Foreign direct investment in Africa reached $45 billion in 2022 and is expected to continue growing due to the continent's large consumer market and untapped export potential.

The African Continental Free Trade Area has created a $3.4 trillion market, with a population projected to reach 1.7 billion by 2030.

Major foreign companies and the International Finance Corporation are investing in Africa, with the latter planning to mobilize $10 billion by 2030.

The UK, France, and Netherlands are top investors in Africa, with the UK holding $65bn, while India, Japan, and South Korea also make significant investments.

African entities are forming partnerships with foreign companies to promote economic growth and development in the continent.

Africa's energy sector attracts significant foreign investment, particularly in countries like Egypt, Nigeria, and South Africa.

The US, China, and other countries plan to increase investments in Africa, focusing on infrastructure, energy, and other sectors.

Africa's fintech sector is projected to reach $30bn and the Internet economy is expected to be 5.1% of GDP by 2025.

The International Finance Corporation aims to invest $10bn annually in Africa by 2030.

African business administration students should develop skills in sustainability, entrepreneurship, and technology to pursue careers in international business, management consulting, and corporate finance.

African partnerships with foreign companies can offer opportunities for business administration graduates who prioritize sustainability and shared prosperity.

The outlook for foreign investment in Africa is positive, offering opportunities for students to prepare for careers in international business by developing necessary skills.

Africa's private wealth is expected to reach $3 trillion by 2031, with Mauritius and Rwanda driving strong growth.

Foreign direct investment in Africa reached $45 billion in 2022 and is expected to continue growing due to the continent's large consumer market and untapped export potential.

Title:

Content: Japan, Korea and India experience to expand Africa, Taiwan and Africa entrepreneurs association
The “Taiwan-Africa Entrepreneurs Association ”, commissioned by the International Trade Bureau of the Ministry of Economic Affairs, attracted more than 130 enterprises interested in exploring the African market. The exhibition and consultation desk at the representative office showed that our company's desire to expand the African market is very hot.
The theme of the event was “The Key to Success for Foreign Investors (Japan, Korea and India) in Expanding Africa ”. The event was addressed by Wang Ximeng, Secretary General of the Foreign Trade Association, Liu William, Deputy Director of the Bureau of International Trade of the Ministry of Economic Affairs, Msibi, Ambassador of the Kingdom of Swaziland, and Chen Shu-fang, President of the Association of Taiwan Commerce. In addition, Hung Sheng Packaging General Manager Tang Jung-hung, Yi Ho Industrial General Manager Fu Yang-li, and Nam Wei Industrial Strategy Director Yang Wei-han analyze the development opportunities in Africa from their practical experience in the packaging, building materials, and textile industries.
Wang Ximeng, secretary general of the Foreign Trade Association, pointed out that in addition to the competition between Europe, America and China over the layout of the African continent, Japan, South Korea, India and other countries in Asia are committed to increasing investment and economic cooperation in Africa.
There are more than 1.3 million people of Indian descent in Africa, such as in East Africa, where more than 60% of the economic lifeline is controlled by Indians.
In addition, 18 of India's 25 newly established embassies and consulates are located in Africa, and India has become the fifth largest investor in Africa, while Japanese automobile manufacturers Toyota, Nissan, and electrical appliance giant Toshiba have already planted flags in Africa; South Korea's Hyundai, Samsung, LG and other large enterprises have also been stationed in Africa.
Through this event, we hope to help our business people to learn from foreign companies such as Japan, Korea and India, as well as African market leaders, and shorten the path to enter the African market.
Liu, deputy director of the International Trade Bureau, said that in recent years, the global economy has continued to be volatile due to changes in the international situation such as Sino-US trade frictions, global inflation, and the Russian-Ukrainian war, but Africa has shown great resilience during this period.
In addition, foreign direct investment in Africa reached US $45 billion in 2022, which has returned to the pre-epidemic level, indicating that confidence in investment in Africa has gradually recovered. In 2022, the total import and export value of Africa reached a new high in recent years, with imports reaching US $694.5 billion, up 14%, and exports reaching US $661.4 billion, up 19%. It is hoped that through the activities of the association, upstream and downstream companies in various industries can learn from each other and share their experiences, and work together to promote Taiwan-Africa economic and trade relations.
The event will be held in conjunction with AGOA, a major textile manufacturer in South China, and the representative offices of African embassies in Taiwan, Africa-related associations, and import and export banks providing trade and financial services. For more information, please visit africa.taiwantrade.com for more information.

