Foreign direct investment in Africa reached $83 billion in 2021, representing 5.2% of the global total.

The COVID-19 pandemic significantly impacted foreign direct investment in Africa before the global economy recovered in 2021.

Global foreign direct investment rose 77% to $1.65 trillion in 2021.

Africa's foreign direct investment increased from 2020 to 2022, with a 53% increase in financing in the construction industry.

Egypt is the top investment destination in Africa and the Arab world, with expected foreign direct investment of $16.5 billion in 2024-2025.

South Africa received $40.9 billion in foreign direct investment in 2021, the largest in Africa.

Mozambique attracted $5.1 billion in foreign direct investment in 2021, a 68% increase.

The UK and France are Africa's largest investors, with $65 billion and $60 billion in FDI stock.

China is Africa's largest foreign investor, with $2.7 billion invested in 2019.

The African Continental Free Trade Area (AfCFTA) aims to create a single market of 1.3 billion people and $3.4 trillion GDP to attract more foreign investment.

Africa's FDI grew 11% last year, driven by special economic zones.

Google has invested $1 billion in Africa for digital transformation, with companies like SweepSouth expanding to Kenya and Nigeria.

DP World's £1.2bn investment in Senegal's deepwater port is expected to increase trade by $15bn and facilitate 18% of Senegal's GDP by 2035.

China accounts for 31% of Africa's infrastructure projects, with $50 million in contracts and $300 billion invested in the continent.

The US will invest $33 billion in Africa from 2022-2025, including $14 billion from companies like Marriott and General Electric.

India, Turkey, Belgium, China, and Qatar are expected to invest in Egypt, with India's share being $13 billion.

British International Investment will invest $60 billion in Africa over five years.

African fintech revenues are expected to reach $30bn by 2025, with over 5,200 tech start-ups already present in 2021.

Foreign direct investment in Africa reached $83 billion in 2021, representing 5.2% of the global total.

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Content: FDI flows to North Africa down 5% in 2021
Foreign direct investment to North Africa fell 5 percent to $9.3 billion for the whole of 2021, according to a report on “Investing in the World ” released by the United Nations Conference on Trade and Development (UNCTAD) on June 9, 2022.
These investments, towards Tunisia, improved slightly from $652 million in 2020 to $660 million in 2021.
The same investment to Morocco increased by 52 percent to 2.2 billion dollars in 2021, compared with a 12 percent drop to 1.5 billion dollars in Egypt.
Despite the decline in these investments in Egypt, it remains the second country to benefit from the inflow of foreign direct investment in Africa.
According to the same report, the flow of foreign direct investment in Africa reached a record level of $83 billion for the whole of 2021, more than double the investment achieved for the whole of 2020.
Despite this significant growth, the flow of investment to Africa in 2021 represented only 5.2 percent of the global total, compared to 4.1 percent in 2020.
Most African countries saw a slight increase in foreign direct investment (FDI) in 2021.
These investments developed in South, East and West Africa, while they maintained their previous levels in Central Africa, while declining in North Africa.
Europeans remain the most important investors in Africa, led by investors from the United Kingdom ($65 billion) and France ($60 billion).
Increased investments in renewable energy
Despite the overall positive trend of foreign direct investment towards Africa, the announcement of new projects remained weak at $39 billion and shows only a weak recovery compared to $32 billion recorded in 2020 and less than $77 billion recorded in 2019.
In parallel, the number of international projects in the field of renewable energies in Africa increased to an estimated 71 projects, almost double the 36 projects completed in 2011.
Among these projects is a $20 billion project that aims to export wind energy to the UK from Morocco.
By laying 3,800 km of submarine cables.

The COVID-19 pandemic significantly impacted foreign direct investment in Africa before the global economy recovered in 2021.

