detailed, accessible and accessible as possible, to support economic development around integrated value chains from exploration to industrialization.
He stressed that global crises will continue to drive local risks, which in turn leads and forms new approaches to partnerships, processes and industrial integration, pointing to the need to form partnerships and cooperation to meet these challenges.
In his speech, Al-Mudaifer highlighted the tremendous opportunities available in the Kingdom and its efforts in developing the mining sector, modernizing the mining investment system, which constitutes the sector ’ s regular infrastructure, providing a clear, transparent and accessible environment for investors in the mining sector, making geological data available to investors, improving basic infrastructure, as well as providing incentives to attract investors.
He called on the conference participants, companies and those interested in the mining industry to work together to overcome the challenges facing the sector to make the most of the rich geological potential of the Kingdom and the region stretching from Africa to Central and West Asia to create a vibrant, successful and sustainable mining sector.
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Africa has approximately thirty percent of the world's key minerals.

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Content: A promising future awaits Africa in the semiconductor industry
A partnership agreement between the U.S. Trade and Development Agency (USTDA) and Kenya to promote semiconductor manufacturing is a “long-awaited step toward involving the African continent in global semiconductor supply chains. ”
East and West Africa offer significant opportunities for the United States and the West in general to secure critical supply chains and promote what could become a new arena in the global semiconductor space that will strengthen partnerships with the continent in a complex geopolitical landscape.
The economies of Kenya, Nigeria, Rwanda and Ghana “represent fertile ground for investment, innovation and growth in semiconductor manufacturing, and these countries can become vital hubs in a global network that requires flexibility and adaptation to the flow of billions of dollars to national semiconductor markets, such as in the United States, South Korea, China and the European Union. ”
The U.S. is developing its ability to manufacture semiconductors domestically through direct investments in projects across the supply chain worth $327 billion over the next 10 years, the report said.
Based on these figures, the report considered that such cooperation would “help make the most of resources and capital, protect supply chains from instability, and promote the exchange of knowledge and information to promote innovation and the development of semiconductor technologies. ”
According to the report, huge growth awaits the semiconductor industry to reach $1 trillion by 2034, and the report cited investments in this area in India, Costa Rica and Mexico to enhance manufacturing capacity, develop the workforce, and continuously stimulate innovation and investment.
Based on these cases, the report suggested that Africa could benefit from such gains, but noted that the continent “may not be able to manufacture semiconductors in the short term, but can participate in supply chain activities such as testing, quality assurance and programming. ”
Opportunity and Possibilities
Africa contains a third of the vital metals needed to manufacture quantum computer semiconductors that cannot be made without them, such as scandium, yttrium, lanthanum and cerium, which are essential for chip production, the report said.
These vital minerals are important in consumer electronics, computers, telecommunications, renewable energy, electric vehicles and defense systems, he said, noting that "there is an opportunity to create a sustainable ecosystem in Africa that reduces dependence on other sources of abundance of these resources in Africa and places them in a strategic position."
Another advantage the report points to is the “availability of raw materials locally, which would significantly reduce supply chain risks and costs to manufacturers, including fuels, as well as import and export duties, and the risk of unforeseen geopolitical events or natural disasters and supplier problems. ”
As semiconductor value chain costs continue to rise in existing markets, Africa offers a promising solution with competitive pricing, innovation and untapped innovation.
The continent, known for its scenic landscapes and wildlife, may soon become the silicon savanna for semiconductor design and testing, reducing dependence on China for bio-materials.
African countries are likely to see growth that “encourages prioritization of research and development within their borders, enabling them to retain local talent and create jobs in a challenging market for STEM graduates. ”
The human element
Africa has beyond resource extraction: young people with technological skills provide fertile ground for innovation and design.
Potential collaboration between research centers in Nairobi, Kenya or Lagos, Nigeria, and established Western companies could lead to further advances in chip technology.
He points out that investments in education, infrastructure and technology are transforming Africa into a center of innovation and excellence in manufacturing and inspiring a new generation of engineers and technologists.
As global demand for semiconductors increases, Western countries should look to Africa as an important partner in creating a robust, diverse and resilient semiconductor ecosystem and supply chain.
“It is time for Africa to shine in the field of semiconductors with the attention of the global community. ”
Source: Al Jazeera + Websites

The total global foreign direct investment in 2021 was 1.65 trillion USD, according to the United Nations Conference on Trade and Development.