What trends are emerging for African startups in 2022?

The African Continental Free Trade Area has created a $3.4 trillion market, with a population projected to reach 1.7 billion by 2030.

Title:

Content:
BusinessDay

Opportunities in volatile trade environment, the AfCFTA perspective

Trade Finance is the fundamental driver of economies around the globe. Regardless of economic cycles and the implications of macro events such as the financial crises in 2007 and 2008, Brexit, the economies of all countries around the world continue to be driven by parties trading commercially in exchange of goods.

Therefore, smooth settlement of commercial contracts and a smooth exchange of goods to satisfy the demands of the end consumers is paramount.

The outbreak of the COVID-19 pandemic caused a huge disruption to all sectors of global economy most especially international trade in goods and services, which dipped by about 10 percent in 2020 because of the lockdown in many parts of the world and the disruption in production, supply chain and consumption.

Further effects of the COVID-19 were the limitations in the movement of goods and services as well as people, huge demurrage payments due to delays in receipt of negotiated sets of documents for clearing at the ports.

According to the United Nations Conference on Trade and Development (UNCTAD) Secretariat calculations on national statistics, it was noted that international trade began to recover slowly for a lot of the major economies during Q3’ 2020, while a noticeable general recovery happened in Q4’ 2020.

In Nigeria, a significant 57.60 percent increase was noted in foreign trade goods when comparing 2021 with 2020. This was according to the National Bureau of Statistics (NBS).

Africa’s growth in trade

The fast growth of population and markets in Africa offers businesses several opportunities despite the slow growth globally.

Investments and innovations from businesses within Africa are necessary to meet the ever-growing demand for goods and services, infrastructure gap closure, job creation and poverty alleviation.

African Continental Free Trade Area (AfCFTA) has created a borderless market worth $3.4 trillion. This would reduce contraction in growth caused by COVID-19, reduce inequality and poverty trends, and encourage an inclusive continental growth.

Africa’s current population of around 1.2 billion people is projected to reach 1.7 billion by 2030. It has been noted that 34 percent of households in Africa live below the international poverty line of $1.9 per day.

Also, approximately 40 percent of the total wealth belongs to 0.0001 percent of Africa’s population, according to a report issued by the UNCTAD. The pandemic has worsened the case of vulnerabilities and inequalities of marginalised people, leading to an additional 37 million people in sub-Saharan Africa (SSA) living in extreme poverty.

Data from the African Development Bank (AfDB) show that the continent’s current untapped export potential amounts to $21.9 billion. It is expected that an export potential of $9.2 billion would be realised through a partial tariff liberalisation plan of AfCFTA over the next five years.

Also critical is enhanced pan-African collaboration in service export, which will play a key role to deliver on the 2030 Agenda for Sustainable Development.

According to the World Bank, by 2030, the largest consumer markets will include Nigeria, Egypt, and South Africa.

Lucrative opportunities in countries like Algeria, Angola, Ghana, Kenya, Morocco, Sudan, Ethiopia, Tunisia, and Tanzania, among others in Africa. Ethiopia, as an example, is reportedly one of the fastest-growing economies in the world over the past decade, with an average annual growth of 10.5 percent GDP from 2005-06 to 2015-16

Opportunities in ICT and mobile access

The rapid diffusion of ICTs in Africa over the past decade has facilitated access to consumers in new and varied ways.

Africa is currently the fastest-growing mobile telecom market in the world, averaging roughly 30 percent increase in mobile phone connections per year since 2000, and recently overtaking Latin America to become the world’s second-largest mobile market behind Asia

SSA experienced the world’s fastest rate of new broadband connections between the years 2008 and 2015.

Also, with the introduction of many players in the telecom space, mobile data traffic is expected to increase in multiple folds between 2017 and 2022. Mobile money accounts that are active are close to 120 million users, which is over 50 percent of the global total.