Title:

Content: Monday 17 October 2022
Chairman of the Board of Directors and Editors
Abdurrahim Ali
Editor-in-Chief
Dalia Abdul Rahim
Chairman of the Board of Directors and Editorial Board
Abdurrahim Ali
Editor-in-Chief
Dalia Abdul Rahim
ECONOMY
COMESA: Foreign investment needed to help African countries overcome current conditions
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Heba Salameh, CEO of the Regional Investment Agency (RIA) of the Organization of the Common Market for Eastern and Southern Africa (COMESA) member states, stressed that attracting foreign direct investment has become an imperative to help African countries overcome the repercussions of the current global economic situation.
In her speech today at the opening of a workshop organized by the Regional Investment Agency (RIA) in Victoria Falls, Zimbabwe to showcase global best practices in the areas of investor aftercare, investment facilitation services and promotion of investment opportunities in COMESA member countries, Salama said that last year the global economy showed a recovery from the impact of the Coronavirus pandemic, with foreign direct investment around the world reaching $1.65 trillion in 2021 compared to $929 billion in 2020, up 77%. Report of UNCTAD.
She added that the world then witnessed new developments, which affected economies in various countries and created waves of stagnation and inflation, which highlights the role of promotion agencies and investment bodies in African countries to redouble their efforts to balance the effects of COVID-19 and the global situation on foreign direct investment, and compensate for those effects on the overall economies of countries, through modern practices in attracting direct investments.
The CEO of the Regional Investment Agency (RIA) pointed out that the Regional Investment Agency (RIA) of COMESA has taken it upon itself during the past two years, since the outbreak of the Corona phenomenon, to provide international best practices to the investment promotion agencies in COMESA countries in order to follow up and implement them, which positively reflects on the process of attracting foreign direct investment in the countries of COMESA.
Salama pointed out that the RIA has organized over the past two years 37 regional training programs benefiting more than 1500 trainees from all recreational agencies and investment authorities in the countries of the grouping. These programs included various fields of attracting and promoting foreign direct investment, including e-marketing, mental image enhancement campaigns, investment promotion strategies, statistics of foreign direct investment, and identification and promotion of investment projects.
It is noteworthy that the Regional Investment Agency of the member countries of the Common Market for Eastern and Southern Africa (COMESA RIA) is organizing today a three-day workshop in Victoria Falls, Zimbabwe to strengthen the capacities of investment promotion agencies and bodies in the countries of the Community to attract foreign direct investment.
The workshop aims to help investment agencies and bodies in the countries of the Community to increase their competitiveness to attract foreign direct investment, in light of the growing importance of the role played by these investments in improving the growth rates in the countries, especially in Africa, with the increasing repercussions of the global economic situation on emerging countries in particular.
The workshop, presented by international experts from the world ’ s largest companies and think tanks in the field of attracting and promoting direct investments, will be attended by officials of investment promotion bodies and agencies from 17 of the 21 COMESA member countries.
The workshop will discuss the best international practices in the fields of aftercare for investors, investment facilitation services and promotion of investment opportunities, in light of the repercussions of the Corona crisis and the Russian-Ukrainian war, as well as exchange of experiences and best practices in the field of investment in the world, especially the countries of the grouping.
The 21 member countries of the Common Market for Eastern and Southern Africa (COMESA) are Egypt, Burundi, Comoros, Democratic Republic of the Congo, Djibouti, Eritrea, Estuatini, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Tunisia, Uganda, Zambia and Zimbabwe.

Global foreign direct investment rose 77% to $1.65 trillion in 2021.

Africa's foreign direct investment increased from 2020 to 2022, with a 53% increase in financing in the construction industry.

Title:

Content: Global foreign direct investment reached US $1.65 trillion last year
January 20, 2022 23: 51
Eastern Network Television
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(Photo by Getty Images)
Foreign media reported that the latest report of the United Nations shows that global foreign direct investment (FDI) surged by 77% year-on-year last year to US $1.65 trillion, far higher than US $929 billion in 2020, but the distribution of overseas funds is uneven, mainly concentrated in the developed countries of the United States and Europe, accounting for nearly three-quarters, followed by the developing countries and the poorest countries.
According to the report, FDI from rich countries was estimated at $777.7 billion last year, three times as much as in 2020.
Benefiting from the surge in cross-border M & A transactions, FDI in the United States increased by 114% compared to 2020, and in Europe by more than 80%.
FDI inflows to developing countries last year increased by 30% year-on-year to close to US $870 billion, including accelerated growth in East and Southeast Asia, a return to near pre-pandemic levels in Latin America and the Caribbean, and an increase in West Asia.
There was also more foreign capital flowing into Africa last year than in 2020, with most companies seeing an increase in FDI.
In terms of industry, construction was the big winner last year, with the number of financing increased by 53% year-on-year and the amount of money also surging by 91%, mostly from high-income regions and Asia, Latin America and the Caribbean.