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Global FDI reached US $1.65 trillion last year, surpassing pre-pandemic levels
According to the latest report of the United Nations, global foreign direct investment (FDI) surged 77% last year from the previous year, rebounding strongly from the impact of the COVID-19 epidemic and surpassing the pre-epidemic level, but the distribution of overseas funds is uneven, mainly concentrated in the developed countries of Europe and the United States, followed by the developing countries, and the poorest countries.
The United Nations Conference on Trade and Development (UNCTAD) released data on the 19th, the total overseas investment of global enterprises in 2021 reached 1.65 trillion US dollars, up from 929 billion US dollars in 2020, of which nearly three-quarters went to developed countries.
According to the report, FDI from rich countries reached an estimated $777.7 billion last year, three times the previous year.
FDI in the United States jumped 114% from the previous year, and in Europe by more than 80%, thanks to the surge in cross-border M & A transactions (M & A).
FDI inflows to developing countries increased by 30 per cent last year to close to $870 billion, including accelerated growth in East and Southeast Asia, a return to near pre-pandemic levels in Latin America and the Caribbean, and an increase in West Asia.
As for the poorest countries, more foreign capital flowed into Africa last year than in the previous year.
FDI by most African firms has increased.
In terms of industry, driven by favorable long-term financing conditions, economic stimulus packages and overseas investment plans, the infrastructure sector was a big winner last year, with financing increasing by 53% in several years and 91% in value, mostly in high-income regions and in Asia, Latin America and the Caribbean.
In contrast, new investment in industry and global value chains was weak last year.
The number of greenfield investments announced last year was almost flat (down 1% year-on-year), but the amount increased slightly by 7%.
New investment plans in global value chain-intensive industries, such as electronics, fell further.
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Fintech is the most active sector for venture capital investment in Africa, with startups such as OnePipe and Nokwary utilizing AI for various purposes, including fraud detection, biometric verification, and conversational transactions.

Title:

Content: In 2023, standards became higher than ever for global tech. Customers want to be able to buy something in two clicks but still need in-person customer service. Workers want to work digitally, ideally from a beach somewhere, while maintaining a connection with their colleagues. And the truth is these standards are unlikely to get lower soon.

In Africa, the tech scene hasn’t been any less dramatic. It was, in many ways, a market correction. Several startups shut down, while many others survived by bone-deep cost-cutting or mergers and acquisitions. Founders and investors have gone from chasing Silicon Valley-esque growth to seeking a balance with the African market. Between 2020 and 2023, African tech went from the “peak of inflated expectations” point to the “plateau of productivity” side of Gartner’s hype cycle.

Now, what’s next? That’s what everyone wants to know as we enter a new year. Predicting the future is hard and risky. But it’s even harder in the digital tech industry because, as we’ve seen in the past three years, things change fast and dramatically. However, 2023 gave several pointers to trends we should all pay attention to in the new year.

Crypto/Web3

2022 was a rough year for the crypto market. Everything went wrong, from Terra’s downfall to FTX’s scandal. But 2023 was a lot better as Bitcoin ended the year over 150% higher than where it started. The Solana blockchain also made a dramatic comeback, with its token rising over 1000%.

Why does this matter? Because price is still the main driver of the crypto ecosystem. Funding pours into startups when prices are high and dry up when prices are low. It also means the hype bubble will likely return because markets become irrational in the face of high prices.

Africa is the fastest-growing cryptocurrency market among developing economies, primarily because people seek to hedge against inflation. Young people are drawn to low-barrier opportunities to generate wealth, which is crypto’s biggest use case today.

Africa’s regulatory environment is also slowly buying into crypto. In December, Nigeria’s central bank lifted a ban on cryptocurrency transactions, saying global trends had shown a need to regulate such activities.

Artificial intelligence

AI has become the rave of the moment, thanks to OpenAI’s breakthrough with ChatGPT. The chances that an image or text you see on social media are products of generative AI are higher than ever. Every big tech player is in the race for AI dominance. Google launched Gemini in December, a few weeks after Elon Musk’s xAI launched Grok, another ChatGPT competitor.

One in every four dollars that went into the pocket of an American startup was related to AI, per Crunchbase data. According to McKinsey data, AI startups garnered over five times as much funding in the first half of 2023 as they did over the same period in 2022. Global demand for talent in this section also spiked in 2023. LinkedIn job postings that mention AI or generative AI have more than doubled since 2021.

In Africa, we are seeing more startups either focus on AI or apply it to their processes. For instance, OnePipe, a Nigerian fintech, uses artificial intelligence for fraud detection and prevention and biometric verification for customer KYC implementation. It also uses natural language processing for conversational transactions. Nokwary, a Ghanaian startup, uses speech recognition and conversational user interfaces to enable visually impaired people and those who can’t read and write to interact with banking apps and systems through spoken commands.

The biggest challenge to an AI boom in Africa is data. However, this poses a huge opportunity for research and data collection companies in the continent.