This has reduced usage of traditional banking products. It is expected that this would allow companies to improve their productivity, increase transaction speed, and access other markets. It could additionally increase the continent’s GDP by 2025 by over $300bn.

Agricultural resource growth

Africa has always been known for her riches in agriculture and mineral resources. Though this has not been translated into economic growth, shared wealth, innovations and further investments can change the picture.

The sector can create exciting growth opportunities for businesses. Africa can produce what it eats and move to the top of the food value chain globally. Agro-industrialisation would add value to what is being produced.

Industrialisation in Africa

The timely intervention on the industrial development of Africa is a welcome development. Africa is probably the least diversified in the world, with minimal progress recorded over the last two decades on industrialisation.

It is suggested that African industries have the opportunity to double production to nearly $1 trillion within a decade. Three-quarters of that growth is likely to come from manufacturing to substitute imports and meet rapidly growing local demand.

Urbanisation

Africa’s urban growth is the fastest in the world. The continent’s population is projected to double between now and 2050.

It is expected that Two-thirds of this growth will happen in the urban areas. 30 years from now, the cities will house an additional 950 million people globally.

There are lots of opportunities that come with this, as well as challenges for businesses, citizens and the government of Africa.

Read also: Beyond ECOWAS, 18 months of AfCFTA yet to show in Nigeria’s exports

There is a need to revamp political development agendas and improve policy decision-making. The implications of this have lasting consequences over generations.

These trends are promoting a spike in sector developments such as in pharmaceuticals, financial services, education, healthcare and so on.

Payment solution – PAPSS

By simplifying cross-border transactions and reducing the dependency on hard currencies, intra-African trade is boosted significantly and promotes the implementation of the AfCFTA, which is a force for African governments to address their infrastructure needs as well as to overhaul regulation relating to tariffs, bilateral trade, cross-border initiatives and capital flows.

The Pan African Payment and Settlement Systems (PAPSS) is a central Financial Market Infrastructure (FMI) that supports payment arrangements for the purpose of expanding the international trade of African States, and to facilitate central bank’s economic and financial integration.

PAPSS is currently live in the West African states Monetary Zone (WAMZ) in the following countries: Nigeria, the Gambia, Sierra Leone, Liberia, Ghana, and Guinea. Engagements are ongoing with all African Central Banks and all regional payment institutions.

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Major foreign companies and the International Finance Corporation are investing in Africa, with the latter planning to mobilize $10 billion by 2030.

Title:

Content: (Bloomberg) -- Analysts have raised the earnings outlook for South Africa’s main equity index to an almost 11-year high. Money managers say that’s a red herring.

The average forecast for 12-month profits in the FTSE JSE Africa All Share Index rose as much as 4% in dollar terms this year through May 31 to the highest level since 2012. It also hit a record high in local-currency terms. The upgrades came even as the estimate for emerging-market stocks as a whole fell 1.4%.

But due to a quirk in the South African benchmark, which includes many foreign companies, the profit projections lean heavily on growth prospects outside the country — ranging from luxury goods sales in Asia to digital commerce in Europe. Some smaller earnings upgrades reflect a rally in gold. Beyond this positive facade, South Africa’s economy remains crippled by energy shortages and elevated inflation, said Ashish Chugh, a money manager at Loomis Sayles & Co. in Boston.

“This analyst optimism is misplaced and embeds higher-than-reasonable expectations for recovery from the severe electricity rationing that’s been hitting the economy for the past two years,” Chugh said in emailed comments. “We are less sanguine on the outlook for domestic earnings recovery in South Africa and expect incremental downgrades from here.”

South Africa has faced rolling blackouts as the heavily indebted state-run energy utility struggles to keep its aging fleet of power stations operating. Meanwhile, inflation is running well above the central bank’s target range, prompting it to more than double its benchmark rate to 8.25% in two years in a further constraint on the economy. The South African Reserve Bank cut its economic growth outlook for 2023 to 0.3%, while the International Monetary Fund projected a 0.1% expansion.

