Africa has experienced a decline in foreign direct investment (FDI) in recent years, with a 16% decline in 2020 to $40 billion.

However, there are signs of recovery, with FDI increasing by 11% over the past year, reaching $45 billion in 2022.

The energy sector remains a crucial area for investment, particularly in North Africa, where countries like Egypt and Morocco have attracted significant investments.

Egypt, for instance, has seen a significant increase in foreign investment, with FDI expected to reach $10 billion, and has committed $5 million to new and renewable energy projects.

The African Continental Free Trade Area (AfCFTA) is expected to create a single market of 1.7 billion people by 2030, further attracting foreign investment.

In terms of job market impact, foreign investment in Africa has led to the creation of new job opportunities, particularly in the renewable energy sector, with Africa owning 45% of the world's renewable energy.

However, the continent still faces challenges, including a lack of skilled labor and infrastructure, which can hinder the attractiveness of foreign investment.

To address these challenges, African countries need to improve their infrastructure, provide incentives for investment, and develop policies that promote job creation and career advancement.

Special Economic Zones (SEZs) can attract FDI and retain talent in Africa, providing investment-friendly laws and protection of private property.

The West Africa Trade & Investment Hub has facilitated $140 million in trade and investment, indicating the potential for foreign investment in the region.

Nigeria has seen a significant surge in energy usage, exploring alternate sources, and Ghana has experienced growth in consumer expenditure and exports, driven by agriculture.

Barika and Kraft have participated in green energy, hospitality, fin-tech, and agriculture projects, providing financing services to global clients focusing on West Africa.

The African Development Bank has committed $5 million to new and renewable energy projects, and international partnerships have enabled technology transfer and connected local partners.

Egypt has provided a suitable investment climate to attract new investments and build confidence, and the country's net foreign direct investment is expected to rise to 2.5% of GDP.

South Africa has seen a decline in inward FDI flows since 2010, except in 2021, and the country aims to reduce the cost of doing business for foreign investors.

Ethiopia's investment in infrastructure has contributed to its growth and attracted FDI, but the country faces a critical power crisis with frequent blackouts.

Zambia has offered tax exemptions for dividends on farming profits for the first five years, and the country's poor infrastructure is a barrier to investment.

Liberia has the most generous incentive regime in Africa for investors and has seen a drop in inflation from 31% to 6%.

The US has invested $2.5 billion in South Korea in the 1950s, boosting its economy, and has pledged to provide $100 billion to help countries adapt to climate change.

The Via Reservoir Project is a flagship carbon-saving renewable energy project, and Liberia is moving towards a national switch in the digital space to boost the digital economy.

Africa's share of public-private partnerships is small and concentrated in 7 countries, and geopolitical interest in Africa can catalyze investment flows to the continent.

The G7 launched a USD 600 billion PGII initiative for Africa's infrastructure, aiming to mobilize USD 200 billion for Africa's infrastructure over five years.

The US accounts for 38% of global investors in African infrastructure, and has launched the "Prosper Africa initiative" for reciprocal trade and investments.

The EU announced EUR 150 billion investment funding for Africa, while the UK invested GBP 2 billion in Africa through British International Investment.

The Just Energy Transition Partnership committed USD 8.5 billion for South Africa, highlighting the focus on energy investments in the continent.

Africa's infrastructure investment gap is estimated at USD 100 billion per year, with the African Development Bank noting that DFIs anchor the infrastructure ecosystem in Africa.

The US announced a USD 2 billion solar energy project in Angola, demonstrating the growing interest in renewable energy investments in Africa.

The African Development Bank committed $5 million to new energy projects, and Egypt attracted investments through international partnerships and incentives.

Kenya attracted $21 billion in energy investments in a short time, showcasing the potential for renewable energy investments in the country.

The African Development Bank coordinated $32.8 billion investments, with a focus on sectors such as agriculture, energy, and healthcare.

The Lagos-Abidjan highway project, worth $15.6 billion, was announced, highlighting the investment in infrastructure development in West Africa.

The UK invested £2.3bn in Africa from 2020-21, with a focus on projects such as the Cameroon road widening project and the Kumasi Market in Ghana.

The UAE seeks investment with African countries, with a focus on sectors such as agriculture, minerals, and renewable energy, and has discussed trade with 21 African COMESA member countries.

China has been a significant investor in Africa, with $23 billion in financing for African infrastructure projects, and has provided $300 billion worth of African imports from 2021-2024.

The China-Africa Investment Conference was held in Nairobi, Kenya, on May 9, 2024, with 10 cooperation projects signed worth $295 million US dollars.

China-Africa trade volume reached $282 billion in 2022, with China being Africa's largest trading partner for 14 years, and 53 African countries participating in the China-Africa Economic and Trade Expo.

The International Finance Corporation aims to mobilise $10bn annual investment in Africa by 2030, with a focus on sectors such as infrastructure and healthcare.

The African Continental Free Trade Area is expected to be operational by 2030, with intra-African trade currently accounting for 15% of total trade, and the AfDB aims to boost intra-African trade through infrastructure investment.

Foreign direct investment in Africa declined by 16% in 2020 to $40 billion, but is projected to grow by 5% in 2021, with China slowing down its investments in Africa.

The US proposed the "Build Back Better World" initiative for Africa, with the G7 increasing support to Africa and the Indo Pacific, and Chinese financiers committed $153 billion to Africa between 2000 and 2019.

China has diplomatic relations with 53 African countries, and has established 61 Confucius Institutes in Africa, with Chinese businesses planning to invest $10 billion in Africa over three years.

China pledged to provide one billion doses of COVID vaccines to Africa, and Chinese companies in Africa plan to create 800,000 local jobs, with China committing $200 billion to lift Africa from poverty.

Africa's economy grew 5 percent annually over the past decade.

Sub-Saharan Africa is home to over 1 billion people, half of whom will be under 25 by 2050.

Google plans to invest $1 billion to support digital transformation in Africa.

Spear Capital is excited about opportunities in the ESG space in Africa.

Kenya and Nigeria are big-market regions with high growth opportunities.

Ghana is a tech hub within sub-Saharan Africa with a growing financial services industry.

Mauritius is the top-ranked economy in sub-Saharan Africa for ease of doing business.

Africa has led the world in technology-led innovation in banking and telecoms.

The continent has as many cities as Europe with a population of over one million.

West Africa is increasingly recognized as an area of economic and growth interest.

Talent shortages affect 78% of sectors as of 2022, with in-demand talent including IT and administration jobs.

Private companies must upskill workers to tackle unemployment, and junior graduates need real-life skill development opportunities.

Partnerships with SETAs and NPOs can aid skills development, and investing in talent builds loyalty and empowers the next generation.

Managerial skills development is crucial for graduate growth, and graduate programmes should focus on skills and confidence.

Ghana and Nigeria are top investment destinations in Africa due to their growth potential.

Agriculture is the most promising area for investment in Africa, with cash investment being the preferred form of FDI.

The Dubai Chamber hosts the African Business Forum to stimulate partnerships, and Expo 2020 Dubai features African business opportunities and investments.

Africa offers commercial opportunities for the global business community, with investment opportunities available in various African countries.

Africa's trade growth offers business opportunities despite slow global growth, with the AfCFTA creating a $3.4 trillion borderless market.

Africa's population is expected to reach 1.7 billion by 2030, with 34% of African households living below the international poverty line.

Africa's untapped export potential is $21.9 billion, and Nigeria, Egypt, and South Africa are expected to be the largest consumer markets by 2030.

Africa is the fastest-growing mobile telecom market in the world, with mobile money accounts in Africa making up over 50% of the global total.

Africa's industrial production can double to $1 trillion within a decade, and the continent's urban population is expected to double by 2050.

Africa's youth unemployment rate is 60 percent, with 75 percent of the population under 35.

Kenya's unemployment rate increased from 6 to 6.6 percent in 2021, with six million Kenyan youth being inactive, not employed, or looking for work [35

Africa has experienced a decline in foreign direct investment (FDI) in recent years, with a 16% decline in 2020 to $40 billion.

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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.

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However, there are signs of recovery, with FDI increasing by 11% over the past year, reaching $45 billion in 2022.

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Content: Chairman of the Board of Directors and Editors
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It has reached $11 billion.
UN highlights doubling of foreign direct investment in Egypt
The United Nations Trade and Development Board (UNCTAD) said in its annual report on foreign direct investment flows for the year 2022, on Wednesday in Geneva, that Egypt witnessed an increase in foreign direct investment more than doubled to $11 billion as a result of increased cross-border M & A sales.
Investment flows to Africa fell to $45 billion in 2022 from a record $80 billion in 2021 and accounted for 3.5 percent of global foreign direct investment, the report said, adding that international project financing deals targeting Africa showed a 47 percent drop in value.
The report pointed out that the number of announcements of new projects increased by 39% to 766, and that six of the 15 largest new investment mega projects (those worth more than $10 billion) announced in 2022 were in Africa, stressing that Egypt witnessed an increase in foreign direct investment more than doubled to $11 billion as a result of increased cross-border M & A sales.
The number of new projects has more than doubled to 161, and the value of international project financing transactions has increased by two-thirds to $24 billion.
FDI inflows have risen over the past five years in four of the continent ’ s regional economic groupings, with FDI in the Common Market for Eastern and Southern Africa (COMESA) growing by 14% to $22 billion, and inflows also rising in the Southern African Development Community (SADC) (quadrupled to $10 billion) and the West African Economic and Monetary Union (WEMU) (doubled to $5.2 billion). East African Community (up 9% to $3.8 billion).
According to the report, the largest increase in 2022 was in new field projects announced in energy and gas supply (to $120 billion from $24 billion in 2021), and the value of projects in construction and extractive industries rose to $24 billion and $21 billion, respectively, while the information and communication sector recorded the largest number of projects.
European investors remain by far the largest owners of FDI in Africa, led by the United Kingdom ($60 billion), France ($54 billion) and the Netherlands ($54 billion).

What trends are emerging for African startups in 2022?

The energy sector remains a crucial area for investment, particularly in North Africa, where countries like Egypt and Morocco have attracted significant investments.