Mergers and Acquisitions

Many startups shut down between 2022 and 2023, either because they couldn’t raise more cash or because tough economic times got the better of them. But that wasn’t the only trend that emerged. Many others survive by getting acquired. Nearly 70 acquisitions have happened between 2022 and 2023, according to data from The Big Deal and BD Funding Tracker. Some notable deals were Risevest and Chaka, BioNTech and InstaDeep, Bitmama and PayDay, and FairMoney and PayForce.

Mergers and Acquisitions will likely remain a trend for as long as valuations are low. Over the last two years, startups have been more cautious about bloating their valuations, and investors have kept the same sentiment. It’s partially why we haven’t recorded new unicorns in a minute. MNT-Halan was the only new entrant in the last two years.

This also creates an opportunity for African startup marketplaces, which will replicate Acquire.com to make acquisition easy for startups with solid products but low clout.

International work for Africans

Many African countries saw their currencies devalued in 2023. Inflation rates have also spiked in many economies. This creates a stronger appeal for them to earn foreign currencies and an [almost worrisome] opening for Westerners to find cheap labour in Africa. This is crucial because wage rates are rising in China and India, making it increasingly expensive for companies to outsource services there.

Studies by Bloomberg show that China’s upper-middle class now dominates, with over 200 million urban households having disposable incomes of $16k — $34k. Meanwhile, many Sub-Saharan economies have seen their middle-class shrink in recent years.

Also, there aren’t enough opportunities for young people to work remotely in Africa. Ten to twelve million young Africans enter the labour market each year, and an estimated one-third of the 600 million young people entering the global market by 2030 will be young Africans.

This trend will create opportunities for new approaches to apprenticeship or employment matching. It also means startups focused on building tech talent will likely see growth in 2024.

New regional preferences

In 2024, investors could reevaluate their regional strategies in response to changing macroeconomic and political conditions. Per the EIU, fifteen African countries have elections next year, and investors will observe their outcomes keenly. Elections are fraught with risk, especially in regions where armed conflict is rampant. The EIU notes that elections in Algeria, Egypt, Ghana, and South Africa will add to political risk, which could have long-term implications on where investors put their money.

An AVCA survey revealed that LPs favoured investing in West Africa while GPs leaned towards East Africa. The data aligns with this: between 2019 and 2023, per The Big Deal, there were over 700 recorded deals worth $1m or more. West Africa led the pack with 246, East Africa with 175, Northern Africa with 160, Southern Africa with 147, and Central Africa with 14. Depending on the degree of confidence, the numbers could realign with investors becoming more risk-averse. It’s all “wait and see” going into 2024.

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What trends are emerging for African startups in 2022?

The agricultural sector is a promising area for investment in Africa, as it is an important sector needed by the market.

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Content: Urgent.
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Through the new company.
« Immigration » wins the confidence and savings of Egyptians abroad
The establishment by the Ministry of Immigration of an investment company for Egyptians abroad came in response to their demands and desire to invest in their homeland after many years of exile.
He directed the political leadership to provide investment opportunities for them, achieve Egypt's future vision and integrate them into development plans.
The nascent company, which will follow the sovereign fund of Egypt, was a dream of many, and aims to attract expatriate savings of foreign exchange to invest in several sectors that Egyptians abroad have been keen to choose for themselves.
Although some Egyptians working abroad are afraid to invest in Egypt, especially after the devaluation of the pound, the IMF forecasts that net foreign direct investment flows to Egypt are on an upward trend, and are expected to reach $17.1 billion in 2024-2025.
According to the World Investment Report 2023 issued by the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment flows in Egypt rose to $11.4 billion in 2022, compared to $5.12 billion in 2021, achieving a growth rate of more than double 122%.
According to the report, Egypt ranked first in terms of flows to the African continent, accounting for 25% of the total foreign investment flows to Africa in 2022.
Egypt ’ s sovereign wealth fund was recently ranked 41st out of 100 global sovereign funds in the first quarter of 2021, according to GWorld Investment Analysis, and joined the list of the top 50 global sovereign funds, ranking 47th globally and 12th in the Arab world, according to the latest update of sovereign wealth funds published by the Sovereign Wealth Fund Institute in 2023.
Ambassador Soha Jundi, Minister of State for Migration and Egyptian Affairs Abroad, sought to establish a company for Egyptian investments abroad, after the approval of the Prime Minister, which will be launched soon, and made efforts and meetings with Egyptian investors and businessmen abroad, to provide the opportunity for expatriates to participate in development efforts.
The minister stressed that the company ’ s issued capital is targeted to reach $1 billion, and paid up $100 million.
The company will participate with stakes in high-return national projects while offering its shares abroad, and revealed the existence of 10 founders of the company, and his law office will take over the formation and establishment of the company.
For their part, a large number of Egyptians abroad welcomed the establishment of an investment company, while investors called for the need to expand the issuance of the golden license, to open more investment areas for expatriates.
A third party has expressed concern about the instability of the economic situation.
Abeer Mahmoud, President of the European Egyptian Women's Union for Egyptian and Arab Women in the Netherlands, said that the establishment of the company for expatriates is an opportunity to invest in front of many, must be exploited well to benefit everyone, and achieve the desired, and I believe that it will attract the attention of expatriates to invest their money.
Mahmoud proposed the establishment of a tourist village for Egyptians abroad with European specifications, and that village will attract the attention of the world to invest in Egypt.
The company is a good step to invest in Egypt, and the market is a gain and loss, and the diversity of investment between industrial, agricultural and tourism makes it a distinct company because it is important sectors and needed by the market, and we are in dire need of high quality products, while one of the founding businessmen of the company Egyptians Abroad to tighten its grip on the market. black and parallel economy so that we can produce and export quality products.