Chugh said companies with businesses abroad and that don’t depend on the domestic economy account for almost half of the main Johannesburg equity index by weight. Much of the market’s limited investment appeal comes down to these stocks, but they are a bet on select corners of the global economy, rather than on South Africa.

Richemont, the Swiss luxury conglomerate, is the single-biggest stock in the South African index, with a weighting of about 19%. Earnings projections for the Cartier owner have climbed 16% this year, pushing them to a record high in data going back to 2005.

Other foreign companies such as Amsterdam-based tech investor Prosus NV and British American Tobacco Plc have also had their earnings outlook upgraded. And estimates have been raised for Gold Fields Ltd., Harmony Gold Mining Co. and DRDGold Ltd., helped by bullion’s 7.7% advance in 2023.

Meanwhile, earnings expectations for most locally focused companies have been heading lower.

“Over the last few months, a divergence in earnings expectations has been developing,” said money managers Hannes van den Berg and Rehana Khan at the Ninety One Equity Fund. “Concerns around disruptive electricity supply as well as tighter monetary conditions have seen expectations for SA Inc. companies moderating.”

READ MORE: How South Africa’s Blackouts Went From Bad to Worse: QuickTake

This year’s 5.3% gain in the Johannesburg benchmark index has been almost entirely driven by companies with their primary listings abroad, leaving locally focused firms lagging behind. Zurich-traded Richemont’s more than 30% surge accounts for 90% of the gauge’s performance, followed by the gold companies with smaller contributions.

Money managers predict index-level gains to wind down this year.

“Sustaining the recovery is likely to be challenging until the South African Reserve Bank starts to cut interest rates, loadshedding is significantly reduced, the economy returns to real growth and the global macro environment becomes more supportive,” said Peter Takaendesa, the head of equities at Mergence Investment Managers in Cape Town. “We do not forecast short-term returns for the equity market, but focus on finding quality business that trade at cheaper valuations compared to our assessment of their long term intrinsic values.”

©2023 Bloomberg L.P.

What trends are emerging for African startups in 2022?

The UK, France, and Netherlands are top investors in Africa, with the UK holding $65bn, while India, Japan, and South Korea also make significant investments.

What trends are emerging for African startups in 2022?

Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

African entities are forming partnerships with foreign companies to promote economic growth and development in the continent.

Title:

Content: Africa Investment Forum announces coordination of investments worth $32.8 billion - Sunrise Portal
Friday 18 March 2022 7: 02 AM Cairo Cairo 24 °
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Africa Investment Forum Announces $32.8 Billion Investment Coordination
African Development Bank
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Published on: Friday 18 March 2022 - 6: 02 AM | Last updated on Friday 18 March 2022 - 6: 02 AM
African Development Bank (AfDB) President Akinwumi Adesina announced that the forum was successful in coordinating investment deals for projects in Africa worth $32.8 billion.
At the end of the Africa Investment Forum, Adesina said that the largest deal reached at the African Investment Forum, which was held by default, during the period from 15 to 17 March, amounted to $15.6 billion for the Lagos-Abidjan highway, which connects two major cities in West Africa, Nigeria and Ivory Coast.
The 1,200-kilometer highway will consist of four to six lanes and will take about six years to complete, he said.
The projects addressed by the forum touched on the sectors of agriculture, education, energy, climate, health care, minerals, mining and information and communication technology.
Adesina noted that other projects will include the creation of a new medical city in the Senegalese capital of Accra, a fund for health services for low-income populations in South Africa, and two platforms for the manufacture of pharmaceutical products: one in West Africa and the other in Kenya.
These projects are part of the bank ’ s response to COVID-19.
The forum was originally scheduled for late last year in the Ivorian capital Abidjan, but was postponed due to an increase in the number of Omicron cases.
Adesina said: “Through the African Investment Forum, we aim to offset some of the decline in investments that occurred as a result of the COVID-19 pandemic, where“ project funding decreased by about 49%, affecting infrastructure. ”
The AfDB sees its focus on infrastructure as boosting intra-African trade, which today accounts for only about 15% of the continent ’ s total trade, as investment flows are set to help accelerate the implementation of the African Continental Free Trade Area (AfCFTA), which is expected to be fully operational in 2030, to include a market of 1.2 billion people with a GDP of $2.5 trillion.
The African Export-Import Bank is also developing a system that will enable the transfer of funds between African countries instead of settling payments through US and European banks, an initiative that is expected to save the continent $5 billion in annual transaction costs.
“We have no choice but to make the African Continental Free Trade Area (AfCFTA) operational as soon as possible. ”
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Which countries are actively investing in Africa besides China?