What trends are emerging for African startups in 2022?

Egypt is the top investment destination in Africa and the Arab world, with expected foreign direct investment of $16.5 billion in 2024-2025.

Title:

Content: Tuesday 27 February 2024
Chairman of the Board of Directors and Editors
Abdurrahim Ali
Chairman of the Board of Directors and Editorial Board
Abdurrahim Ali
Portal of Parliament
Parliamentary: Egypt has become the most important investment destination in Africa and the Arab world
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MP Ibrahim El-Deeb, a member of the House of Representatives, said that Egypt is one of the most important investment destinations in the African continent and Arab countries, especially after following various ways that would attract foreign investment and employ it in vital sectors in favor of economic growth, and the recent period is the best evidence of this.
El-Deeb pointed out that Egypt ranked first in North Africa in attracting foreign direct investment according to the United Nations Trade and Development Report 2020, where it succeeded alone in acquiring 15% of the total investments flowing to the continent of Africa according to a report issued by the United Nations for Trade and Development on global investment in 2021.
"The International Monetary Fund has already announced that foreign direct investments will register continuous growth in Egypt, where it is expected to reach 16.5 billion dollars in the fiscal year 2025 – 2024, and what has been achieved on the ground during the last few hours confirms that Egypt is on the right track in the file of direct investment."
He pointed out that foreign direct investment (FDI) is one of the main engines of economic growth in the countries and contributes to the expansion of the investor base in the country, as well as to solve the problem of unemployment through the creation of new jobs and the introduction of new advanced technology for the state, and to learn about modern methods of management, organization and marketing, which leads to the acquisition of national workers. and more experience.

Which African countries are driving the venture capital ecosystem?

South Africa received $40.9 billion in foreign direct investment in 2021, the largest in Africa.

Title:

Content: AFED: EGYPT RECEIVED $5.1 BILLION INVESTMENTS IN 2021
GDP growth is expected to rise to 4.4% this year
Abdulrahman Abu Al-Enein
6: 52 AM, Wednesday, 31 May 23
Recent data issued by the African Development Bank (AfDB) revealed that Egypt ranked second in terms of foreign direct investment flows in the continent in 2021 and attracted nearly $5.1 billion.
According to the Africa Economies Outlook 2023, South Africa was the largest recipient of foreign direct investment in 2021 with investments of more than $40.9 billion, nearly half of the total inflows to the continent in that year, followed by Egypt and Mozambique, which each attracted nearly $5.1 billion, representing about 6.2% of the total volume.
In the same context, the report expected Egypt ’ s GDP growth rate to decline to 4.4% this year from 6.6% estimated last year, and to rise to 5.1% next year.
The report pointed out that the inflation rate rose from 4.5% in the fiscal year 2020 / 2021 to 8.5% in the fiscal year 2021 / 2022 due to the rise in food and energy prices globally and the devaluation of the pound against the dollar.
He said that the current account deficit shrank to 3.5% of GDP in the fiscal year 2021 / 2022 compared to 4.4% in the previous fiscal year 2020 / 2021 due to the rise of tourism revenues to 10.7 billion dollars against 4.9 billion dollars, respectively.
The African Development Bank pointed out that the banking sector remains profitable and well capitalized, noting that the rate of non-performing loans reached 3.2% in June 2022, explaining that subsidies and social protection programs have reduced the impact of high food and energy prices on vulnerable families.
The Minister of Planning Hala Al-Said said in previous statements that despite the current effects of the Russian-Ukrainian crisis, which is likely to spread over the next year, the Egyptian economy is expected to grow by 4.2% by the end of the current fiscal year 2023-2022.
Al-Saeed said that with the development of inflationary trends in the Egyptian economy and despite the success of the state in curbing it and reducing it from very high levels (25% in 2017-2016) to less than 5% in 2021-2020, the rate increased to about 15% in 2022, and continued to rise, especially after the Russian-Ukrainian crisis.
Foreign direct investment in Mozambique increased by 68% in 2021, the report said, noting that these investments were largely directed to green projects in the energy sector.
Nigeria accounted for 5.8% of FDI inflows to Africa and Ethiopia 5.1% despite economic challenges.
The bulk of foreign direct investment in these countries is increasingly going to clean energy resource projects.
Mauritius and South Africa recorded the largest outflows in 2021, but a few countries recorded net inflows, including Egypt ($18 billion) and Nigeria ($5.9 billion).
The Bank estimates that capital flight through net investment outflows continued in 2022 at around $28 billion, which is close to the 2021 level due to higher interest rates linked to deflationary monetary policies in developed countries.
Official development assistance (ODA) to Africa stabilized at $65 billion in 2021 after the previous 28 percent jump in 2020.
The significant increase in such assistance since 2020 reflected the support provided by the international community to help African governments address the humanitarian, social and economic impacts of the coronavirus epidemic and the difficult global economic conditions.
The African countries that saw the largest increase in ODA in 2021 included Egypt (428%), Equatorial Guinea (115%), Angola (109%), Gabon (82%) and Sudan (60%).
The report pointed out that official development assistance to Egypt during 2021 amounted to about 8.2 billion dollars, Ethiopia 4 billion dollars, Sudan 3.8 billion dollars, the Democratic Republic of the Congo 3.5 billion dollars, Nigeria 3.4 billion dollars, and Kenya 3.1 billion dollars.
African countries need to leverage this external support to address existing vulnerabilities and build more resilient economies, given the risks that advanced economies are reallocating resources for reconstruction and humanitarian assistance in Ukraine at the expense of meeting the continent ’ s official development assistance commitments.
Ukraine received $16.1 billion in net official development assistance (ODA), equivalent to 7.8 percent of the total aid resources provided last year.
It is noteworthy that the report was launched in light of the annual meetings of the African Development Bank Group held under the auspices of President Abdel Fattah El Sisi in Sharm El Sheikh from 22 to 26 May.