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Content: People 's Network > > International
The magnetic force of attracting foreign investment in Arab countries is enhanced (global hot spot)
This reporter is ordinary.
August 10, 2023 08: 55 | Source: People's Daily Overseas Edition
Small number
A Yemeni Airlines passenger plane carrying about 270 people took off from Sana'a International Airport to Jeddah, Saudi Arabia's Red Sea coastal city.
It was the first commercial flight in seven years from Yemen's Houthi-controlled capital to Saudi Arabia.
Photo Passengers waiting at Sana'a International Airport.
Xinhua / Reuters
Recently, the Arab Investment Guarantee and Export Credit Agency released the 38th Annual Investment Environment Report for the Arab States in 2023 (hereinafter referred to as the "Report").
According to the report, the number of direct foreign investment projects entering the Arab countries in 2022 increased by 74% to 1,617 projects, and the amount of investment increased by 358% to 200 billion US dollars.
This trend is expected to continue in 2023.
Increased investment attractiveness
The report published by the Arab Agency for Investment Guarantee and Export Credit, citing data from the FDI Markets database, shows that the number of foreign projects entering the region increased by 28 per cent in the first quarter of 2023 compared with the same period in 2022, and the amount of investment increased by 70 per cent to $74 billion.
According to the report, the UAE attracted 923 foreign direct investment projects last year, ranking first among Arab countries.
From an industry perspective, the renewable energy industry ranked first in investment spending, accounting for 60% of the total; the software industry led in the number of projects, accounting for 23.4% of the total.
The report pointed out that in 2022, inter-Arab investment continued to maintain a growth trend, with the number of investment projects increasing by 84% to 245, and the amount of investment increased by 623% to 45.6 billion US dollars.
In May this year, at the UAE International Investment Conference, the British “Investment Monitoring ” company released a report entitled“ Greenfield Investment in the Middle East and Africa in 2022 ”, saying that foreign direct investment in all regions of the world in 2022 is on the rise.
Compared with before the epidemic, the Middle East and Africa region has become the fastest growing region in the world to attract foreign direct investment, and the Middle East has almost doubled its foreign direct investment, while the African region has increased by one third.
According to the report, more than 100 countries and regions invested in the Middle East last year.
The UAE, Saudi Arabia, South Africa, Egypt and Qatar are the top five countries in the region.
“We see the Middle East emerging as a major destination for companies and business investors seeking growth opportunities across a wide range of industries. ” Mamern Sbergh, president of Encounter Middle East, has a long-standing interest in the region ’ s economic dynamics.
He said that in recent years, the Middle East has continued to show openness to foreign investors and the overall trend of investment environment has been positive.
Li Weijian, a researcher at the Institute of Foreign Policy Studies of the Shanghai Institute of International Studies, said in an interview with our reporter that in the past, there was also partial cooperation among Arab countries, but the scale was not large; now, there are overall changes in cooperation among Arab countries, which are of particular concern.
Zhang Chuchu, associate professor of the School of International Relations and Public Affairs of Fudan University and deputy director of the Middle East Research Center, said in an interview with our reporter that Arab countries have two characteristics: First, the proportion of investment in the global South is increasing; Second, the field of attracting direct foreign investment is more diversified.
Huge development potential
"The attraction of investment is a barometer of the political security environment and the economic development environment of a region and a country," Li said. "In the external environment, the influence and leading role of the United States in the region has decreased, and the strategic autonomy of Arab countries has increased.
The Arab countries have clearly recognized that the biggest challenge facing them is how to develop their economies, not security threats from one country.
In addition, the Arab countries are also actively creating a favorable regional environment in order to get rid of the single oil economic model and attract foreign investment.
Arab countries have a unique advantage in attracting foreign investment.
Zhang Chuchu said that one is the geographical advantage.
The Arab countries straddle the two continents of Asia and Africa, connecting the Indian Ocean and the Atlantic Ocean, and guarding the key maritime transportation routes of East and West, are an important plate and key force in the current global pattern, and are also an important hub connecting the three continents of Asia, Europe and Africa.
The second is market value.
Arab countries include the world's fastest-growing economies such as Saudi Arabia, the United Arab Emirates and Qatar, as well as countries with large population densities such as Egypt, and most Arab countries have a relatively high proportion of young people, and the regional market is full of vitality and potential.
The third is energy status.
Arab countries include a large number of oil and gas producers.
4 is political support.