Africa's energy sector attracts significant foreign investment, particularly in countries like Egypt, Nigeria, and South Africa.

Title:

Content: ECONOMY
Mulla: International partnerships in Africa will enable technology transfer and connect local partners
Thank you for reading the news about Al Mulla: International partnerships in Africa will enable technology transfer and connect local partners.
Minister of Petroleum and Mineral Resources Tarek El-Molla said that talking about the exploitation of energy in the African continent should include energy of all kinds and integration, especially as the African continent has various natural resources that can be exploited to diversify the appropriate energy mix that meets the needs of the continent's peoples while reducing emissions.
This came during the session “Moving Forward in Support of Low-Carbon Development Pathways in Africa and Developing Countries ” during the Day of Decarbonization at the Cop27 Climate Summit.
With regard to the development of the energy sector in African countries, the minister pointed to the Egyptian experience in transforming the challenges of the energy sector over 7 years into success stories based on the state ’ s provision of the appropriate investment climate to attract new investments and build confidence in investment in Egypt with international partners, which led to balanced partnerships with international energy partners.
He added that international partnerships in Africa will allow the transfer of technology and link local partners to it, stressing the importance of building a good work system in all fields such as oil, gas, electricity and renewable energy.
He pointed to the importance of African countries providing incentives to partners because some policies do not include the necessary incentives to attract investments and we must attract them to our countries and allow the participation of the private sector, Al-Mulla concluded that there are great challenges but we have the advantages in Africa to build our future through cooperation and partnership to prosper the continent.
African Development Bank President Akinwumi Adesina praised the Egyptian effort in organizing the conference, pointing out that the African Bank is committed to providing $5 million in new and renewable energy projects where Africa owns 45% of the renewable energy in the world, which makes it eligible to establish giant solar energy projects. He cited the experience of Kenya, where we managed to attract large investments of up to 21 billion dollars in the field of energy, whether oil, gas or new and renewable energy in a short time because we paved the way and worked to change policies and renewable energy represents 85% of the investments in the field of energy and we also use natural gas.
Egyptian industries are promising industries that can catch up with China, but they need to increase funding and encourage investment, and we should focus on the African market in directing industrial activities to achieve the best use of natural resources, especially relying on clean energy.
Helmet von Stroff, CEO of Siemens Middle East, said that this year ’ s conference provided an opportunity to discuss challenges and opportunities towards decarbonization and finding sustainable solutions, stressing the importance of supporting African countries towards a low-carbon economy and providing the necessary technical support, especially for developing countries.
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The US, China, and other countries plan to increase investments in Africa, focusing on infrastructure, energy, and other sectors.

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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What trends are emerging for African startups in 2022?

Which countries are actively investing in Africa besides China?

Africa's fintech sector is projected to reach $30bn and the Internet economy is expected to be 5.1% of GDP by 2025.

Title:

Content: When asked for his views on diversification as a strategy for portfolio management, Warren Buffett responded, “diversification is protection against ignorance”. Instead of a diversified portfolio, the Oracle of Omaha famously prefers a concentrated one, composed of a few sectors he has rigorously studied.

The UK’s investment strategy for the African continent is seemingly straight out of the Buffett playbook. As of 2020, the UK holds $65bn in total foreign direct investment (FDI) stock in Africa, second only to China. The vast majority of the portfolio is in oil, gas, mining and financial services.

In 2022 five new oil and gas deals worth £2.1bn were struck at the UK-Africa summit. In stark contrast, just £161m (8% of the total summit commitments) were invested in clean energy. One may agree with the UK’s strategy, suggesting that there aren’t many other high-yield investments to be made other than in oil majors, legacy miners and grey-haired banks. And besides, who would disagree with Buffett’s dictum? He is the sixth-wealthiest person in the world after all.