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Content: Economy and Markets
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The world is facing a new test to face climate change « Graf »
Many international reports have identified the serious impacts of climate change on human lives.
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The world is looking forward to the 26th session of the Conference of the Parties to the United Nations Convention on Climate Change on November 1 in Glasgow, United Kingdom, to discuss the serious effects of climate change on human lives and discuss international commitments to reduce carbon dioxide emissions to reduce those changes.
The holding of the various sessions of this international event raises many questions about its importance and the extent of the serious commitment of the major industrial countries to its results, reduce emissions and implement green projects, especially as this affects their industrial plans and costs to implement these projects.
This comes as many international reports have identified the serious effects of climate change on human lives, the most recent of which is a report issued by the International Monetary Fund, in which the average temperature in all countries of the Middle East and Central Asia is expected to rise by 2050 even if a significant reduction in global emissions can be achieved, pointing out that the decline and increasing changes in rainfall movement will exacerbate the challenges resulting from water scarcity.
Dr. Mohamed Bagha, professor of finance and investment at Suez Canal University, said that international commitments may be announced in favor of addressing the problem, but they may not be committed by countries, as happened when US President Donald Trump canceled his country ’ s participation in the Paris Agreement on climate change, which affected the commitments taken by other countries and their desire to implement green projects.
US President Donald Trump announced in 2017 his country ’ s withdrawal from the Paris climate agreement, stressing that he rejects anything that could stand in the way of “reviving the US economy, ” noting that it is time to give the US“ priority over Paris and France. ”
But as soon as new President Joe Biden came to the White House after being sworn in, he issued a decree bringing the United States back to the Paris climate agreement earlier this year.
Sustainable financing
In his statements to Al-Mal, Bagha pointed out that the sustainable financing provided by international institutions for environmental projects is focused on the commitment of countries to implement three elements: governance, social responsibility and the environment.
So the issue here is the extent of the commitment of countries to these three elements, and whether companies listed on the stock exchanges of those countries provide a list of agreed items to preserve the environment and whether the lists of financial positions of companies include environmental and sustainability reports and how to dispose of their waste, stressing that some countries adhere to these dimensions while others do not.
He said that we should not rely on the major industrial countries because they are pragmatic countries in the first place and the industry sector occupies a very important position there, pointing out that for example, the conflict between the United States and China is basically a conflict of the telecommunications sector such as 5G networks and what is talked about that those networks enable the control of humans.
He stressed that one of the international standards that have become advocated by international banks when financing any project is the issue of the green economy, pointing out that the world began to feel the seriousness of the impact of climate change already, for example, summer became hot compared to previous times, and the globe witnessed changes in its topography and began to dry up certain rivers such as the Tigris and Euphrates. of crops and thawing ice and rain in summer.
Read also because of climate change.
Fossil fuel revenues decline will fuel tensions in Middle East
He cited, for example, the problem Egypt experienced last year: the impact on mango production.
He pointed out that the United Nations is organizing another summit to address the climate issue on the sidelines of its meetings, pointing out that Egypt is currently developing its infrastructure and this is part of the contributions to combat climate change.
He added that Egypt was one of the first countries to present a vision for preserving the environment and environmental sustainability due to the real threat of the problem to the world and human lives.
Climate change could force 216 million people in six regions to migrate within their own borders by 2050
The World Bank released a report in late September that concluded that climate change could force 216 million people in six regions of the world to move within their own borders by 2050, noting that hotspots of internal migration caused by climate change could emerge by 2030 and continue to spread and worsen by 2050.
Rapid action to take immediate and coordinated action to reduce global greenhouse gas emissions and support inclusive and resilient green development could reduce the scale of climate change migration by up to 80%, the World Bank report said.
By 2050, Sub-Saharan Africa could see up to 86 million people forced into internal migration due to climate change, East Asia and the Pacific (49 million), South Asia (40 million), North Africa (19 million), Latin America (17 million) and Eastern Europe and Central Asia (5 million).
The COVID-19 epidemic led to an economic contraction in the North African region last year except Egypt, the World Bank report said, noting that extreme poverty has declined in the region over the past two decades.
North Africa includes Algeria, Egypt, Libya, Morocco and Tunisia.
The five countries have made strides in recent decades to reduce poverty and income inequality, as well as in taking broader development measures such as educational attainment and child mortality, the bank said.
These gains have been achieved by expanding public spending, services and employment, and countries have also relied on subsidies, particularly in energy, to boost economic growth and expand access to resources.
Effects of Climate Change on North Africa
The results of the changes in the region show water availability as a key driver of internal climate migration that pushes people out of coastal and inland areas where water has become more scarce, slowing population growth in external climate migration hotspots along Tunisia ’ s northeast coast, Algeria ’ s northwest coast and western and southern Morocco.
In Egypt, he said, the eastern and western parts of the Nile Delta, including Alexandria, could become hot spots for external migration due to low water availability and rising sea level, and at the same time, many places with better water availability are expected to become hot spots for internal migration, including important urban centers such as Cairo, Algeria, Tunisia, Tripoli, the Casablanca – Rabat corridor and Tangier.
Read also iron and cement prices on Saturday 23-10-2021
The industrial, public and service sectors concentrated in urban centres support the livelihoods of many North Africans, and recent institutional and legal reforms in those countries aim to diversify economies.
As a result, FDI has increased, and inflows to Morocco, for example, have helped modernize the economy and improve performance in key industries, particularly in finance, renewable energy, infrastructure and automobiles.
Importance of the Energy Sector
The energy sector remains of paramount importance to North Africa, especially oil and gas, with Morocco, Tunisia and Egypt being oil importers, while Algeria and Libya are oil exporters.
There are transboundary aquifers shared by many neighboring countries and are already a global hotspot for sustainable use challenges of both groundwater and surface water; for example, an aquifer is shared between Libya, Egypt, Chad and Sudan, and a groundwater system in the northern Western Sahara is shared between Algeria, Libya and Tunisia.
The report noted that women ’ s labor force participation rates in the North African region are among the lowest in the world, ranging from 19% in Algeria to 37% in Libya as of 2019.
Environmental stress, including water scarcity, associated stresses on agriculture and water, and accelerated desertification and land degradation, may actually lead to increased internal mobility, a study based on household surveys said perceptions of worsening climate change are linked to a greater likelihood of temporary migration; in Algeria and Morocco, more than 70 percent of households surveyed saw rainfall as more volatile and higher temperatures, while in Egypt, where irrigation is more prevalent. The percentage was 40%.
Severe climate phenomenon
In addition, almost all households indicated that they were exposed to a severe climatic phenomenon, with losses of income, crops and livestock being listed as the main economic impacts.
However, focus groups highlighted that other factors play a bigger role in the decision to move – including a lack of jobs and services – and that migration is not necessarily the first strategy used to deal with adverse weather events.
Remittances from internal and international migrants are an important source of education funding for many families, and many people migrate to make money to pay for education, the report said, adding that despite the coronavirus epidemic, remittance flows to the region grew modestly in 2020, but flows to Egypt and Morocco were strong.
Did the rich countries honor the Copenhagen pledges of $100 billion?
The question is whether rich countries committed to what they announced in 2009, at the Copenhagen climate conference, to raise the value of assistance to countries of the South in the fight against climate change to $100 billion a year by 2020, to help take action to adapt and reduce emissions.
READ ALSO: UAE ’ s agricultural exports hit $131 million last season
The importance of establishing a strong carbon pricing system
In this context, IMF Managing Director Kristalina Georgieva stressed that the global economy needs market signals that work in favor of the new climate economy, not against it, pointing out that despite the political difficulties, there is a need to liberate from all forms of support for fossil fuel products. The equivalent of more than $5 trillion a year, although the cost is much higher for our future.
A strong carbon pricing system will help redirect private sector investment and innovation towards clean technology and promote energy efficiency.
Otherwise, we simply won ’ t be able to achieve the goals of the Paris Agreement on Climate Change, and the IMF ’ s director stressed that this price signal must gain more traction toward the path — to reach an average working carbon price of $75 per ton by 2030. It is much higher than the current price of $3 per ton.
An agreement among major emitters on a minimum price for carbon would be a good start.
She stressed that we need to intensify green investments.
A research study by IMF experts predicts that green supply chain policies could increase global GDP by about 2% this decade and create millions of new jobs.
We must work to achieve an equitable transition to a low-carbon economy within and between countries; for example, revenues generated from carbon pricing can be used in cash transfers, social safety nets, retraining, etc. Compensation for workers and businesses in high-carbon sectors.
Across countries, a just transition will require financial support and green technology transfers.
Although the world's poorest countries were the least contributors to climate change, they were the most vulnerable to its consequences and least able to afford adaptation. Since many of the least costly mitigation opportunities existed in emerging market and developing economies, it was important for developed countries to meet their commitments. Providing $100 billion a year to finance climate activities in developing countries would be in the interest of the whole world.
We have no time to waste, and we must be ready to act decisively together.
Three Middle East countries successfully develop national climate change strategies
In a recent report, the IMF said that while several countries in the Middle East and Central Asia have successfully developed national climate change strategies, such as Egypt, Saudi Arabia and the United Arab Emirates, many countries in the region are still in the early stages of developing national climate change adaptation plans.
According to the IMF ’ s AFAC regional report for the Middle East and Central Asia, it is necessary to accelerate these efforts, adding that regional cooperation between countries will support national efforts to adapt to climate change, reduce emissions, manage transitional risks, create green investment opportunities and create jobs.
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What trends are emerging for African startups in 2022?

Which African countries are driving the venture capital ecosystem?

Egypt, for instance, has seen a significant increase in foreign investment, with FDI expected to reach $10 billion, and has committed $5 million to new and renewable energy projects.

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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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What trends are emerging for African startups in 2022?

Which African countries are driving the venture capital ecosystem?

The African Continental Free Trade Area (AfCFTA) is expected to create a single market of 1.7 billion people by 2030, further attracting foreign investment.

Title:

Content: South Africa supports calls for global co-operation to boost trade and address economic challenges and climate change

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Johannesburg, South Africa – 23 January 2023: The 53rd Annual Meeting of the World Economic Forum (WEF) in Davos, Switzerland, concluded on Friday, 20 January 2023. World leaders and corporate executives expressed hope that the looming recession facing the global economy could be avoided if countries collaborated to boost global trade and investment.

A high-level South African government and business delegation has returned home from the meeting more upbeat than before that the current economic slowdown and rising inflation could be resolved if nations addressed global supply disruptions that are leading to commodity shortages and driving up energy and food prices.

The delegation was led by Minister of Finance, Enoch Godongwana, who was accompanied by leaders of South Africa’s major corporations operating in various sectors of the economy. The delegation also included Minister of Trade, Industry and Competition, Ebrahim Patel; Minister of International Relations and Cooperation, Naledi Pandor; and Minister of Human Settlements, Mmamoloko Kubayi.

This year’s WEF Annual Meeting was held under the theme “Cooperation in a Fragmented World” and covered many interconnected topics including the impact of the ongoing Russia-Ukraine war on the commodity markets, skyrocketing cost of living caused by rising inflation and monetary policy tightening by central banks, climate change, and the growing impact of artificial intelligence (AI) on workplaces and labour markets.

“The South African delegation did a fantastic job in Davos where it sold our country to global investors as a favourable market to do business and invest in. Notwithstanding the energy supply constraints that our country is currently grappling with, South Africa remains an attractive investment destination given its excellent infrastructure, sophisticated financial markets, and a skilled workforce,” says Sithembile Ntombela, Acting CEO of Brand South Africa.

The South African government is currently implementing structural reforms that have opened the energy sector to private investment to boost energy generation and bring an end to load-shedding that is constraining the economy.

“The structural reforms that are currently being implemented by the government are making progress in removing investment bottlenecks and reducing the cost of doing business. These reforms will enable South Africa, a preferred destination by local investors and global multinationals looking to expand across Africa, to take advantage of the opportunities presented by the African Continental Free Trade Area (AfCFTA),” says Ntombela.

The AfCFTA, which officially launched in 2021, will create the world’s largest free trade area, stimulate intra-African trade, develop regional value chains, and promote industrialisation across the continent.

The AfCFTA Secretariat and WEF revealed in a report unveiled at this year’s Davos meeting that AfCFTA is projected to create single market that will grow to 1.7 billion people and $6.7 trillion in consumer and business spending by 2030.

By 2050, the continent is estimated to be home to 2.5 billion people and a market with a combined business and consumer spending of $16.12 trillion.

The report titled “A New Era for Global Business and Investment in Africa” lists four high-potential sectors that hold lucrative opportunities for companies looking to invest in Africa.

These sectors are automotive, agriculture and agro-processing, pharmaceuticals, and transport and logistics, which are all expected to see rapid growth in terms of production and trade volumes under AfCFTA.

“Given that South Africa is the most industrialised and sophisticated economy in Africa, it is well positioned to take advantage of opportunities presented by AfCFTA. The development of the free trade area will require massive investment in logistics and telecommunications infrastructure to reduce the cost of doing business and enable free movement of people, goods and services,” explains Ntombela.

With the green energy transition and digital transition in full motion around the world, the delegation that represented South Africa at WEF2023 expressed support for calls to reskill and upskill workforces, particularly the youth, to prepare them for future workplaces and to mitigate job losses.

The delegation is impressed by the progress made by the WEF’s Reskilling Revolution; an initiative launched in 2020 to empower 1 billion people. So far, the initiative has reached 350 million people.

Climate change also took centre stage at WEF with world leaders and business executives committing themselves to supporting the implementation of the Paris Agreement, which calls on all countries to cut carbon emissions to limit global warming to around 1.5 degrees celsius and strive towards attaining net zero emissions by 2050.

This commitment requires countries and businesses to move away from using fossil fuel energy sources like coal and crude oil and adopting clean and environmentally friendly energy sources such as wind and solar power.

The launch of the new Coalition of Trade Ministers on Climate, which brings together over 50 countries, was also a highlight of this year’s  WEF annual meeting.

The coalition aims to tackle climate change by promoting trade and investment that encourages adoption of goods, services, and technologies that mitigate climate change in both developed and developing countries.

“However, the global challenges that were highlighted at WEF 2023 cannot be resolved in a fragmented world in which countries are pulling in different directions. These challenges require collaboration and unity by the nations of the world, where counties are working together to find solutions in an integrated global economy,” concludes Ntombela.