The Arab countries are committed to transforming the single economic structure, putting forward strategic plans such as the Saudi Vision 2030, the UAE Vision 2030, Kuwait Vision 2035, and Egypt Economic Revitalization Plan to achieve economic diversification and enhance economic development momentum, and the demand for infrastructure and high-tech industries has increased sharply.
In recent months, there has been a wave of reconciliation in the Middle East, and the Middle East pattern has undergone profound adjustments: Saudi Arabia and Iran have restored diplomatic relations, the peace process in Yemen has made positive progress, Qatar and Bahrain have decided to restore diplomatic relations, Turkey and Egypt have improved bilateral relations, and Syria has returned to the Arab League summit.
"Traditionally, the attention of the international community to the Arab countries has been focused on the political and security fields, and the attention of the local economy has been focused on the energy industry.
Zhang said that with the steady progress of the Middle East reconciliation trend, some Arab countries have made the improvement of people's livelihood a priority agenda, which not only promotes pragmatic cooperation among countries, but also provides a stable environment for regional economic cooperation and development.
"The trend of reconciliation in the Middle East is not sudden, but is based on the strategic needs and geopolitical changes of the Middle East countries. It is not a temporary phenomenon, but a long-term trend." Li Weijian said that the impact of the Middle East "reconciliation tide" on the economic development of Arab countries should not be underestimated. Geopolitically nervous and deterred investors want to seize the opportunity and increase their willingness to invest in Arab countries.
"Arab countries' economic development is on the right track, economic cooperation is constantly close, and geopolitical relations in the Middle East will further ease," Li said.
The economic outlook is positive.
According to the Global Data Regional and Global Risk Index (GCRI), the UAE maintained its position as the lowest risk country in the Middle East and Africa (MEA) region in the first quarter of 2023 compared to the previous quarter.
Saudi Arabia ranked third, followed by Qatar and Kuwait, which ranked fourth and fifth respectively.
According to the Global Economic Outlook released by the World Bank, the economic prospects of the Arab countries in 2023 and 2024 are generally optimistic.
The World Bank report forecasts economic growth of 3.5 per cent and 2.7 per cent in the Middle East and North Africa region; the report of the United Nations Economic and Social Commission for Western Asia forecasts GDP growth of 4.5 per cent and 3.4 per cent in the Arab countries.
According to the Economic and Social Development Survey of the Arab Region released by the United Nations Economic and Social Commission for Western Asia, unemployment in the Arab region will decline slightly in 2023; inflation is likely to fall to 8% and 4.5% in the next two years.
Zhang said that the increase in direct foreign investment will help promote the economic growth of Arab countries, alleviate the long-term problems of infrastructure and science and technology deficits faced by many countries in the region, and also provide support for the diversification and modernization of the regional economy.
The political stability of the Arab countries has been increasing, and the enthusiasm of all countries to seek new impetus for economic growth has been increasing.
In this context, the confidence of the international community in the economic prospects of the Arab countries has increased significantly.
However, the problem of uneven development within the Arab countries cannot be ignored.
According to a report released by the United Nations Economic and Social Commission for Western Asia (ESCWA), the economic growth of Arab countries is quite different, with some countries benefiting from soaring energy prices and some countries suffering from rising energy costs, food shortages and declining international aid inflows.
"Arab countries have not only an imbalance in industrial structure, but also an imbalance in regional development, which stems from internal factors such as national development plans, as well as external factors such as continuous external intervention, regional conflicts, and poor economic environment," Zhang said.
Sabih stressed the need for Arab countries to implement comprehensive plans to improve the political, economic and institutional investment climate as soon as possible.
"At present, the Arab countries are aware of the deep challenges of their own development and are trying to carry out regional reconciliation and strengthen strategic autonomy on the one hand, so as to provide favorable conditions for their economic transformation and industrial upgrading," Zhang said.
In addition, the region needs to improve the regional economic cooperation mechanism, and increase efforts to introduce diversified elements of economic development, including foreign capital, technology and manpower, to enrich its own industrial chain, so as to promote the economic and social modernization of the region.
Li Weijian said that in the future, to continue to enhance the attractiveness of investment and economic development, Arab countries need to do a good job in the following aspects: First, to ensure the stability and security of the economic development environment; second, to emancipate the mind, adjust the economic development structure, and promote diversified economic development; third, explore the establishment of contradictions and coordination mechanisms to create good conditions for cooperation among regional countries.
(Edited by: Wang Yuheng, Cui Yue)
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The value of new projects announced in Egypt in 2021 was $5.6 billion.