The truth of the matter is that Buffett would not be as wealthy as he is without adapting to changes in market trends, technologies and geopolitics. In May he sold his remaining stake in chip manufacturer TSMC due to geopolitical considerations (TSMC is based in Taiwan). A concentrated portfolio does not mean a stagnant one. It is this insight that the UK is overlooking, setting itself up to miss opportunities in those new industries rapidly taking shape across the world’s youngest and most promising continent.

Two trends are shaping markets across the continent. One of these is the adoption of financial technologies and the other is increased demand for healthcare, a consequence of Africa’s population boom and rising standards of living.

Fintech sector

McKinsey, a consultancy, estimated that revenues in the African fintech sector could surge eight times their current value to $30bn by 2025. Between 2020 and 2021 alone, the number of tech start-ups tripled to 5,200 companies. In 2021, seven of the 10 newly minted African unicorns (private companies valued over $1bn) are fintechs. As more Africans get connected and as digital identification verification models mature, fintechs will scale and profits will follow.

The second sector is pharmaceuticals. As Africa’s population grows and incomes rise, more money will be spent on healthcare. Within this sector, the Covid-19 pandemic laid bare the worrisome state of Africa’s vaccine and therapeutic manufacturing capabilities. Estimates vary, but some assessments forecast vaccine demand to double in volume from about 1-billion doses now to more than 2.7-billion doses by 2040. Industries adjacent to pharmaceuticals such as logistics, packaging and protective equipment are likely to cash in on increased private and public healthcare expenditure.

There are some positive signs that the newly revamped British International Investment (BII), formally the Commonwealth Development Corporation, is adjusting its investments because of these market trends. In 2020, the BII made a $150m investment in Kelix bio, a pan-African pharmaceutical platform focusing on manufacturing and marketing. It also executed a $20m, four-year structured credit deal with Moove, a fintech company that provides customers with cheaper access to vehicles.

Risk premium

These steps are positive but they are small. Inward FDI for Africa remains pitiful. Last year set a record for the continent, bringing in $83bn. To put this in context, the City of London in 2020 hit $831bn in FDI (10 times that of a continent of 54 countries), according to the Office of National Statistics.

What to make of this all? At least two insights. First, the UK should look to new sectors, taking bold bets in companies leading the fintech and pharmaceutical sectors. The second insight is that Africa’s risk premium is overpriced. There is opportunity beyond the industries of the 20th century; one just needs to look for them.

• Nott works for a venture facility for public benefit and is based in London. He writes in his personal capacity. You can follow his writing on Twitter @TheAfricaBrief.

Picture: 123RF

The International Finance Corporation aims to invest $10bn annually in Africa by 2030.

Title:

Content: Creating the framework to attract private investment into Africa

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By Omar Ben Yedder. Published on November 3, 2022

The International Finance Corporation (IFC) is on course to mobilise $10bn of private sector investment annually into Africa by 2030 says its vice president for Africa.

African business administration students should develop skills in sustainability, entrepreneurship, and technology to pursue careers in international business, management consulting, and corporate finance.

Title:

Content: CIB - Egypt Announces at Climate Conference Ways to Launch ‘ Sustainable Finance Academy ’
To support international financial institutions
Iman Ashraf
6: 32 PM, Mon, 21 Nov 22
CIB aims to integrate the concepts of climate action and awareness with the education and training system of the banking sector, as well as bridging the awareness gap on the United Nations Sustainable Development Goals. The initiative was launched during a panel discussion entitled “Education for Sustainable Development ”, which was moderated by CIB on the sidelines of the COP27 Climate Conference on Civil Society Day. November 15 under the theme“ COP27 Sharm El Sheikh: From Africa to the World ”.
The seminar was moderated by dr.
Dalia Abdelkader, CIB ’ s Head of Sustainable Finance, was a keynote speaker.
David Orr is Professor of Environmental Studies at Paul Sears College of Oberlin College.
James Marsh, a professor at the University of Vermont, and Natalie Mangondo, a member of the United Nations High-Level Champions of Climate Change in Finance team.
Jonathan Bedley, Dean of Henley Business School, Africa
Dina Abdel Fattah, Assistant Professor and Head of the Department of Economics at the American University in Cairo.
Helmy Abouleish, President of Heliopolis University for Sustainable Development and CEO of SEKEM Group, and Mikhail, Head of Learning and Development at CIB
She explained dr.
Despite the establishment of the United Nations Sustainable Development Goals (SDGs) under the Paris Agreement, held during COP21 in 2015, which committed signatory countries to confront climate change, the world is still going through remarkable developments, and global temperatures have increased dramatically over the past five years. The educational system is still based on 20th century concepts that have fragmented knowledge into isolated islands of independent specialized curricula that lack the holistic perspective and “system thinking ” that is the basis of sustainability.
She added: “We will find that graduates with finance degrees do not necessarily have any scientific knowledge or knowledge of environmental standards and environmental protection laws, which in turn attracts financial institutions annually thousands of graduates who lack knowledge of the application of sustainable development standards and practices required by working in the banking sector in compliance with the guidelines and instructions of the Central Bank of Egypt for sustainable development. Its educational curricula provide scientific and practical knowledge of sustainable development standards and practices. ”
COP27 focuses on mobilizing financing for climate action and developing innovative solutions to address obstacles to sustainable development, and one of the main themes of the panel was “Are education systems in the 21st century meeting the requirements of the Sustainable Development Goals? ”
In this context, Fr.
David Orr said that changing ideas and concepts has a high priority over changing economic policies and technological systems in order to address the worsening climate change crisis, stressing that this change requires the development of education systems.
He pointed out dr.
He stressed that African companies, universities and business schools should focus on adopting the idea of   achieving African renaissance and shared prosperity, instead of focusing on profitability only, stressing that capital investments based on profit only incur very high costs, as the impact of pressing issues such as poverty, exclusion, climate change and others will certainly negatively affect everyone and lead to undesirable consequences in the future.
Bidley added that the phenomenon we are currently facing is the lack of an alternative plan or plan to address such issues, and efforts should be concerted among all business schools to embed the idea of   achieving renaissance and shared prosperity in the ideology and minds of senior management and teams of institutions and companies, instead of efforts limited to achieving profitability only.
The new role that African universities and business schools should play is to establish a new approach in which an economic system is established that meets the requirements of the times, instead of the old curricula that do not keep pace with the surrounding developments.
The panel also addressed ways to bridge the gap between education systems and the current needs of companies and organizations to integrate sustainability standards and practices into their activities and businesses, in compliance with national regulations and laws.
Marcos Mikhail, CIB ’ s Head of Learning and Development, said: “Raising knowledge and scientific awareness of sustainability standards and practices is no longer optional, but an urgent necessity for everyone.
CIB is investing heavily in educating and training new graduates on the science and fundamentals of sustainable finance, raising their awareness of regulatory frameworks and policies in this area in general, and the objectives of CIB ’ s Sustainable Development Strategy in particular. ”
She said dr.
Education systems based on raising awareness of sustainability have become an indispensable tool to enable future generations to adapt and deal with the escalating climate challenges and reduce them, stressing that climate change has become an undeniable reality, and sustainability has become a matter of urgency and rooted in the minds of business leaders.
Presented by dr.
Helmy Abouleish highlighted his experience at Heliopolis University and stressed that the only way to address climate change is to conduct a community dialogue in which every citizen participates in order to propose new ideas to improve the quality of sustainable development education, and to present and discuss all the challenges faced by citizens, while making fundamental changes to the educational system at all levels to include various sciences and practices of sustainable development.
The panel discussion was a platform to announce the Bank ’ s plan to develop the Sustainable Finance Academy, which is part of the Bank ’ s sustainable finance strategy. CIB is keen to spread the science and knowledge of sustainable finance and the tools to enhance it, in order to enhance the capabilities of its team, all banking teams and all stakeholders.
Through these efforts, the Bank aims to integrate financial institutions operating in the Middle East and North Africa markets to adhere to sustainability standards and practices, as well as to enable future generations to continue on this path.

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Africa's private wealth is expected to reach $3 trillion by 2031, with Mauritius and Rwanda driving strong growth.