Ends/////

Issued by Brand South Africa

Notes to the Editor

Contact: Phindi Mathebula

Email:phindilem@brandsouthafrica.com

Mobile number: +27 64 890 7414

About Brand South Africa

Brand South Africa is the official marketing agency of South Africa, with a mandate to build the country’s brand reputation, to improve its global competitiveness. Its aim is also to build pride and patriotism among South Africans, to contribute to social cohesion and nation brand ambassadorship.

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In terms of job market impact, foreign investment in Africa has led to the creation of new job opportunities, particularly in the renewable energy sector, with Africa owning 45% of the world's renewable energy.

However, the continent still faces challenges, including a lack of skilled labor and infrastructure, which can hinder the attractiveness of foreign investment.

Title:

Content: Part I: Attracting Foreign Investment into Africa may not come from the Sweet Stories we tell Foreigners

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By Edward Chisanga

I attended an Investment Forum in Utopia last week where Utopian countries had a rare opportunity to speak their minds out to foreigners who had attended in large numbers together with their Heads of State. The Master of ceremony began by introducing the private sector from rich countries present from France, UK, USA, Germany, Netherlands, and others from the EU membership before turning to the Utopian Heads of State and their groups.

What Foreign Investors Heard

Then he called upon one Utopian Head of State to speak on behalf of all the fifty-five African countries in attendance to list compelling factors that would captivate foreign investors from rich countries to go and invest in Africa.

The President began, “Africa is a huge piece of land, most of which is underutilized. All the countries that I represent here boast of huge land available for you investors. Come and invest in Africa, the continent of the future.” Then the President turned to one of the Presidents in his group and allowed him to speak about his country’s promotion of investment.

“Zambia has one of the most open trade environments in Africa and is a member of the Southern Africa Development Community (SADC) and the Common Markets for Eastern and Southern Africa (COMESA). Businesses in Zambia benefit from one of the lowest profit taxes in the region. Increasing regional cooperation through multilateral organisations, including SADC and the African Union should continue to reduce the likelihood of interstate conflict.” Then he highlighted ‘Some of the government incentives to FDI as:

  1. Dividends paid out on farming profits are exempt for the first five years of activity.
  2. Initial allowance of 10% on capital expenditure incurred on the construction or improvement of an industrial building is deductible.
  3. Foreign exchange losses of a capital nature incurred on borrowings used for the building and construction of an industrial or commercial building are tax deductible.
  4. Income earned by companies in the first year of listing on the Lusaka stock exchange qualifies for a 2% discount on the applicable company tax rate in the particular sector. However, companies with more than 1/3 of their shareholding in the hands of Zambians qualify for a 7% discount.
  5. Implements, machinery and plant used for farming, manufacturing or tourism qualify for wear and tear allowance of 50% of the cost per year in the first two years of activity.

He continued, “Investors who invest at least USD250,000 in any sector or product not provided for as a priority sector or product, is entitled to non-fiscal incentives such as investment guarantees and protection against state nationalization and protection against non-commercial risks (Zambia is a signatory of Multilateral Investment Guarantee Agency).”

Then the moderating African President turned to South Africa’s President and gave him the floor. President Cyril Ramaphosa was quick and went straight to the point by referring his audience to his weekly newsletter output, ‘From the Desk of the President,’ and repeated the points he recently made in the United Kingdom, “Government has a bold vision to be a destination of choice for foreign direct investment and this requires far-reaching reforms. These include reducing the cost of doing business for both large and small businesses, improving the quality of South Africa’s institutions, enhancing administrative efficiency and governance systems.”

When the turn of the Ethiopian Prime Minister came, he repeated what he had said at the 2019 Davos Meeting in Switzerland, “Investment in infrastructure has contributed a lot to the growth and attracted FDI, making Ethiopia one of the leading FDI destinations in Africa.”

Based on what the three African countries presented as their selling points to attract FDI, the President speaking on behalf of Africa retorted, “The three African countries that have just spoken present a strong representative basis for me to conclude that Africa is ripe and ready for FDI. “You have heard yourselves from the horses’ mouths,” He proudly said. “There’re similar incentives in Rwanda, Benin, Lesotho, Burkina Faso and all other countries. It’s time for you to come and invest in Africa.”

What Foreign Investors do not hear.

Despite the repeated sweet stories coming from African leaders, there’re equally important things that Foreign Investor don’t hear but that they are aware of.
About Zambia, an UNCTAD Investment Report reports, “Zambia’s infrastructure, whose poor quality is a barrier to investment, should be strengthened by investments in the road network, railways and the construction of power plants. In 2021, a USD 11 billion standard gauge railway project was announced in Zambia, involving US capital, which would expand essential transport links with the outside world. The regulatory environment does not favour entrepreneurial activity, the requirements for commercial licenses being long and costly, and the application of regulations not being uniform. In addition, the protection of property rights and the enforcement of contracts are still weak by international standards.”

As the author of this article is a Zambian living in Zambia, he is aware of the challenges coming the country’s energy sector. We have loadshedding in Zambia which Foreign Investors are aware of. They’re aware that the Mining sector, the country’s brain earner depends on use of energy, yet it is not exempted from malady of shortages. Equally, they know how much Zambia’s private sector suffers from energy shortage and its effect on business.

In South Africa, despite sweet stories, except only in 2021inward FDI flows have been declining significantly since 2010 as Figure 1 below shows. Even if this dwindling trend were to be attributed to other factors, the deteriorating energy situation in South Africa is playing a multiplier effect on FDI and the overall economy. Yet, South Africa like other African countries’ Heads of State turn a blind eye on the matter. As for many other things going unwell, they simply don’t tell the truth about the energy crisis.

In Ethiopia, Laments Omer Redi, “The crisis in the power supply has reached such a critical point that blackouts now occur every other day.” Fortune adds, “It is obvious that Ethiopia is now in such a serious power crisis that it has been forced to introduce load shedding.” There are other voices no longer silent. Said Kevin Daly of London based investment company, “Ethiopia is uninventable now. The political situation is very tenuous, and there is a lack of information and clarity on the economy, and on how things are going to be resolved.”

Concluding

Policy coherence is defined by the OECD as, “The systematic promotion of mutually reinforcing policy actions across government departments and agencies creating synergies towards achieving the agreed objectives.” The wonderful incentive packages must be complemented with other key inputs to build a whole.

For example, just as a motor vehicle cannot move smoothly if one key part falls off, you cannot attract adequate FDI with a list of incentives only when the energy sector, upon which industry depends is in crisis. Fix energy, infrastructure, human skills, corruption, rule of law, security, etc to arrive at a complete package of what attracts FDI. FDI goes to Asia because there’s no infrastructure, human capital, or energy crisis.

All these are well built. Asia also has bigger land than Africa. We cannot keep on using obsolete factors that are abandoned by others to attract FDI. It’s like always saying, “Come to Zambia and see the Victoria Falls.” Foreign Tourists now go to beautiful cities without dust, simply to visit, feel safe and talk to honest and humble citizens with Asians largely qualifying in almost all these. Our cities, including Livingstone, are not ripe for serious tourism that builds wealth.

Foreign Investors or tourists are not our uncles on whose shoulders we will simply cry and await their positive response. They will not come simply because we are democratic and shout that Zambia is ready for business. They are not cajoled by sympathy or simply because Zambia’s leadership change occurs smoothly. They have not come since change from Kaunda to Chiluba or Chiluba to Banda or Banda to Sata which were all peaceful and democratic. We must understand what their needs are. If we don’t provide, they’ll go to Asia.

To address these challenges, African countries need to improve their infrastructure, provide incentives for investment, and develop policies that promote job creation and career advancement.

Special Economic Zones (SEZs) can attract FDI and retain talent in Africa, providing investment-friendly laws and protection of private property.

Title:

Content: Free zones may be Africa’s best chance to accelerate wealth creation

By Sylvia Brune

Co-founder of AHOY – a flight booking and concierge app – Sylvia Brune discusses why free zones may be Africa’s best chance to accelerate wealth.

Given the demand for goods and services from Africa’s growing middle classes, the continent has huge potential for growth. Over the past year, Foreign Direct Investment (FDI) into Africa grew by 11%, bucking the global trend and potentially setting a bright precedent for the future.

Whether this upwards trend in FDI will have a positive effect on growth and wealth creation is, however, still unknown. Studies have shown that capital has little impact on an undeveloped foundation. Key components needed to enhance capital’s productivity are infrastructure (not just physical), a stable and transparent legal framework, and skilled labour.

Where these are lacking, investors into the continent have to first ‘build’ the commercial foundation, before commencing their projects. Like spending money on hiring advisors, lawyers, and accountants to navigate the various countries’ economic environments, political systems, and bureaucracy. This adds time and uncertainty to projects, acting as an effective ‘tax’ on any return on investment - meaning only projects with a very high upside will be embarked upon.

Evidence suggests that these key components are indeed lacking across most of Africa, albeit with a small handful of countries on the road to improvement.

Countries, like Senegal and Côte d'Ivoire, have made important strides to improve anti-corruption institutions. Cabo Verde and Gambia have managed to gain local trust with 85% and 84% believing their government is fundamentally sound. And Mauritius and Rwanda have made it into the top 35 countries in the world as measured by economic and personal freedom, with Mauritius marginally beating Norway in the global ranking.

The reality is, however, that corruption continues to undermine the rule of law across most of Africa (which hosts 13 of the globe’s 20 most corrupt countries). Rule of law relates to strong property rights, government integrity, and judicial effectiveness - the basis for a sound investment environment. What is even worse than corruption’s effect on FDI, though, is its effect on retaining and developing talent.

Instability and lack of opportunity continues to result in brain-drain - drawing talent and skill away from the continent. The World Bank estimates one-in-nine Africans with a tertiary education live away from Africa – a 50% growth since the mid-00s.

So, what’s the solution?

Given the long, tough road ahead towards building economically sound environments across Africa, I believe the only solution in the short run, is establishing 100s of Special Economic Zones (SEZs) throughout the continent.

For those unfamiliar with SEZs, they are areas which operate under a different legal framework to the country they inhabit – with investment-friendly laws around commercial transactions, taxes, and the protection of private property. SEZs’ advantage is that you avoid building on top of broken legacy system, instead creating a pre-packaged, investor-ready climate.

These zones have been successfully tested and run in China and the Four Tigers (Hong Kong, Singapore, South Korea and Taiwan) to attract considerable FDI, and experience decades of double-digit growth. This format could likewise be used to boost and sustain investor interest in Africa.

SEE ALSO:

SEZs as talent hubs

While SEZs are known mostly as attractive investment environments, with conducive infrastructure and legal frameworks, the secret to their success rate is actually in their ability to attract and retain talent and skilled labour in specialised hubs.

China showed just how powerful an industry focus within SEZs can be. Because they provide a magnetic effect of highly specialised knowledge hubs - comprised of domestic, regional, and international talent.

Capital is like fuel, it’s only effective where there is a flame to throw it on. And that flame is talent.

The potential is clear, and I believe Africa has a burgeoning pool of talent waiting to be tapped into. But whether they are able to put their talents to best use, collaborate, and innovate freely is uncertain, and will determine whether they stay, or search for opportunities elsewhere.

A common hurdle, for example, is work visa rules between African countries, which means it’s easier for talent to find good opportunities outside Africa than within Africa. Talented individuals want to work alongside other talent. Similarly, talent and specialists from outside Africa face considerable barriers when trying to obtain work permits.

For example, Mr. Eazi’s emPawa Masterclass, like many creative undertakings, is dependent on bringing together the best talent. Earlier this year, emPawa struggled to bring artists, producers, and mentors together from across Africa. Due to visa rules and uncertain processing times, some were only provided with visas after the masterclass was already over, some not at all.

Here, again, SEZs are a solution. SEZs are able to receive visa allocations relating to their area of specialisation, which increases the likelihood of collaboration and innovation - which in turn attracts capital.

The Andela example

There’s plenty of evidence that talent wants to stay, provided there are the right conditions to do so. A great example is tech recruitment platform Andela, which proves that when start-ups in Africa have access to the best talent, including a global support network, and then tap into local opportunity, they can raise substantial foreign capital, and the local business community benefits as well.