Mozambique attracted $5.1 billion in foreign direct investment in 2021, a 68% increase.

The UK and France are Africa's largest investors, with $65 billion and $60 billion in FDI stock.

China is Africa's largest foreign investor, with $2.7 billion invested in 2019.

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Content: What can Africa expect from FOCAC 2021?

As the 2021 Forum on China-Africa Cooperation (FOCAC) approaches, we examine the state of the China-Africa relationship and what should be on the table at this year's forum.

The eighth edition of the Forum on China-Africa Cooperation (FOCAC) is due to be held in Dakar, Senegal, from 29-30 November 2021, Senegal’s foreign minister, Aïssata Tall Sall, and the Chinese ambassador to Dakar, Xiao Han, have announced.

The theme of the conference will be “Deepen China-Africa Partnership and Promote Sustainable Development to Build a China-Africa Community with a Shared Future in the New Era”, according to Chinese foreign ministry spokesman Wang Wenbin.

Speaking in a press conference in Beijing on 5 November, he said that the meeting would “review and assess the follow-up implementation of the outcomes of the 2018 FOCAC Beijing Summit as well as the joint China-Africa response to Covid-19, and chart the course for China-Africa relations for the next three years and more to come.”

He also predicted that the forum would “inject new impetus into the China-Africa comprehensive strategic and cooperative partnership”.

Four key themes for the FOCAC agenda

On 8 November, Senegal’s foreign minister and the Chinese ambassador to Dakar, Xiao Han, announced that the forum would adopt four resolutions: The Dakar Action Plan (2022-2024); the 2035 Vision for China-Africa Cooperation; the Sino-African Declaration on Climate Change; and the Declaration of the Eighth Ministerial Conference of FOCAC.

These, predicted Eric Olander, writing on the China-Africa Project website, are likely to “serve as the main pillars” of the forum.

The Senegalese foreign minister said that the forum would appraise the results of China-African cooperation during the Covid-19 pandemic and define how it would continue for the next three years and beyond.

She also announced that the seventh China-Africa Business Conference would take place in parallel with FOCAC at the Diamniadio Exhibition Centre in Dakar and by video conference. The 2018 edition in Beijing hosted more than 1,000 African representatives from over 600 enterprises, business groups, and research institutions.