Title:

Content: « Money » monitors the forecasts of economic analysts for foreign investment flows in the current year
A number of them predicted it would reach $10 billion.
Samar Al-Sayed
Praying for Mahmood
6: 59 AM, Wednesday, 27 Jul 22
Wael Ziadeh: The Russian-Ukrainian war is an opportunity for the Egyptian stock exchange to attract more capital
Esraa Ahmed: Clean energy, infrastructure and digital financial services are the most attractive sectors
Hani Geneina: Companies should be encouraged to reinvest their profits instead of transferring them to parent entities abroad
Naaman Khaled: Most of the money will come from Gulf markets
The Egyptian government aims to increase foreign direct investment flows, especially the Gulf, in the local market in the coming period, in light of the repercussions of the Russian-Ukrainian war on the global and local economies, and a number of analysts and macroeconomic experts estimated the value of these investments to reach $10 billion, driven by various factors, including the decline in the stock prices of companies on the stock exchange, and the exchange rate of the pound against the dollar.
The latest report issued by UNCTAD in June on the volume of foreign investment flows in 15 African countries last year showed that Egypt ranked second in the list, recording the volume of flows about 5.122 billion dollars compared to 5.852 billion in 2020 compared to 9.010 billion in 2019.
South Africa came first last year with a 1,235% jump in investment inflows of $40.889 billion compared to $3.062 billion in 2020 and $5.125 billion in 2019.
Wael Ziadeh, founder and CEO of Zela Capital, said that the Russian-Ukrainian war had negatively affected foreign direct investment flows in the world, while inter-state assistance had increased to counter the negative consequences of the war.
He explained to Al-Mal that these negative effects included the exit of investment flows from some emerging countries, which led to the impact of their trade balance, especially as their imports of food and oil more than their exports, for example Turkey and many European countries, as well as Sri Lanka.
On the other hand, the war represents a positive area for these countries, especially in activating the stock market sector, he said, adding that in this context, the Egyptian Exchange has opportunities to attract more foreign investments in the coming period.
He predicted that Egypt will take no more than six months to recover its trade balance once the war is over, as the prices of petroleum products and food will fall rapidly, as they rose rapidly after the outbreak of the war.
The objectives of the Egyptian government published in July 2021 in the second and final review report of the Credit Standby Arrangement Program signed with the International Monetary Fund, amounting to about $5.4 billion, indicated that the percentage of net foreign direct investments of GDP will rise to 2.5% in the current fiscal year compared to 2% in the last fiscal year, adding that it recorded 1.4% in the fiscal year 2021 / 2020, 2% in 2019 and 2.6% in 2019. / 2018.
These targets pointed out that the proportion of net foreign direct investment will jump to 3% of GDP in the fiscal year 2025 / 2024 compared to 2.9% in 2023 / 2024.
The government also expected in the report to increase the volume of foreign direct investment flows in the local market to about 11.7 billion in the current fiscal year against 8.6 billion dollars in the last fiscal year 2022 / 2021 to rise to 14.9 billion in the next fiscal year (2023 / 2024) and 16.5 billion in 2025 / 2024.
According to the Central Bank of Egypt ’ s forecasts issued in its statistical bulletin for May, the proportion of net foreign direct investment in GDP declined to about 1.3% in the fiscal year 2020 / 2021 compared to 2% in the fiscal year 2019 / 2020, adding that it was 2.7% in the fiscal year 2018 / 2019 and 3.1% in the year 2017 / 2018.
Economist Hani Geneina predicted that the value of net foreign direct investments in the local market will exceed 10 billion dollars in the coming period, due to several different factors, including the decline in the prices of shares of companies in the stock exchange and the exchange rate of the pound against the dollar.
However, Egypt was the second largest recipient of foreign direct investment in the African continent, he said, adding that recent pledges from Gulf countries to invest about $22 billion in various sectors will boost foreign direct investment in the future.
The number of new green projects in Egypt has more than tripled to $5.6 billion, according to the UNCTAD report, pointing out that for example, the UAE real estate company Reportage announced a real estate project worth $1.5 billion.
According to the report, the volume of foreign direct investment flows to North Africa declined by 5% to $9.3 billion last year.
Geneina told Al-Mal that the flows of foreign direct investments to the markets are divided into three types, the first is the acquisition of one company on another by more than 10%, pointing out that this investment happened last fiscal year, such as the acquisition of the UAE Holding “ADQ ” on several Egyptian companies, pointing out the importance of this type of investment, but it is not very useful in the list of foreign investments.
This type of rapid investment is encouraged by the decline in both stock prices on the stock exchange and the exchange rate of the pound against the dollar, as well as the recent government stimulus measures that included the implementation of the state ownership document.
The document of state ownership announced by the government in mid-June revealed the most prominent sectors that will witness the stabilization or reduction of government investments (while allowing the participation of the private sector), a number of activities in the transport, education, mining, real estate, electricity, telecommunications and sports sectors.
Geneina said that the second type of flows is the reinvestment of a foreign company present in the market for its profits again, pointing out that this type is classified in the balance of payments as foreign direct investments.