Andela trains candidates for six months before pairing them with clients, many are the Fortune 500 and a number of Silicon Valley start-ups. So far, more than 90% of Andela’s first batch of alumni are still working in Nigeria.

SEZs would be able to turbocharge the work of companies like Andela. After talent has been developed, they need environments where they can make most use of their skills.

Already, countries like Mauritius, Senegal, and Rwanda have and are in the process of creating SEZs, with the view to building infrastructure, a stable legal framework, and enticing skilled labour – it’s an exciting time and I for one, am eager to see the results as more African countries follow their footsteps.

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The West Africa Trade & Investment Hub has facilitated $140 million in trade and investment, indicating the potential for foreign investment in the region.

Title:

Content: There were 1,560 press releases posted in the last 24 hours and 222,474 in the last 365 days.

Financially facilitating extra-ordinary businesses to participate in the Economic Boom of West Africa

Barika and Kraft, Dubai based financier talks about unprecedented opportunities that businesses face during the economic prosperity of the West African Region.

“Across our corporate base globally the interest in Africa is high and growing, and I would say it is about the level that it was in Asia 30 years ago.”
— Dominic Barton, global managing director of McKinsey & Company
DUBAI, UNITED ARAB EMIRATES, August 18, 2022 /EINPresswire.com/ -- As West Africa’s population booms, its economy continues to expand, the opportunities for businesses to trade across the region are vast. The rising need economy has presented various opportunities across all industries in West Africa. Previously an agriculturally driven economy is now facing a transition. Majority of the newly established businesses are catering the growing needs of the people of west Africa, which include industries such as Hospitality, Healthcare and Banking.

One of the catalysts and driving forces for this economic can be seen from active participation of the West Africa Trade & Investment Hub (Trade Hub, which is a 5-year, $140 million trade and investment facilitation activity designed to improve private sector productivity, profitability, and competitiveness in West Africa through market-based approaches. The West Africa Trade and Investment Hub is a one-stop shop that partners with banks/financial institutions to provide financial support and business development services, capacity building, and best practices with the aim of making businesses viable and export ready, through the African Growth Opportunity Act (AGOA).

One of the largest economies in West Africa, Nigeria has seen significant surge in Energy usage. The government has been looking at alternate sources of energy such as Solar & Waste-to-Energy plants which has led to the inception of green power projects across the region. Barika and Kraft has been actively participating in this sector with a multitude of projects securing Seed-funding under the patronage of Barika and Kraft.

Apart from Nigeria, another nation observing a significant spike in economic prosperity is Ghana. Consumer expenditure has seen a large growth which is an early sign of nation-wide development. This west African nation is seeing a remarkable growth in exports as their dominant industry being Agriculture has undergone immense technological advancements which has benefited local farms to increase their yields. A lot of entrepreneurs are capturing the opportunity of being the first mover to establish/grow their presence in Ghana and Barika and Kraft has been actively reviewing opportunities of participation.

A representative from Barika and Kraft has informed us that there are a magnitude of projects currently being presented on a daily basis. Barika and Kraft focus on sourcing financial resources to the best of the projects that present their competence. Current projects that Barika and Kraft participate in include Green Energy, Hospitality, Fin-Tech, and Agriculture.

Barika and Kraft is a Dubai-based company providing financing services to global clients. More information is available by visiting its website at www.barika-kraft.com or email: info@barika-kraft.com

VALERY GARCIA
BARIKA AND KRAFT
vg@barika-kraft.com
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What trends are emerging for African startups in 2022?

Nigeria has seen a significant surge in energy usage, exploring alternate sources, and Ghana has experienced growth in consumer expenditure and exports, driven by agriculture.

Barika and Kraft have participated in green energy, hospitality, fin-tech, and agriculture projects, providing financing services to global clients focusing on West Africa.

The African Development Bank has committed $5 million to new and renewable energy projects, and international partnerships have enabled technology transfer and connected local partners.

Egypt has provided a suitable investment climate to attract new investments and build confidence, and the country's net foreign direct investment is expected to rise to 2.5% of GDP.

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.

Which African countries are driving the venture capital ecosystem?

South Africa has seen a decline in inward FDI flows since 2010, except in 2021, and the country aims to reduce the cost of doing business for foreign investors.

Ethiopia's investment in infrastructure has contributed to its growth and attracted FDI, but the country faces a critical power crisis with frequent blackouts.

Zambia has offered tax exemptions for dividends on farming profits for the first five years, and the country's poor infrastructure is a barrier to investment.

Liberia has the most generous incentive regime in Africa for investors and has seen a drop in inflation from 31% to 6%.

Title:

Content: Africa: Finance Minister Samuel Tweah Outlines Issues Affecting Investments in Africa At Choiesul Forum

Nice — Finance Minister Samuel Tweah was among four speakers chosen to open the CHOIESUL FORUM.

The Choiseul Africa Business Forum, a place of cross-fertilization, aims to give key for analysing the growth-generating sectors in Africa and gather, on an interactive mode, African and European leaders to develop a collective intelligence and to contribute to the opening of new scopes of partnerships with the continent.

Speaking to investors Min. Tweah made a compelling case for Africa and Liberia, to thunderous applause from the audience.

He argued that investment challenges in Africa are far more than business climate issues. He argued they are also geopolitical. Geopolitical intetest in Africa from big powers can catalyze investment flows to Africa. He noted that this happened for South Korea which received from the US some USD 2.5 billion in the 50's, an amount that was equal to what the World Bank lent to all countries in the same year.

Minister Tweah noted that Africa has also received only 3 percent of OFFICIAL DEVLOPMENT ASSISTANCE since 1960, wondering if Africa is receiving such paltry amount where has aid been going, with the audience bursting in applause.

He further argued that AFRICA'S share of PPPis small and is concentrated in only 7 countries, saying that if investors went by that statistics, they would be investing in only 7 countries.

For Liberia, the minister presented Liberia as a commodity dependent country which rises and falls with the ups and downs of commodity prices of iron ore and rubber. He invited investors at the Forum to invest in value addition in Liberia as a way of stabilizing and growing the Liberian economy.

The Minister made the case for RUBBER and OIL PALM. He noted that just by adding a small 30 percent value to LIBERIAN RUBBER an investor can experience huge profit margins over current price levels.

Minister Tweah also touted the VIA RESERVOIR PROJECT as the FLAGSHIP CARBON SAVING RENEWABLE ENERGY PROJECT in the Energy sector, with the potential of producing as high as 800 megawatt of electricity. With the CLSG lines running through Cote d'ivoire Liberia Sierra Leone and and Guinea, the Mininier noted that investors should take a look at the feasibility report of this investment.

Minister Tweah informed investors that the Government of Liberia is moving toward a National switch in the digital space, an outcome that will provide boost for the digital economy. He invited digital companies and investors to follow this development.

Minister Tweah touted the recent macroeconomic. performance of Liberia as outstanding, describing the drop in inflation from 31 percent to 6 percent as arguably one of the greatest inflation collapses in history.

He noted that France and developed countries are taking a new look at Liberia on account of the strong policy decisions of the Government of President George Manneh Weah.

He described efforts to reform the Liberian business climate and the Judicial Conference led by Chief Justice Francis Korkpor.

Minister Tweah presented Liberia as having the most generous incentive regime in Africa for investors.

Prior to coming to NICE, MINISTER TWEAH held meetings with 10 companies in PARIS, who are looking to find opportunities in Liberia.

Minister Tweah returns to Liberia on Sunday where he is expect to join discussion on the national budget which is currently before the National Legislature.

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The G7 launched a USD 600 billion PGII initiative for Africa's infrastructure, aiming to mobilize USD 200 billion for Africa's infrastructure over five years.

Title:

Content: Africa Business World

Impact of G7’s multi-billion dollar plan on Africa’s infrastructure gap

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In late June 2022, it was announced at the G7 Summit in Germany that a USD 600 billion lending initiative, the Partnership for Global Infrastructure Initiative (PGII), would be launched to fund infrastructure projects in the developing world, with a particular focus on Africa.

The G7 countries – Canada, France, Germany, Italy, Japan, the United Kingdom (UK) and the United States (US) – explained the PGII would help address the infrastructure gap in developing countries.

The US

The US has recently renewed its focus on impact-building and financing strategic, long-term infrastructure projects in Africa, with the Export-Import Bank of the United States (EXIM) supporting infrastructure development on the continent. According to a 2020 report by McKinsey and Company – Solving Africa’s infrastructure paradox – the US accounts for 38% of global investors who have an appetite for African investment, by far the most of any country.

In 2021, the US launched a refreshed “Prosper Africa initiative”, focusing on improving reciprocal trade and investments that create jobs and build infrastructure between the two regions. In 2022, the US announced it would mobilise USD 200 billion over the next five years as part of the PGII, in the form of grants, financing and private sector investments. Some deals have already been announced, including, for example, a USD 2 billion solar energy project in Angola, and the building of multiple hospitals in Côte d’Ivoire.

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The EU

In February 2022, the European Commission announced investment funding for Africa worth EUR 150 billion. The funding package is part of the EU Global Gateway Investment Scheme and is said to be in the form of EU combined member funds, member state investments and capital from investment banks.

In early 2020, the European Commission published its Comprehensive Strategy with Africa, outlining the region’s plans for its new, stronger relationship with the continent. The strategy document laid out five top priorities for the EU in Africa: the green transition and improving access to energy; digital transformation; sustainable growth and jobs; peace and governance; and migration and mobility.

The UK

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The UK is also making a strong play for influence, investment and trade with Africa, post-Brexit. Further to key summits in 2020 and 2021, finance is being redirected into Africa from the UK. In 2022, UK development finance institution (DFI), British International Investment (formerly CDC Group), announced it had exceeded its pledge to invest GBP 2 billion in Africa over the last two years.

The UK’s Global Infrastructure Programme helps partner countries (including in the African continent) to build capacity to develop major infrastructure projects, setting up infrastructure projects for success and paving the way for UK companies to support these projects.

Further, in November 2021, it was announced that the governments of South Africa, France, Germany, the United Kingdom and the United States of America, along with the European Union, were in negotiations to form a long-term Just Energy Transition Partnership.

The partnership focuses on boosting the decarbonisation of the South African economy, with a commitment of USD 8.5 billion for first round financing. It is expected that 1-1.5 gigatonnes of emissions will be prevented over the next 20 years, assisting South Africa to accelerate its just transition. Discussions are also currently taking place to establish a similar partnership in Senegal.

African solutions

The African Development Bank noted in early 2022 that Africa’s infrastructure investment gap is estimated at more than USD 100 billion per year.

DFIs are increasingly anchoring the infrastructure ecosystem in Africa – serving a critical function for project finance as investment facilitator and a check on capital. DFIs can shoulder political risk and access government protections in a way that others cannot, enter markets others cannot and are uniquely capable of facilitating long-term lending.

The large amount of capital needed to fill the infrastructure gap, however, means that DFIs cannot bridge it alone. Private equity, local and regional banks, debt finance and specialist infrastructure funds are primed to enter the market, and multi-finance and blended solutions are expected to grow in popularity as a way to de-risk deals.

The African Union’s 55 member states have stated that their primary funding needs include support in terms of safety and security on the continent, as well help in implementing the African Continental Free Trade Agreement (AfCFTA) and the massive infrastructure investment it needs to be successful.

The development of supporting infrastructure is key to boosting AfCFTA’s free trade potential, especially in terms of transportation, energy provision, internet access and data services, education and healthcare infrastructure projects.

Infrastructure projects in Africa now also have a heightened focus on improving Africa’s capacity for green, low-carbon and sustainable development, via, for example, clean energy, community healthcare and support, green transport, sustainable water, wildlife protection and low-carbon development projects.

Funding such projects comes with responsibility –  projects must not only be bankable and yield attractive returns, but must also be sustainable and provide tangible benefits to local economies and communities. All of Africa’s major partners have noted they will prioritise projects that commit to Environmental, Social and Governance principles, and access to capital for large infrastructure projects is likely to contain sustainability requirements.