“FOCAC is our common good. Its success will bring prosperity to current and future generations of Africans and Chinese,” said Aïssata Tall Sall.

In an interview with the Xinhua news agency the minister said she expected the forum to address Africa’s place within the Belt and Road Initiative, underlining its importance to world trade.

Hundreds of ambassadors and diplomats are expected to attend the forum, which is likely to be a mixture of online and live events.

However, as Lina Benabdallah, assistant professor at Wake Forest University, has pointed out on Twitter, the event will be at ministerial level, which means that heads of state such as Chinese President Xi Jinping will not be attending.

“This is no doubt a disappointment to #MackySall who expressed big enthusiasm for hosting (in addition to co-chairing) the #FOCAC meeting. At this point his Minister of foreign affairs is in charge of hosting. #FOCAC at the summit level just brings higher visibility, more perks,” she writes.

We examine further below what is likely to be on the agenda at this year’s forum.

What is FOCAC?

FOCAC is a triennial high-level forum between China and all of the states of Africa, with the exception of Eswatini, which continues to recognise Taiwan.

Modelled on Japan’s Tokyo International Conference on African Development (TICAD), it provides an organising mechanism for Chinese foreign policy toward Africa.

Typically attended by the incumbent Chinese president and many of his counterparts across the continent, FOCAC has frequently played host to eye-catching Chinese policy announcements and financial commitments. The forum is alternately hosted in Beijing and major African capitals.

The China-Africa Business Council’s recent report on China’s private sector investment in Africa looks forward to the event as “another milestone and a new starting point for China-Africa economic and trade cooperation” that will provide “a great opportunity for all African countries to attract foreign investment and expand their international influence”.

“Both Chinese and African enterprises should anticipate the opportunity to enjoy great mutual policy benefits,” says the report.

The forum looks to build on the increasingly close economic relations that have been forged between China and Africa over the last 20 years.

According to the China-Africa Research Institute at Johns Hopkins University, the value of China-Africa trade in 2019 was $192bn, up from $185bn in 2018. In 2019, the largest exporter to China from Africa was Angola, followed by South Africa and the Republic of Congo. In 2019, Nigeria was the largest buyer of Chinese goods, followed by South Africa and Egypt.

China is also Africa’s biggest source of foreign direct investment – investment surged from $75m in 2003 to $2.7bn in 2019. Chinese FDI flows to Africa have exceeded those from the US since 2014. Between 2013 and 2018, 45% of China’s foreign aid went to Africa. The number of Chinese workers in Africa by the end of 2019 was 182,745, according to official Chinese sources.

How has FOCAC impacted the financial relationship between China and Africa?

The first official FOCAC was held in Beijing in 2006, following two major ministerial conferences in Beijing and Addis Ababa in 2000 and 2003. Between 2000 and 2019, the China-Africa Research Institute at Johns Hopkins University estimated Chinese financiers signed 1,141 loan commitments worth $153bn with African governments and their state-owned enterprises.

In 2015, China unveiled its largest commitment of the conference series, a $60bn package of aid, subsidised lending, and state-backed investment, a commitment repeated in 2018.

Chinese financial support has proved crucial to African countries over the last two decades. Loans from government and state-owned banks have enabled the construction of major infrastructure projects across the continent, including highways, ports, airports and government buildings.

But much of that support has been relatively opaque. According to a research paper released in late September by the China Africa Research Institute, Zambia’s outstanding external debt to Chinese financiers is approximately $6.6bn, almost double the $3.4bn revealed by the previous Zambian government. The estimates do not include substantial arrears to Chinese contractors for unpaid projects, part of an estimated domestic arrears pile amounting to $2bn.

What was promised at FOCAC in 2018?

For the first time in the history of the FOCAC meetings, China’s commitments to Africa stayed flat in 2018, with $60bn pledged over three years. Prior forums had seen an exponential growth in commitments, starting from around $5bn in 2006.

According to Annalisa Prizzon, a senior research fellow at the UK-based ODI, the 2018 commitment was more weighted towards aid than previous instalments, with 25% of these commitments – or $5bn a year – in the form of grants, interest-free loans and concessional loans.