He added that the most prominent local sectors that will go to this type of investment is oil and gas, due to the high value of its profits achieved last fiscal year, and will therefore reinvest its large financial surpluses during the current fiscal year.
He pointed out that the third type of investment is the most difficult, which is the establishment of a new company or project from the beginning, and the employment of new workers, pointing out that for example, Dana Gas announced that it will expand its operations implemented in the local market.
This area is likely to witness an increase during the current fiscal year, especially in the oil and gas sectors and related sectors, namely petrochemicals and fertilizers, especially by Gulf investments in light of the features announced recently by the government, namely the state ownership document, the gold license, as well as the large financial surpluses they have, which motivates them to invest in the local market.
In mid-May, Prime Minister Mostafa Madbouly announced a number of concessions on the industrial sector, most notably the issuance of the golden license for some projects, pointing out that it will be granted once and include three areas as a start, namely green hydrogen, electric car manufacturing and infrastructure, seawater desalination projects and renewable energy.
Geneina stressed the importance of the government encouraging foreign companies to reinvest their profits in the local market instead of transferring them to parent companies abroad by providing incentives to urge them to take this step.
According to the latest UNCTAD report, Mozambique ranked third in the list of foreign investment flows to 15 African countries last year, and its inflows rose by 68% to $5.102 billion compared to $3.035 billion in 2020, while it recorded 2.212 billion in 2019.
Nigeria ranked fourth on the list, attracting inflows of 4.844 billion over the past year, an increase of 103 percent from the previous year, the data added, adding that it recorded 2.385 billion in 2020 and 2.305 billion in 2019.
Ethiopia followed in fifth place, and foreign direct investment inflows increased last year by 79% to $4.259 billion compared to $2.381 billion in 2020.
In the sixth place came « Congo » with the volume of flows of $3.691 billion, a decline of 8% from its value in 2020, and recorded 4.016 billion dollars, followed by Ghana in the seventh place in the list and increased flows by 39% to reach 2.614 billion dollars during 2021 compared to 1.876 billion in 2020.
According to data from the UNCTAD list, foreign direct investment flows in Senegal jumped by 21% to 2.232 billion against 1.846 billion dollars in the previous comparison period.
According to the report, the value of flows to Morocco increased by 52% last year to $2.153 billion, and a major international financing deal was announced there, a $20 billion construction project for a 3,800km transmission line to the UK with a capacity of 3.6 gigawatts, sponsored by English company Xlinks.
The Democratic Republic of the Congo ranked 10th on the list, with investments up 14% to $1.870 billion compared to $1.647 billion in 2020.
Gabon came in eleventh place, with direct investment flows falling by 5% last year to record 1.635 billion dollars compared to 1.717 billion in 2020, followed by Uganda, with flows rising by 31% to 1.142 billion dollars compared to 874 million in 2020.
Tanzania ranked 13th, with foreign investment up 35 percent in 2021 to $922 million compared to $685 million in 2020.
According to the bulletin, investment flows in Algeria decreased by 24% last year to $870 million compared to $1.143 million in 2020, pointing to the decline of investments in Tunisia to $660 million compared to $652 million in 2020 to be ranked 15th.
Esraa Ahmed, a macro-economic analyst at the investment bank “Ahly Pharos ”, agrees with Geneina ’ s opinion as she expects the volume of net foreign direct investment in Egypt to rise to about $10 billion during the current fiscal year (2022 / 2023), up from levels that will not exceed $7 billion in the fiscal year ending 2021 / 2022.
She added that this rise is driven by the Gulf investment flows that have been announced recently, and the acquisition deals that we see are witnessing activity during the current period.
There are other factors that may prevent net foreign direct investment from rising to larger numbers in the near future due to the continuation of the war in Ukraine and its repercussions on the global economy.
According to Ahmed, these factors are the economic situation of the European Union, which is an important partner for Egypt in terms of trade and investment, in addition to the general reluctance globally to risk starting new projects, and the prevailing outlook for emerging markets and the risks of their currencies.
On the sectors that may witness foreign inflows during the coming period, she said that the most prominent of them are clean energy, new infrastructure driven by the expansion of the state in this field, in addition to digital financial services, and some branches of manufacturing industries.
For his part, Numan Khalid, a macro-economic analyst at Arqaam Capital, said that the current circumstances in the world prevent the possibility of predicting the volume of foreign direct investment flows in the local market during the coming period.
He added that most of the investments come from the Gulf market, especially from Saudi Arabia and the UAE, pointing out that these two countries have benefited greatly from the recent increases in oil prices, and thus have a great financial solvency through which to invest in surrounding countries, especially in Egypt, which is one of their target markets.
He pointed out that health, hotels, real estate and the financial sector will witness an increase in the volume of investment flows to them during the coming period.
During his participation in the Qatar Economic Forum last June, the Minister of Finance, Mohamed Maait, looked forward to increasing the volume of Gulf investments with the transformation of their deposits in Egypt into real investments that benefit from the promising development opportunities available in various fields.