That the focus of the PGII is on the sustainability and the social impact of these projects in Africa is further evidenced in the White House briefing room statement issued at the launch in June 2022, where it was stated that the PGII will “mobilize hundreds of billions of dollars and deliver quality, sustainable infrastructure that makes a difference in people’s lives around the world…”

Author: Michael Foundethakis, Baker McKenzie’s Global Head of Projects and Trade & Export Finance, and Africa Steering Committee Chair

Sourced from Africa Feeds

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The African Development Bank coordinated $32.8 billion investments, with a focus on sectors such as agriculture, energy, and healthcare.

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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
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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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The Lagos-Abidjan highway project, worth $15.6 billion, was announced, highlighting the investment in infrastructure development in West Africa.

Which countries are preferred FDI destinations in Africa?

The UK invested £2.3bn in Africa from 2020-21, with a focus on projects such as the Cameroon road widening project and the Kumasi Market in Ghana.

Title:

Content: Construction News

Fri December 09 2022

UK boosts support for African construction trade

21 Jan UK Export Finance has more than trebled its investment in Africa in the last year and has introduced a new tool to encourage trade.

Support for markets in Africa has increased from approximately £600m in 2018-19 to over £2.3bn in 2020-21. Supported construction projects include the widening of the Douala Road from two to six lanes in Cameroon, supporting the trade route from the capital Yaounde to the port at Douala.

The UK held the second Africa Investment Conference yesterday (20th January) to boost economic cooperation with African nations, particularly greener, climate-friendly projects.

It has also launched the Growth Gateway - a digital tool to link African and British businesses to UK Government trade, finance and investment services and opportunities. The service is designed to provide practical online support to businesses in Africa that want to export to and invest in the UK, and businesses in the UK that want to export to and invest in Africa, backed up by a team of trade and investment specialists.

Secretary of state for international trade, Anne-Marie Trevelyan, hosted the one-day virtual event, which aimed to unlock millions of pounds of new investment, especially in clean energy industries in both the UK and across Africa.

Trevelyan said: “Two years on from the inaugural UK-Africa Investment Summit, the UK’s ambition to be Africa’s investment partner of choice has never been stronger.

“The continent has huge economic potential and our continued partnership will help businesses capitalise on investment opportunities, supporting high value jobs and boost enterprise in every part of the UK.

“This year’s conference focuses on the importance of resilient, sustainable investment to support Africa as it pivots towards a more environmentally-friendly growth trajectory, and I look forward to working with leaders from the continent as they continue on this path to a greener future.”

Minister for investment Gerry Grimstone said: “At the first UK-Africa Investment Summit, the Prime Minister stated his intention to make the UK Africa’s investment partner of choice.

“This year's conference is a key part of that legacy, bringing our business communities together to make the case for a closer investment partnership with a renewed focus on sustainability and clean growth.”

Minister for Africa Vicky Ford said: “The UK is deepening our economic ties with countries across Africa. This conference is a fantastic opportunity to bring British and African businesses together to unlock millions of pounds of new investment, especially in clean energy industries in both the UK and across Africa.

There is so much more that the UK and African countries can do together. Growth Gateway will m“ake it easier than ever for African and British businesses to access the support they need to boost two-way trade and investment.”

Last year’s virtual conference was attended by over 2,800 delegates from over 40 African countries and across the UK.

New projects in Africa supported by UKEF in 2021 included:

  • Over £120m worth of support to expand and modernise Ghana’s Kumasi Market, the largest market in West Africa visited by 800,000 people per day;
  • Over £40m in support enabled Gloucestershire-based Mabey Bridge to secure a contract to build and export 87 emergency bridges in Ghana for areas impacted by flooding;
  • UKEF support enabled Leicestershire based construction equipment supplier Quarry Manufacturing & Supplies to secure a deal worth £1.5m to support road construction in North Tema, Southern Ghana;
  • UKEF support also enabled Northern Irish SME Tesab Engineering to win a deal worth £1m to supply manufacturing and industrial equipment to support construction projects in Ghana;
  • £236m of support for the construction of six new hospitals across Cote D'Ivoire, UKEF’s largest ever loan in francophone Africa;
  • support worth £105m for the rehabilitation and reinforcement of two existing roads in Cote D'Ivoire, and the construction of four bridges to improve trade links with neighbouring countries Ghana, Guinea, Liberia and Burkina Faso;
  • UKEF support in the Ivory Coast enabled Dints International to win a contract worth €10m to supply the equipment needed for the construction of five high priority road networks in the Côte d'Ivoire;
  • In Egypt,  £1.2bn worth of support for the construction of two electric monorails supporting sustainable transport in Cairo, the largest amount of financing UKEF has provided on an overseas infrastructure project;
  • In Cameroon, £115m-worth of support will improve trade links by widening the Douala Road from two to six lanes. The project will support the crucial trade route from the port at Douala, to the capital Yaoundé as well as to landlocked neighbours Chad and the Central African Republic;
  • Northern Irish manufacturing company CDE Global won a multi-million-pound contract to expand production capacities at a sand wet processing quarry in Oueslatia, Central Tunisia with UKEF support.

Got a story? Email news@theconstructionindex.co.uk

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The UAE seeks investment with African countries, with a focus on sectors such as agriculture, minerals, and renewable energy, and has discussed trade with 21 African COMESA member countries.

Title:

Content: 00: 00
Expo 2020 Dubai Today
UAE seeks to boost investment flow with African countries at Expo 2020
His Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, held a series of meetings with ministers, officials and businessmen from African countries to discuss ways to stimulate trade and investment flows between the UAE and the continent.
During the meetings, Dr. Al Zeyoudi reviewed the economic opportunities and potential of the UAE-Africa partnership in sectors such as renewable energy, agriculture, minerals and logistics.
During the meetings, Dr. Al Zeyoudi briefed the ministers on the developments in the UAE ’ s economic environment during the past phase, including the 50 projects, new economic legislations and qualitative initiatives launched by the UAE to shift to a new economic model based on knowledge and characterized by flexibility, competitiveness and sustainability.
In his meeting with Dr. Chilichi Kabuibwe, Secretary General of the Common Market for Eastern and Southern Africa (COMESA), Al-Zeyoudi pointed to opportunities to increase the current volume of trade exchange between the UAE and the 21 African member countries of COMESA through greater cooperation in areas such as logistics and advanced technology.
In his meeting with H.E. Ntabazi Harriet, Minister of State for Trade of the Republic of Uganda, Thani Al Zeyoudi focused on investment opportunities in agriculture, minerals and retail sectors, and discussed the possibility of investing in irrigation systems and agricultural technology that can enhance the production of key crops such as coffee, cocoa, tea, cotton and flowers.
In a related context, the renewable energy sector, specifically green hydrogen, was the main focus of the discussions that took place during her meeting with Her Excellency Naha Bint Hamdi Ould Meknes, Minister of Trade, Industry, Handicrafts and Tourism of Mauritania, and Her Excellency Lucia Ibombo, Minister of Manufacturing and Trade of Namibia. for production.
H.E. Al Zeyoudi also held constructive talks with H.E. Sikai Nzinza, Minister of Industry and Trade of Zimbabwe; H.E. Carlos Alberto Fortis Mesquita, Minister of Industry and Trade of Mozambique; H.E. Maween Diggs, Minister of Trade and Industry of Liberia; H.E. Thabiso Paul, Minister of Trade and Industry of Lesotho; H.E. Edward Henga Sande, Minister of Trade and Industry of Sierra Leone; H.E. Ndir Nigel Hahel Mead Hassan, Minister of Finance, Economic Planning and Trade of Seychelles, David Osiani, Secretary General of the Ministry of Industrialization, Trade and Enterprise Development of Kenya, and Admaso Tadesse, President of the Trade and Development Bank of Kenya.
H.E. Dr. Thani Al Zeyoudi stressed that Africa is one of the most attractive markets in the world for foreign direct investment, as it enjoys huge investment opportunities in vital and strategic sectors for the UAE such as renewable energy, agriculture and logistics.
He added: “The UAE seeks to strengthen economic, trade and investment cooperation with the African continent, especially as there are common visions between the two sides to achieve sustainable development through future-oriented projects such as green hydrogen, renewable energy and the deployment of agricultural technology solutions, which was highlighted during joint meetings with ministers and senior officials. ”
Al Zeyoudi said: “The UAE continues to implement its ambitious plans to establish itself as a key global gateway for regional and global trade and investment flows. The UAE also provides opportunities for African exporters to access new markets, thanks to its advanced infrastructure linking the country through ports and airports to more than 400 cities around the world, as well as the legislative and regulatory environment that stimulates business and investments. ”
Al-Zeyoudi expressed his aspiration to continue meetings and discussions with ministers and senior officials from African countries to bring trade and investment relations between the UAE and African countries to new heights of growth and prosperity.
His Excellency Thani Al Zeyoudi ’ s series of meetings with ministers and senior officials from Africa are part of the UAE ’ s efforts to expand trade relations with the world, as part of the UAE ’ s ambitious strategy for the next 50 years to build a more dynamic and competitive knowledge-based economy.
Talks have been announced in recent weeks to reach a comprehensive economic partnership agreement between the UAE and Indonesia and India, and a joint statement of intent between the UAE and South Korea on a comprehensive economic partnership agreement between the two countries was announced on Sunday.
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China has been a significant investor in Africa, with $23 billion in financing for African infrastructure projects, and has provided $300 billion worth of African imports from 2021-2024.

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Content: Having spent the last five weeks in East Africa after a long hiatus, I sensed that Kenyans are more confident than at any time since achieving independence in 1963 of their ability to attract reliable partners as the country moves ahead in its quest for long-term economic growth. In this connection, the development of infrastructure has been a top priority for successive Kenyan governments.

Among Kenya’s potential international development partners are its traditional ones – the United Kingdom, the European Union, and the United States – and/or the newcomers – BRICS members Brazil, China, India, Russia and South Africa, among others.

In Nairobi and Mombasa, a sense of strategic autonomy is palpable.

If any of Kenya’s traditional development partners were to offer Nairobi a deal that is economically uncompetitive, vulnerable to extraterritorial sanctions or unacceptable for ideological reasons, or because it would offend the cultural sensibilities of the people, then Kenya would likely get up from the negotiating table and go elsewhere. It has options.

Across Africa, the picture is much the same.

What’s more, more and more African leaders recognize the predatory, velociraptor-like nature of neoliberal economic theory, which functions as a highly sophisticated wealth transfer mechanism disguised as the false god of perpetual progress and prosperity for all.

Africa’s new strategic autonomy is evidenced not only by the growing number of projects funded by non-Western sources but by increasing calls for more of the same across the continent.

Africans’ emerging ability to pick and choose their development partners is driving some Western leaders bonkers. Witness this remark uttered this month in Nigeria by UK Foreign Secretary James Cleverly: “We are living through an era when the tectonic plates of world politics are shifting decisively. And a battle of ideas is taking place once again.  This time, its focus is on the nature and the future of the international order.”

These words are no mere “talking points.” They come from the gut and evince an undertone of something like panic.

Clean, comfortable and on time

These thoughts about Africa’s emerging strategic autonomy raced through my head as Kenya’s crack, Chinese-built Standard Gauge Railway sent me hurtling from Mombasa, East Africa’s largest port, to the bustling capital Nairobi. Coach class, with ingratiating, uniformed waiters beckoning from their food-laden trollies, surpassed Amtrak’s equivalent from Washington to New York.

The train was clean, comfortable, air-conditioned and on time.

In Nairobi, I spoke at length with several highly accomplished civil engineers with decades of professional experience in Kenya about the Nairobi-Mombasa express. They unequivocally stated that the China Road and Bridge Corporation, the principal Chinese contractor, had done a “very good job” from an engineering, planning, design, and construction perspective.

For its part, the Wilson Center recently noted: “The [Kenyan Standard Gauge Railway] has had some important successes. Trains run faster than the former [British-built] railway or road traffic, and its passenger services are popular. The amount of freight carried by the SGR has risen significantly since commercial operations began, and it has helped to decongest port operations, speed freight transportation, and enhance cargo security.”

While there have been concerns about the railway’s cost-effectiveness, it appears to be on the verge of profitability. According to Dhahabu Kenya, as of year-end 2022, its revenues increased 6.4% to 15.3 billion Kenyan shillings (US$116.4 million), which compares to costs of “about 18 billion shillings ($136.98 million) to operate the passenger and cargo trains.”