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Content: Archive / Global News
World Today – Two small countries driving strong growth in Africa ’ s private wealth
You are now following the news of two small countries driving strong growth in Africa's private wealth from the World News section and now we leave you with the full details
MOHAMMED, Abu Dhabi, March 4, 2023 09: 22 PM – Rwanda and Mauritius combined account for less than 5 percent of Nigeria ’ s GDP, but the two small countries are driving strong growth in private wealth in Africa which is expected to rise to $3 trillion by 2031 from the current 2.1 trillion.
According to Henley Global Consulting ’ s Africa Private Wealth Report, Africa ’ s smaller and better-regulated economies are fast becoming centres of wealth and home to more millionaires on the continent.
Private wealth in Mauritius is expected to grow by 80 percent over the next 10 years, compared with 60 percent for Rwanda.
Great for Mauritius.
The number of high net worth individuals in Mauritius will reach more than 8,000 by 2031, making it one of the fastest attracting markets for high net worth individuals in the world, along with Australia, New Zealand, Switzerland and Malta.
In 2022, Mauritius became the first African country in terms of per capita wealth, due to the significant growth in the number of wealthy people who have flocked to it in recent years, taking advantage of the easy environment to do business, with Mauritius ranked 13th globally in the latest World Bank report on the indicators of the business environment; and ranked by the New World Index as the safest country in Africa.
Adult Retreat
As small countries attract more wealth, countries that have historically been the epicenter of private wealth in Africa are experiencing a steady exodus of millionaires.
Over the past 10 years, about 4,500 people with more than $1 million have left South Africa.
Although South Africa remains a major bastion of wealth in Africa, with a strong market for luxury real estate and wealth management services, it has faced significant economic and security challenges in recent years.
Of the 2,668 billionaires in the world, 15 are born in South Africa, but only 5 still live there.
Nigeria, Africa ’ s largest economy, has seen a sharp decline in total wealth, having suffered in recent years from high unemployment, corruption and over-reliance on oil exports.
Positive outlook
The outlook for private wealth on the continent is largely positive, as African countries have become less reliant on extractive industries, and business conditions continue to improve in many countries.
On the other hand, rapid population growth is a magnet for financiers looking for larger consumer markets.
Khaya Munzima, editor-in-chief specializing in economic affairs at the South African Broadcasting Corporation, believes that the continent has a lot of potential that helps to grow private wealth, especially in the central sectors that include agriculture, mining, information and communications technology, real estate and others.
“Africa is the second largest continent in the world with a population of 1.2 billion people, which is important for consumer activities that attract private wealth. ”
“The global economy is so interconnected that it is undeniable that the impact of the Russian conflict in Ukraine has been enormous on Africa, and there is an urgent need to pay more attention to the development of the financial sector, which is a key pillar of private capital. ”
Challenging the business environment
For experts, the African countries best able to improve the business environment will be the most profitable for the most part.
The World Bank estimates that of the 35 least business-friendly countries in the world, 27 are in Africa.
In this context, experts point to several challenges that hinder financial flows to many African countries, including corruption, bribery and extortion, as well as security and political instability.
Investment consultant Khea Sithol says some African countries are treating foreign firms as tools to absorb the crises they face.
“They stalk and blackmail foreign companies when they feel they need more money, hard currency, or more taxes to run parts of the country. ”
The economic system in many African countries poses a real challenge to the wealthy, as the legal framework governing investment relations is linked to the survival or demise of power in a highly volatile political environment.
Important indicators
136,000 people in Africa have assets of more than $1 million, of whom about 7,000 have assets of more than $10 million and 305 have assets of more than $100 million.
21 individuals in Africa have net assets of more than $1 billion, most of whose investments are in real estate, mining, telecommunications, luxury goods trading and agriculture.
39,000 South Africans own $651 billion in South Africa, of which $370 billion is concentrated in Johannesburg and Cape Town, the two richest cities in Africa.
• 27% decline in private wealth in Nigeria over the past 10 years, and 10,000 private Nigerians currently own about $228 billion.
We hope to be able to convey the full details of two small countries that are driving strong growth in Africa ’ s private wealth.
In God ’ s care and protection.
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