In a May speech, Chinese finance minister Wang Yi said that over 85% of the eight major initiatives announced at the 2018 Beijing Summit have been implemented, 70% of the $60bn supporting funds have been disbursed or earmarked, and a large number of cooperation projects have been launched or completed.

Other analysts are less enamoured of the track record of FOCAC in delivering benefits to Africa. Writing for African Business, former Liberian public works minister Gyude Moore says that a vast economic chasm has opened between Africa and China. He argues that this year’s forum presents an opportunity for African states to recalibrate and correct their courses using lessons from China’s past.

Also writing for African Business earlier this year, Hannah Ryder, CEO of Development Reimagined, an African-led international development agency based in Beijing, called for “a more organised, collective approach to engagement” on the part of African leaders at this year’s FOCAC, and summarised her organisation’s blueprint for an African China strategy.

For Ryder, writing in the November issue of African Business, the factors that drove China to commit $60bn to African countries in 2018 remain as strong as ever, but the outcomes of this year’s forum remain uncertain.

Future trajectories of China-Africa relations

The report FOCAC at 21: Future Trajectories of China-Africa Relations published in October by the China Foresight project at the London School of Economics brings together a number of international experts to examine emerging trends likely to shape China-Africa relations in coming years.

  • Stephen Paduano, executive director of the LSE Economic Diplomacy Commission, says that the crux of China’s foreign economic policy since the death of Mao has been running trade surpluses. It is far from certain that China can pull back from its overseas spending spree, as a decline in overseas capital flows would create a decline in China’s trade surplus that could be politically unpalatable.
  • Mzukisi Qobo, head of Wits School of Governance at the University of the Witwatersrand in South Africa, argues that African leaders must use their agency more effectively at FOCAC to seek more market access in China, while also using the African Continental Free Trade Agreement as a basis for industrial development and engagement with external actors.
  • Lina Benabdallah, assistant professor at Wake Forest University, points out that in the early stages of the Covid-19 pandemic, when China was in need of assistance, African states provided much of that aid. China’s reciprocation of that assistance, she says, has filled the void left by the absence of other partners but has yet to reach its full potential. FOCAC 2021 will provide the opportunity to negotiate better delivery deadlines for Chinese vaccines and the possibility of producing more of them locally.

The report also contains articles by experts examining China’s security engagement with Africa, its digital infrastructure in Africa, educational exchanges and collaboration on space technology.

What will be on the agenda at this year’s FOCAC?

Analysts have predicted that an era of “easy” Chinese credit in Africa is drawing to a close , as an economic relationship primarily based on the resource trade has shifted towards infrastructure and a political and strategic relationship.

The Covid-19 pandemic has had a catastrophic financial impact on many African countries, leading to fears of debt defaults on the billions of dollars that China has lent the continent over two decades. The World Bank estimates that Africa’s funding gap stood at $290bn in 2020.

Without debt support, unaffordable payments on the vast portfolio of loans from China and other wealthy nations could lead to a series of chaotic defaults by individual African countries.

For its part, China says it is a participant in the G20 Debt Service Suspension Initiative, and says it has signed debt suspension agreements or similar understandings with 19 African countries.

It has also cancelled interest-free loans due to mature by the end of 2020 for 15 African countries. Yet African countries concerned by their fiscal situation are likely to push for much more generous debt renegotiation and forgiveness.

According to Wang Yi, the conference will also focus on joint efforts against Covid-19, including the provision of more vaccines for the continent. Africa’s share of China’s total global vaccine distribution remains at 8% compared to 61% for Asia, according to a Chinese vaccine tracker report from @BridgeBeijing.

There will also be talks on deepening cooperation on China’s Belt and Road global infrastructure plan and adopting sector-specific cooperation measures for priority areas such as healthcare, investment, trade, industrialisation, agricultural security, climate change, peace and security, human resources and digital economy.

According to the South China Morning Post, African countries will be “pushing to grow their agricultural exports into China” at the forum.

The newspaper quotes an interview by Bloomberg with Uganda’s President Yoweri Museveni in which he says that China should “provide tariff-free, quota-free access” for African goods, such as that allowed by the US African Growth and Opportunity Act (AGOA) or a deal mirroring Europe’s Everything But Arms arrangement for least developed countries.