If accurate, the SGR has almost broken even, which is remarkable, as many mega-projects across the globe – according to the Cato Institute (“Megaprojects: Over Budget, Over Times, Over and Over”) – are money-losing propositions.

Caesar Mwangi, the dean of Strathmore University Business School in Nairobi, told me: “if London, Paris or Brussels wants to compete successfully against China, or any of the BRICS, in Africa, then Western governments must get serious about public-private partnerships.

“Western governments need to tone down their claims of exceptionality on technical matters, stop blaming others for shoddy work when it’s not, put forth reasonable proposals, and gin up money on acceptable terms with realistic timetables. Otherwise, China, Turkey and India will continue to take the lion’s share of projects.”

This helps explain why The Taipei Times, citing the Center for Global Development’s 2022 study, reported that “China’s development banks provided $23 billion in financing for infrastructure projects in sub-Saharan Africa from 2007 to 2020, more than double the amount lent by such banks in the US, Germany, Japan and France combined.”

Lamentably, the West has failed to advance its strategic interests in Africa because most African countries have had enough of Western specialists and academics spouting off about “best practices,” “human rights,” “future prosperity” and “equity.”

Some African leaders may buy into the West’s ideological agenda out of conviction or because they are simply corrupt, but the majority will not sign up for overpriced projects with unrealistic timelines and unacceptable conditions no matter how slick the PR presentation.

Deeper problem afflicts Western interests in Africa

Over the past 20 years, neoliberal economic theory – the belief that financial markets are (and should be) the driving force in socio-economic decision-making, and that they will, at some undisclosed point in the future, bring about equitable development – has devastated the poor and much of the middle class across the globe.

Neoliberalism has helped undermine societal cohesion and pitted one community against another, wiping out traditions, degrading the environment, and ruining cultural identities in the process.

Mwangi emphasizes that “neoliberalism as an economic model has not served the common good of societies across Africa. Rather, it has delivered greater inequality and social insecurity. Its claim of reducing poverty is not supported by the evidence.”

In the case of Kenya, The Daily Nation reported in June that “nationally, about 30% of [Kenyans] are unable to meet their food needs, with more rural than urban dwellers living in hunger.” In 2016, 16.8 million Kenyans were living in a state of poverty versus 19.2 million in 2022, an increase of more than 14%.

Other African states have experienced a similar deterioration of living standards over the same period, and the blame cannot be pinned strictly on Covid.

The United States also has geopolitical headaches of its own making.

Many of the businessmen I met in East Africa (though certainly not all) expressed deep frustration with US diplomatic outreach over the past several years. One described it as “little more than a sales pitch delivered by a failing commercial enterprise selling third-rate products and overpriced ideas that smack of a disguised form of neocolonialism.”

What’s more, Africans increasingly understand that just as the June 2021 US-led “Build Back Better World” (B3W) infrastructure initiative turned out to be a flop, so, in all likelihood, will the Partnership for Global Infrastructure and Investment as codified in the G7 Hiroshima Leaders’ Communiqué (May 20, 2023). The failure of the domestic version of B3W in the United States is well known in Africa.

For this and other reasons, the West’s claim to be Africa’s development partner of choice has worn thin. Across Africa, leaders are increasingly holding Britain and France at arm’s length. Pretoria, Algiers and Bamako, for example, are in no mood to be lectured by their former colonial overlords.

The countries of the Sahel have all but booted the French out.

At the 15th BRICS Summit in South Africa (August 22-24), heads of state are discussing new membership criteria, new funding mechanisms, new infrastructure projects and a new currency – as the West looks on in horror as multipolarity gains momentum.

More than 20 countries have formally applied to join BRICS, including Argentina, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and United Arab Emirates. Many more have expressed an interest.

The Nairobi-Mombasa express and other infrastructure projects across the continent show that Africans have options. They are no longer dependent on their former colonial patrons for technical or financial support because they are increasingly able to look elsewhere.

If the West wants to remain relevant in Africa, it must compete for African business and find new ways to peddle its influence in a world growing rapidly more multipolar. It must deal with Africans as equals, ditch any lingering colonial attitudes of superiority, and delink programming for economic development from dogmas and doctrines of an ideological nature.

The countries assembling at the 15th BRICS Summit in Africa this month are not bluffing about gaining strategic autonomy in international relations. When in East Africa, I recommend taking the Nairobi-Mombasa express to understand that Kenya’s self-confidence in development matters is real.

Javier M Piedra is a financial consultant, specialist in international development and former deputy assistant administrator for South and Central Asia at USAID.

The China-Africa Investment Conference was held in Nairobi, Kenya, on May 9, 2024, with 10 cooperation projects signed worth $295 million US dollars.

Title:

Content: People 's Network > > International
China-Africa Investment and Trade Promotion Conference and Kenya International Investment Conference Held
May 10, 2024 15: 57 | Source: People's Network - International Channel
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Conference site.
Photo by Huang Weixin, People's Daily Online
People's Network Nairobi, May 9 (Reporter Huang Weixin) On the morning of May 9, local time, the China-Africa Investment and Trade Promotion Cooperation Exchange Meeting and the Kenya International Investment Conference were held in Nairobi, Kenya.
The event, co-sponsored by the Secretariat of the Organizing Committee of the China-Africa Economic and Trade Fair and the Kenyan Ministry of Trade, Investment and Industry, is the first stop of a series of activities for the China-Africa Economic and Trade Fair to enter Africa.
Hunan Province Vice Governor Cao Zhiqiang said that Hunan is taking the China-Africa Economic and Trade Expo and the China-Africa Economic and Trade Cooperation Pilot Zone as the two national platforms for China-Africa economic and trade cooperation as the starting point. To contribute more to jointly building a high-level community with a shared future for China and Africa.
Rebecca Miano, Minister of Trade, Investment and Industry of Kenya, said that the China-Africa Economic and Trade Expo is an important platform for promoting breakthrough progress in China-Africa economic and trade cooperation, and is eager to witness innovative products and leading services that can shape the future of the industry at the China-Africa Economic and Trade Expo, helping China and Africa to move towards a more competitive and sustainable future.
Through the Expo platform, industry leaders, investors and potential collaborators can establish contacts and exchange cooperation, paving the way for mutually beneficial cooperation to promote economic growth.
At the event site, 10 cooperation projects such as the second phase of the Kenya Kenya-China Economic and Trade Incubation Park, the Kenya Agricultural Import Public Overseas Warehouse Project, and the Tanzania Sunflower Oil Processing Plant Project were signed, with a signing amount of 295 million US dollars.
Representatives from all walks of life in Central Africa and international organizations including the United Nations Industrial Development Organization and the African Union Commission attended the meeting.
(Editor: Yan Meng, Yang Mu)
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Which African countries are driving the venture capital ecosystem?

China-Africa trade volume reached $282 billion in 2022, with China being Africa's largest trading partner for 14 years, and 53 African countries participating in the China-Africa Economic and Trade Expo.

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Content: People 's Daily Online > > Economy and Technology
China-Africa economic and trade cooperation giant ship set sail again
Our reporter Zhao Jiawei, our correspondent Jia Ke
July 3, 2023 08: 57 | Source: Guangming Daily
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Original title: Promoting China-Africa economic and trade cooperation giant ship set sail again
On July 2, the third China-Africa Economic and Trade Expo (hereinafter referred to as the "China-Africa Economic and Trade Expo") officially came to an end. Over the past four days, 53 African countries, 12 international organizations, 30 provinces, autonomous regions and municipalities, more than 1,700 enterprises, business associations and financial institutions from China and Africa have participated in the exhibition.
A total of 120 projects have been signed by the parties, with a total value of 10.3 billion US dollars, demonstrating the strong vitality and resilience of China-Africa economic and trade cooperation.
Convergence of development efforts
On June 30, at the high-end seminar on China-Africa economic and trade cooperation, the Institute of International Trade and Economic Cooperation of the Ministry of Commerce released the "Report on China-Africa Economic and Trade Relations 2023".
According to the report, China has maintained its position as Africa's largest trading partner for 14 consecutive years. In 2022, China-Africa trade volume further increased to 282 billion US dollars, a record high.
China's direct investment in Africa has exceeded 10 billion US dollars in the past 20 years.
In particular, infrastructure cooperation between China and Africa has greatly promoted poverty reduction in our country, "said Dr. Alkabe Okabe, a former special adviser to the Ethiopian prime minister.
“Chinese investors have a lot of courage and perseverance.
We have a very difficult project conditions, foreign enterprises can not avoid, but Chinese enterprises are willing to come to invest and develop, and successfully completed the project. ” Niger Minister of Commerce Ahada Akachi shared the story of Chinese investment in the local area in the keynote speech.
In order to expand the breadth and depth of China-Africa cooperation, the Changsha initiative of "innovation and exploration of in-depth cooperation" in China-Africa economic and trade was also released during the expo, which advocated building consensus on development, strengthening pragmatic economic and trade cooperation, and sharing friendly partnership.
China in the Non-Corporate Social Responsibility Alliance issued the "China in Non-Corporate Social Responsibility Joint Action Initiative", calling on China to actively carry out its mission and responsibilities in non-enterprises, strive to integrate into African development, and draw a blueprint for sustainable development of Africa with the African people and the international parties.
"What China has done is not to teach people to fish, but to teach people to fish." Malawi is one of the guest countries of this exposition. Malawi President Chakvila said that the China-Africa Economic and Trade Expo, as an important platform for in-depth cooperation between China and Africa, will deepen the links between people, industry and industry, and between countries.
Expanding the circle of young friends in Central Africa
“Is it possible to build a platform to bring together the Chinese people in Africa? ”
With such an idea, we established a foreign home platform and opened the road of entrepreneurship. "On June 30, at the China-Africa Youth Innovation and Entrepreneurship Forum, Lei Ting, founder of Hunan Foreign Home Information Technology Co., Ltd., described his entrepreneurial feelings.
At the forum, young people from China and Africa gathered to tell entrepreneurial stories and share innovative experiences.
After countless thoughts, Wang Shuangyin, a Chinese boy, created the drama “Hujiambo, Africa ” to show the support of the Chinese people in life, and won the most characteristic award of the“ Belt and Road ” literary and creative competition. In order to solve the transportation problem of medical supplies in sub-Saharan Africa, Zambian youth Krivet Meba created a digital platform to send basic medical supplies …
There are many stories of China-Africa youth entrepreneurship like this, and the “China-Africa Youth Innovation and Entrepreneurship Story Collection ” released at the forum will record their stories into a book and compose a chapter, so that the story of China-Africa youth moving forward side by side and innovation and entrepreneurship will be known by more people.
“The China-Africa Economic and Trade Expo is a good platform for exchanges, and the Youth Innovation and Entrepreneurship Forum is a bridge for exchanges between China-Africa youth. ” Mendu, founder of the China-Africa Youth Federation, said that in the future, the youth federation will play its advantages to promote more exchanges between China-Africa youth and let more African youth leaders know about China.
Achieving development outcomes for all
On June 29, the China-Africa Economic and Trade Fair held the first China-Africa Women's Forum, attended by more than 80 foreign guests from 23 African countries.
The forum adopted the "China-Africa Women's Forum Joint Initiative" on the spot, calling for closer cooperation along the fundamental direction of building a community with a shared future for China and Africa.
“Empowered by mycelium technology, women become an important part of productivity.
The progress of each rural woman will lead to the improvement and progress of the family and ultimately promote the progress of the rural areas, "said Lin Dongmei, deputy director of the National Fungus Engineering Technology Research Center, who is a participant and witness of friendly exchanges and mutually beneficial cooperation between China and Africa.
Through the implementation of the Chinese government's foreign aid project and the China-United Nations Peace and Development Fund fungus project, the National Fungus Center has pioneered the model of "10 square meters mushroom farm" in South Africa, where all women can participate and benefit.
"After they earn money from studying mushrooms, they can send their children to school, open a grocery store in the village, and buy a car to hire people to transport them, changing the fate of themselves and their families."
“Today ’ s forum is a rare opportunity for us to exchange experiences and bring new hope to the poverty reduction plans of thousands of African people living in misery, ” said Joana Thomas, general secretary of the Women ’ s Liberation Movement of Angola (MPLA).
(Edited by: Yang Xi, Lu Qian)
Public Number ： People 's Network Finance
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The International Finance Corporation aims to mobilise $10bn annual investment in Africa by 2030, with a focus on sectors such as infrastructure and healthcare.