India has invested heavily in infrastructure development in Africa, with a focus on reviving the Asia Africa Growth Corridor project.

Title:

Content: Global investors waiting to pour in money in Africa to firewall China

By IANS | Published: August 2, 2021 02:09 PM2021-08-02T14:09:05+5:302021-08-02T14:25:34+5:30

New Delhi, Aug 2: After a tepid inflow of foreign direct investments (FDI) into Africa in 2020 amid the ...

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New Delhi, Aug 2: After a tepid inflow of foreign direct investments (FDI) into Africa in 2020 amid the Covid-19, investors are once again warming up to the continent. According to the United Nations Conference on Trade and Development (UNCTAD), FDI flows into Africa declined by 16 per cent in 2020 to $40 billion, from $47 billion in 2019.

China, the primary investor in the continent, has also slowed down its investments into the continent leaving an opportunity for other investors.

While the UNCTAD projected FDI inflow into Africa to grow this year, it said that the slow vaccine roll-out programme is a cause for concern. According to UNCTAD, FDI to the continent is projected to grow by only 5 per cent in 2021. But analysts said Africa as an investment destination has led to "an unprecedented curiosity" among other countries, which are now aggressively looking to mute China's dominance in the continent.

"Africa is critical in the new geopolitical and geo-economic contours. The continent, with its vast natural resources, offers a ready growth platform," an analyst told India Narrative.

According to a study published by Brookings Institution last week, Africa is home to 17 per cent of the world population. However, by 2050, it will have 26 per cent of the global population 2.53 billion people. "If Africa is not successfully integrated into the global economy, there could be a major threat to global prosperity and stability," the study said, adding that by 2050, the continent will be home to an estimated $16.12 trillion of combined consumer and business spending.

The African Continental Free Trade Area (AfCFTA) – the mega trade could give a push to intra-continental investment.

Touted as one of the biggest trade deals in the world, the AfCTA aims to create a single market comprising 1.3 billion people with a combined GDP of about $3.4 trillion.

Meanwhile, the US may have woken up late in recognising the potential of Africa but is making all attempts to make up for the lost time.

The Group of Seven or G7 has already decided to support US President Joe Biden's proposal of carving out a mega infrastructure plan under the "Build Back Better World" (B3W) initiative, expected to bring in transparency and sustainability. Besides, the initiative will be carried out only in consultation with local communities.

The G7 in its meeting in June also announced that it will increase its support to the Indo Pacific and Africa. "We resolve to collaborate with partners around the world, including in the Indo-Pacific and Africa, to actively promote these shared values for the good of all," said the statement.

India too has pressed the pedal on investments in the region. Sources said that the still-born Asia Africa Growth Corridor—the mega infrastructure project that was launched in 2017 to connect Asia and Africa must be revived.

Carnegie Endowment for International Peace noted that Chinese financiers committed $153 billion to African public sector borrowers between 2000 and 2019. "After rapid growth in the 2000s, annual lending commitments to Africa peaked in 2013, the year the BRI was launched. By 2019, though, new Chinese loan commitments amounted to only $7 billion to the continent, down 30 percent from $9.9 billion in 2018," it said.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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