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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.

The African Continental Free Trade Area is expected to be operational by 2030, with intra-African trade currently accounting for 15% of total trade, and the AfDB aims to boost intra-African trade through infrastructure investment.

Foreign direct investment in Africa declined by 16% in 2020 to $40 billion, but is projected to grow by 5% in 2021, with China slowing down its investments in Africa.

The US proposed the "Build Back Better World" initiative for Africa, with the G7 increasing support to Africa and the Indo Pacific, and Chinese financiers committed $153 billion to Africa between 2000 and 2019.

Which countries are actively investing in Africa besides China?

China has diplomatic relations with 53 African countries, and has established 61 Confucius Institutes in Africa, with Chinese businesses planning to invest $10 billion in Africa over three years.

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Chinese Foreign Minister Wang Yi.

Fifth Estate

Chinese FM Wang Yi’s visit cements Sino-Africa relations

-Wang Yi will be in Kenya, Eritrea and Comoros from Jan 4-7.
-It’s an annual tradition for Chinese FM to visit Africa at the start of the year.
-The visit cements China-Africa relations.

Following in the tradition of Chinese foreign ministers starting every new year with a visit to Africa, State Councilor and Foreign Minister Wang Yi will visit Eritrea, Kenya and the Comoros from January 4 to 7, 2022 upon invitation by the respective hosts. This will be the 32nd annual visit to the continent.

Making the announcement on December 2, 2021 Zhao Lijian, spokesperson for the Chinese Foreign Ministry noted that this customary visit demonstrates the great importance China attaches to its traditional friendship with Africa and the development of China-Africa relations.

For Sino-Africa experts and watchers alike, this is one of the most important annual highlights and sets the tone of how the partners will react to geopolitical issues going forward. It is also a barometer of how the two have reacted to external pressure bent on putting a spanner in their socio-economic and even political works.

That China and Africa have formed a close bond in a long running relationship spanning more than five decades is not in doubt. Currently, China has established diplomatic relations with 53 African countries, in addition to 160 pairings with sister provinces or cities between the two partners. This shows the depth of cooperation and closeness that has progressively developed over time.

China has established 61 Confucius Institutes and 48 Confucius Classrooms in Africa. Language is a crucial channel in creating mutual understanding, which informs the establishment of these basic language and cultural centers. It is also added value for Africans who, with the addition of Mandarin to their lingua franca and foreign second languages, are becoming truly global citizens through multilingualism. But it is expected that with Sino-Africa relations becoming widespread in Africa, Mandarin will replace most foreign languages in the continent in a span of less than 50 years.

China’s COVID-19 assistance to Africa is well documented. Recently, President Xi Jinping announced that China will provide another one billion doses of COVID vaccines to Africa, including 600 million doses as a donation, to help the countries achieve the goal set by the African Union of vaccinating 60 percent of the African population by 2022. Africa will also benefit immensely from China’s COVID-19 assistance to developing countries bilaterally, and even through multilateral channels like the COVAX Facility.

During the eighth ministerial conference of the Forum for China-Africa Cooperation (FOCAC) held in Dakar, Senegal in November, 2021 China pledged to permit $300 billion worth ofAfrican imports in the next three years. It also promised $10 billion in trade finance to support African exports. Chinese businesses will also invest at least $10 billion in Africa over the next three years, and offer $10 billion worth of credit facilities to African financial institutions.

In a great gesture of genuine friendship, China said it is ready to channel $10 billion to African countries from China’s share of the International Monetary Fund’s new allocation of special drawing rights. To cap it all on this front, Chinese companies in Africa plan to create not less than 800,000 local jobs.

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The year 2021 marked the 65th anniversary of the start of diplomatic relations between China and African countries. Almost by design, Agenda 2063’s flagship projects reflect FOCAC’s pillars. These are wide ranging sectors in the areas of infrastructure, science and technology, education as well as arts and culture. Specifically, Sino-Africa cooperation has experienced either the conception, emergence or realization of some major initiatives, some of these together with other African partners.

These include the ten major cooperation programs envisioned by President Xi during the FOCAC Johannesburg Summit in December 2015 – agricultural modernization, infrastructure, finance, green development, trade and investment facilitation, poverty reduction, public health, cultural and people-to-people exchanges, and peace and security.

Over the past two decades, Chinese overseas Foreign Direct Investment to Africa has grown, from $75 million in 2003 to $ 5.4 billion in 2018. Through the Belt and Road Initiative (BRI), China has

also expanded its sphere of influence in Africa, and specifically through investment in infrastructure development such as industrial parks, railway, ports, and roads among others.

During the launch of a report in Nairobi titled “Shared Prosperity: Tracking the Belt and Road Initiative in Kenya, 2018-2021” held in November, President and Chief Executive of the Africa Policy Institute, Prof Peter Kagwanja, observed that the centuries-old reservoir of collective wisdom and philosophy carries the values of cooperation and solidarity between China and Africa as two old civilizations with a long history of friendly interactions and mutual cooperation.

Today, FOCAC and BRI form the twin-engines of the SinoAfrica architecture now propelling Africa’s development. China has committed at least $200 billion to lift Africa from poverty and underdevelopment. After BRI was launched, China has extended a $120 billion dollar lifeline, $60 billion in 2015 and another $60 billion in 2018. This is the largest bailout in human history, and the first ever by a developing nation like China,” observed Prof Kagwanja.

As noted during FOCAC, China has become an indispensable partner in Africa’s development, and the forum has now become the most important accelerator for Sino-Africa cooperation. Africa supports and will actively participate in the Global Development Initiative and the Initiative on Partnership for Africa’s Development, both of which are Chinese led initiatives.Further, Africa expects greater support from China for herindustrialisation and fight against the pandemic. Africa stands ready to contribute to high-quality Belt and Road cooperation for people’s well-being and common prosperity.

[Stephen Ndegwa is a Nairobi-based communication expert, lecturer-scholar at the United States International University-Africa, author and international affairs columnist]

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China pledged to provide one billion doses of COVID vaccines to Africa, and Chinese companies in Africa plan to create 800,000 local jobs, with China committing $200 billion to lift Africa from poverty.

What is the impact of Chinese companies on jobs in Africa?

Africa's economy grew 5 percent annually over the past decade.

Title:

Content: Optimists talk about Africa as the next economic frontier

By 54m ago

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BY DELIA DE VILLIERS

For years Africa has been shrouded in controversy when it comes to its future potential. The optimists talk about Africa as the next economic frontier, while the sceptics point to a low growth rate, poverty and conflict as key challenges standing in the way of notable development.

Yet, the continent has grown its economy by around 5 percent a year over the past decade, is as urbanised as China and has as many cities as Europe with a population of more than one million, according to Future Agenda.

The World Bank reports that sub-Saharan Africa is “home to more than 1 billion people, half of whom will be under 25 years old by 2050”, suggesting that the workforce of the future is based here. They go on to say that Africa is a “diverse continent offering human and natural resources that have the potential to yield inclusive growth and eradicate poverty”.

While potential is not a measure of performance, what is productive is to consider the motivations of businesses opting either to enter the African market or expand operations on the continent. And that’s notwithstanding the challenges, or as Shaw Mabuto, partner at private equity firm Spear Capital, puts it: “While there are undoubtedly risks in Africa, they are well known and understood. Investors can mitigate for them.”

Spear Capital is particularly excited about the opportunities in the ESG (environmental, social, governance) space in Africa. “There are many businesses that have been able to thrive in spite of the prevailing environment and lack of government support. With the right backing, companies across the continent can grow successfully while at the same time making the world a better place and providing returns to their investors,” Mabuto says.

Google’s recent announcement of plans to invest $1 billion (R15.6bn) to support digital transformation in Africa is another very positive indicator of the potential of the continent. The investment, which was announced in October 2021, will be used to enable affordable internet access and building helpful products, for investments in entrepreneurship and technology, as well as to empower businesses as they continue or embark on their digital transformation.

This positive sentiment about Africa’s potential is echoed by a number of businesses who have chosen to expand their operations on the continent.

Picking your next market is key

When SweepSouth decided to scale their business across the African continent in 2020, they chose Kenya as the first territory to launch their on-demand home services model outside of South Africa’s borders. Three months ago they started operations in Nigeria, and plans are now afoot to expand further into Africa.

“There are so many factors that go into choosing a new market, so we decided to look at countries where people experience the same sort of home-care needs South Africans required when SweepSouth was started,” says Aisha Pandor, SweepSouth chief executive.

Kenya and Nigeria were obvious choices, representing big-market regions with a high growth opportunity, ever-increasing internet penetration and digital literacy, and the potential for positive impact on employment, education and economic growth via smart, scalable technology solutions.

“Kenya appealed to us because it felt like an in-between in terms of culture, market segment and dynamics, and also smartphone and internet penetration when compared with West Africa. And Nigeria is a really exciting new venture that we hope will serve as a base for further expansion into the West African region,” says Pandor.

West Africa, too, is increasingly recognised as an area of economic and growth interest for businesses looking to get a foothold on the continent.

Integrated PR and marketing agency Irvine Partners recently opened an office in Ghana in response to an increasing number of their global clients needing support there. The agency already has wholly owned offices in South Africa, Kenya and Nigeria, and has realised the potential of this West African country.

“Most of our clients’ interest in the region stems from Ghana’s position as a tech hub within sub-Saharan Africa and its growing financial services industry, but we’re also seeing many other industries looking to invest in and expand into the country. Strategically, it makes a lot of sense for us to have a presence in the country and we’re optimistic about its potential,” says managing director Hayley van der Woude.

Beyond the obvious

Importantly, the interest in Africa extends beyond the traditionally popular economic areas such as Lagos, Nairobi and Accra, with Mauritius serving as a prime example of potential beyond the obvious. It is currently the top-ranked economy in sub-Saharan Africa, according to the World Bank’s Ease of Doing Index and is recognised for offering a sound political and economic environment that strongly encourages investment thanks to a sophisticated banking system, a favourable tax regime and low inflation.

These are among the main reasons.

The Business Exchange (TBE), a South African-launched serviced office offering, not only expanded operations to Mauritius but also designed an investment opportunity for others with their sectional title shared office investment that offers a safe and affordable way to get into this bustling market.

“Mauritius, in our view, is fast becoming one of the hottest investment hubs on the continent. Major international brands, including Samsung, Broll, Expedia and NBA (North America’s National Basketball Association), are based at our serviced office space there, which speaks to the interest in the location and offers an indication of its dynamism as a business destination,” says David Seinker, the founder and chief executive of TBE.

Embracing innovation

Lastly, but certainly very significantly, when it comes to businesses where customer-centricity is key, such as banking and telecoms, African players compete more effectively than their international counterparts, according to a finding in the Boston Consulting Group’s digital maturity index.

“It’s also hardly surprising that these are two sectors where Africa has led the world when it comes to technology-led innovation,” says Ngadi Job Goshi, the general manager at Liferay Africa. “Ultimately, while Africa may be less digitally mature than other markets, there can be no doubt that businesses on the continent are unafraid to embrace technology and innovation. And, in the customer-centric ways in which they’ve done so, despite facing adversity and strong headwinds, there are lessons for the rest of the world in the tenacity and ingenuity birthed and nurtured in the African soil.”

Delia de Villiers is the senior account manager, Irvine Partners.

BUSINESS REPORT

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Sub-Saharan Africa is home to over 1 billion people, half of whom will be under 25 by 2050.

Google plans to invest $1 billion to support digital transformation in Africa.

What trends are emerging for African startups in 2022?

Which countries are actively investing in Africa besides China?

Spear Capital is excited about opportunities in the ESG space in Africa.

What trends are emerging for African startups in 2022?

Kenya and Nigeria are big-market regions with high growth opportunities.

Ghana is a tech hub within sub-Saharan Africa with a growing financial services industry.

Which countries are preferred FDI destinations in Africa?

Which sectors received the most foreign investment?

Mauritius is the top-ranked economy in sub-Saharan Africa for ease of doing business.

Africa has led the world in technology-led innovation in banking and telecoms.

The continent has as many cities as Europe with a population of over one million.

West Africa is increasingly recognized as an area of economic and growth interest.

What trends are emerging for African startups in 2022?

Talent shortages affect 78% of sectors as of 2022, with in-demand talent including IT and administration jobs.

Title:

Content: Organisations are in business to make money, but people remain central to success and ensuring that the organisation has what it takes to thrive, writes Phumzile Hlatshwayo, executive: human capital at Altron Systems Integration.

Organisations want results. Stakeholders, investors and leadership want results. The entire goal of a business is to achieve solid financial results and growth. However, this requires that the people within the business are engaged and motivated. They are the reason why an organisation thrives.

However, economic uncertainty, political complexity, social upheaval and overall global uncertainty are currently having a serious impact on employee wellbeing and engagement.

What’s needed now are leaders who can take people through these storms, people who can motivate, inspire and encourage employees so they remain steady while the world, and the business, transform.

It is also about creating spaces and opportunities for people so they can grow their skills and confidence. Organisations need to invest in training programmes and skills development courses that allow people to gain critical skills that allow them to plug the talent holes that are affecting their growth and capabilities.

A recent survey by the Manpower Group found that there are significant talent shortages across most sectors – increasing from 10% in 2012 to 78% in 2022.

The most in-demand talent includes IT, operations and logistics, sales and marketing, manufacturing and production, and administration and office support.

The upshot is that private companies need to upskill South Africans to build a talented workforce and create even more job opportunities as this commitment tackles two of the most pressing challenges facing the country right now – unemployment and skills development.

One approach is to focus on providing junior graduates with the opportunity to work within an organisation. It allows for them to grow real-life skills within the business while investing into people who will then understand the business on a granular level.

There is an opportunity to partner with SETAs, NPOs, training companies and formal education institutions. This is a war to be fought by masses, not one structure.

This is a strategic approach. Time and money are invested into building talent from the ground up which engenders loyalty and empowers the next generation. However, investment into talent shouldn’t stop there.

It should also be focused on developing managerial skills, providing managers with tools that allow them to better mentor these graduates. Managers need to know how to coach these young, fresh graduates so they grow within their roles with confidence, and this means a huge investment needs to go into their development as well.

These investments, into people across all levels of the business, not only ensure skills are disseminated throughout the business and that people are made to feel connected and engaged, but also ensure that people gain much-needed confidence. This is essential, particularly in the current market.

People who have faith in their abilities are more dynamic, engaged, committed and passionate about their work and these are precisely the kind of people that turn an organisation into a success story.

Moving ahead, companies need to focus on building graduate programmes that focus on the core principles of skills development, managerial skills, coaching, and personal confidence. These, like the one currently in place at Altron, prioritise people and show how the organisation values their contributions to the business.

There is no leadership joy that can compare to seeing talent growth and leaders that came from the Graduate or Learnership Program. And that, over making stakeholders and the finance team happy, is good business.

Private companies must upskill workers to tackle unemployment, and junior graduates need real-life skill development opportunities.

Partnerships with SETAs and NPOs can aid skills development, and investing in talent builds loyalty and empowers the next generation.

Managerial skills development is crucial for graduate growth, and graduate programmes should focus on skills and confidence.

Ghana and Nigeria are top investment destinations in Africa due to their growth potential.

Title:

Content: The countdown to Expo 2020 Dubai
Dubai Chamber to host African Business Forum at Expo 2020 Dubai
A survey conducted by the Dubai Chamber with participants in previous sessions of the World Africa Business Forum, including dignitaries, investors, trade and investment leaders and experts, revealed that agriculture is the most promising area for investment in the African continent.
During the questionnaire, the participants ’ ideas, attitudes and views on the various aspects of investment and its prospects in the continent were identified.
He concluded that cash investment is the preferred form of FDI, and that Ghana and Nigeria are the preferred destinations for investment in the African continent, due to growth potential and investment opportunities.
The results of the survey provide important data for participants in the sixth edition of the forum, which will be organized by the Dubai Chamber and Expo 2020 Dubai during the exhibition from 13 to 14 October.
This year ’ s edition of the Forum will be organized under the theme “Trade Leads the Future of Economic Transformations ”, which is characterized by radical and fundamental changes that keep pace with the current stage, and at the same time reflects the keenness of the Chamber to achieve a qualitative shift in form and content, which enhances the Forum ’ s status and leading role in publicizing the commercial opportunities available in Africa.
Dubai Chamber, the official business integration partner of Expo 2020 Dubai, will play a pivotal role in stimulating partnerships with the global business community during the six months of the event.
The Forum ’ s program consists of three sections: the Forum ’ s Insights program, the Global Africa Business Forum ’ s networking program, which specializes in bilateral business meetings between investors and businessmen and investors from both sides to discuss opportunities for cooperation and potential partnerships, and the Expert Center, which provides a fast and reliable investment information platform on African countries.
Print

Agriculture is the most promising area for investment in Africa, with cash investment being the preferred form of FDI.

Which sectors received the most foreign investment?

The Dubai Chamber hosts the African Business Forum to stimulate partnerships, and Expo 2020 Dubai features African business opportunities and investments.

Africa offers commercial opportunities for the global business community, with investment opportunities available in various African countries.

Title:

Content: The countdown to Expo 2020 Dubai
Dubai Chamber to host African Business Forum at Expo 2020 Dubai
A survey conducted by the Dubai Chamber with participants in previous sessions of the World Africa Business Forum, including dignitaries, investors, trade and investment leaders and experts, revealed that agriculture is the most promising area for investment in the African continent.
During the questionnaire, the participants ’ ideas, attitudes and views on the various aspects of investment and its prospects in the continent were identified.
He concluded that cash investment is the preferred form of FDI, and that Ghana and Nigeria are the preferred destinations for investment in the African continent, due to growth potential and investment opportunities.
The results of the survey provide important data for participants in the sixth edition of the forum, which will be organized by the Dubai Chamber and Expo 2020 Dubai during the exhibition from 13 to 14 October.
This year ’ s edition of the Forum will be organized under the theme “Trade Leads the Future of Economic Transformations ”, which is characterized by radical and fundamental changes that keep pace with the current stage, and at the same time reflects the keenness of the Chamber to achieve a qualitative shift in form and content, which enhances the Forum ’ s status and leading role in publicizing the commercial opportunities available in Africa.
Dubai Chamber, the official business integration partner of Expo 2020 Dubai, will play a pivotal role in stimulating partnerships with the global business community during the six months of the event.
The Forum ’ s program consists of three sections: the Forum ’ s Insights program, the Global Africa Business Forum ’ s networking program, which specializes in bilateral business meetings between investors and businessmen and investors from both sides to discuss opportunities for cooperation and potential partnerships, and the Expert Center, which provides a fast and reliable investment information platform on African countries.
Print

What trends are emerging for African startups in 2022?

Africa's trade growth offers business opportunities despite slow global growth, with the AfCFTA creating a $3.4 trillion borderless market.

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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Africa's population is expected to reach 1.7 billion by 2030, with 34% of African households living below the international poverty line.

Africa's untapped export potential is $21.9 billion, and Nigeria, Egypt, and South Africa are expected to be the largest consumer markets by 2030.

Africa is the fastest-growing mobile telecom market in the world, with mobile money accounts in Africa making up over 50% of the global total.

Africa's industrial production can double to $1 trillion within a decade, and the continent's urban population is expected to double by 2050.

Africa's youth unemployment rate is 60 percent, with 75 percent of the population under 35.

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Refine skills in unemployment war

Africa faces a pressing problem of youth unemployment. Steadily worsening over the years, youth unemployment on the continent stands at 60 percent. Collective action is needed to find solutions while addressing the structural causes of the problem.

Africa’s youth (aged 15-24) comprise 32 percent the working-age population and 10.6 percent of the unemployed. The face of Africa's youth is an eighteen-and-a-half-year-old female living in a rural area, with some education and literacy but not attending school. Her main challenge is finding and sustaining productive employment with a reasonable income.

There are several dimensions to the problem of youth unemployment but let's focus on two. First, there's a demographic dimension: Africa's population profile is shaped like a typical pyramid with a "youth bulge" at the base.

Almost half of Africa's population is under 25; about 75 percent is under 35. By 2050, Africa will account for 35.5 percent of all people aged 15 to 24 or about 462 million of the total 1.3 billion persons globally.

For Kenya, the broader policy questions top of mind include “How many young Kenyans are gainfully employed? How many are actively looking for work, how many are furthering skills and education for employment, how many are inactive, how many are in unpaid domestic work, and how many have given up looking for paid work?” Data research can help pinpoint answers to these questions in the form of granular models and predictions up to 2030.

While a rise in unemployment is a crucial problem, comparing employment data with population data is essential. Understanding the population trends provides further insight into employment trends within 15-35 years old.

With overall population growth, Kenya's unemployment rates over all age groups have increased from six percent in 2020 to 6.6 percent in 2021 and young people tend to be particularly affected by unemployment.

While of the 15.2 million 17 to 35-year-olds in Kenya, eight million are employed and 1.2 million are unemployed, the more concerning number, which is often overlooked, is that of the six million inactive youth.

Then there is a labour market dimension. The rate at which young people find jobs depends on how prepared the labour market is to receive them and how ready they are for the labour market.

Even with high primary school enrolment with an equal number of girls and boys starting school today, primary school completion can no longer be our goal. Experience worldwide has shown that no nation has achieved a technological and socio-political advance where less than 15 percent of its qualified young citizens have access to tertiary education.

It is not surprising that potential employers in Kenya and elsewhere say that our institutions aren't graduating people with the skills they need. But, fundamentally, the skills gap and the skill mismatch need to be addressed. The problem is Africa-wide and reflected in Kenya.

We need a plan for action to address these challenges. First, policymakers must build capable states to expand economic opportunities to deliver essential services to citizens. In other words, every Kenyan shilling spent on education, health and other essential services must deliver commensurate value.

We must focus on developing micro, small and medium enterprises as a credible springboard from which to canvas for Foreign Direct Investment. International investors follow the lead of local entrepreneurs.

In addition, policymakers must modernise the curriculum and sponsor programs to assess and re-equip youth, so they have the skills the market will be looking for tomorrow. They must also aim to expand tertiary and university education, explore public-private partnerships, and use technology to innovate and expand education beyond their walls.

While there are challenges, Kenya also has proven potential. It has a dynamic private sector and a vibrant civil society; it is making its mark on the global stage in mobile technology innovation and is vital in the service sector.

Real-time data modelling

The World Data Lab (WDL) together with Mastercard Foundation are partnering to address the youth unemployment challenge in Africa. WDL will lead the development of a pioneering real-time job growth model for young Africans.

The objective is to monitor and forecast employment trends by disaggregating labor force data into sub-groups by age, gender and sector. It will examine employment trends across a minimum of seven countries in Sub-Saharan Africa: starting with Kenya, Rwanda and then Uganda, Ethiopia, Ghana, Nigeria and Senegal.

To initiate the project, WDL will be meeting with public and private sector partners in Nairobi from 1-6 September and Kigali from 7-10 September 2022.

The purpose is to engage on broader objectives of this innovative project and to seek stakeholder views on the youth unemployment challenge in these respective countries. WDL intends to build a robust consultation process as the project evolves to ensure that the findings can be validated and disseminated.

The job growth model will serve as a standard setter for any policy intervention as it will allow for an immediate quantification of proposed policies.

It will also help in evaluating trade-offs of key policy interventions. In addition, it will enable the general public to monitor progress and discuss this critical issue of their country on the basis of credible estimates.

Kenya's unemployment rate increased from 6 to 6.6 percent in 2021, with six million Kenyan youth being inactive, not employed, or looking for work [35

Kenya's unemployment rate increased from 6 to 6.6 percent in 2021, with six million Kenyan youth being inactive, not employed, or looking for work [35

Kenya's unemployment rate increased from 6 to 6.6 percent in 2021, with six million Kenyan youth being inactive, not employed, or looking for work [35