“The only new thing we shall insist on is market access to the Chinese market, because that will help Africa a great deal,” Museveni told Bloomberg on 1 November. “The next thing I would ask from them is to allow our products to enter their market quota-free, tax-free.”

Mauritius is the only African country to have signed a free trade agreement with China.

A very different FOCAC in 2021?

Discussing the forthcoming forum on the China in Africa podcast, Eric Olander and Cobus van Staden predict that the 2021 edition will be “a very different FOCAC than in recent years”.

They foresee the announcement of smaller infrastructure projects than at previous editions, but believe digital and tech will be big – “expect lots of smart cities projects to be announced,” says van Staden.

Agriculture is a theme that they expect to be much higher on the agenda this year, as it will give China a chance to “stick it to the West”.

On the question of whether China will bring a big chequebook to the table, they say that as no other countries have announced the size of their commitments in recent bilateral meetings with Africa, this will be a chance for China to make an impression.

However, the area in which they most expect China to announce a big number is in the amount of vaccines it will be sending to Africa.

As regards green investment, they ponder whether there will be any gesture to replace the investments in coal on the continent that Beijing has recently cut. Given China’s lead in renewable technology, they see the space for a “real movement forward” in this area.

Additional research and reporting by Charles Dietz.

How has China's FDI in Africa changed from 2003 to 2019?

The African Continental Free Trade Area (AfCFTA) aims to create a single market of 1.3 billion people and $3.4 trillion GDP to attract more foreign investment.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Africa's FDI grew 11% last year, driven by special economic zones.

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.

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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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Google has invested $1 billion in Africa for digital transformation, with companies like SweepSouth expanding to Kenya and Nigeria.

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Content: Optimists talk about Africa as the next economic frontier

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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.

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DP World's £1.2bn investment in Senegal's deepwater port is expected to increase trade by $15bn and facilitate 18% of Senegal's GDP by 2035.

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Content: Photo: DP World

The new port of Ndayane may be DP World’s “largest” investment in Africa, but any hope of it helping unlock the continent’s economies depends on increasing intra-regional connectivity.

Construction of the £1.2bn deepwater port has recommenced after a year-long delay, after president Macky Sall said securing the government’s share of the financing had been resolved. Now there are surging expectations of what the port will do for Senegal’s economy, at least.

“The port of Ndayane and the associated economic zone will reinforce Senegal’s position as a major trade hub and gateway in West Africa,” a DP World spokesperson told The Loadstar.

“Dakar City is choked by over 1,000 trucks entering the port terminal each day. Expansion will support Senegal’s development in the decades to come and address regional disparities with greater infrastructure capacity.”

Working with DP World, British International Investment (BII) has suggested that the new port would enable additional trade, equivalent to 3% of the country’s GDP. This, a spokesperson said, would support a cumulative increase of $15bn in of national trade by 2035, with the port forecast that year to facilitate 18% of GDP and 36% of Senegalese trade.

“Trade enabled by the port will support 2.3m jobs in Senegal, of which 22,000 will be created through additional trade at Ndayane.

“The greatest benefit is expected to be felt by the agriculture and fishing sectors, which are crucial for local and export markets. More than 1,000 direct construction jobs are also expected to be created during construction.”

Sources, however, told The Loadstar that, while money poured into Africa to support raw material exports, not enough was being done to support African products or intra-regional trade.

IRU director of TIR and transit Tatiana Rey-Bellet stressed the need for “better” internal connectivity in Africa and an urgent demand for inland-to-port and cross-continental connections to bolster trade.

“This includes the ‘hardware’ of infrastructure, by which I mean borders, ports, and roads,” Ms Rey-Bellet told The Loadstar. “But more importantly, this requires the ‘software’ of trade to harmonise and improve border processes using international standards.

“In particular, there is an urgent need to facilitate customs procedures with a transit guarantee system such as TIR.”

Indeed, intra-continental trade in Africa is one of the lowest in the world, at 16%, with shippers and forwarders openly criticising what they consider punitive bureaucracy.

Ms Rey-Bellet reiterated that the removal of non-tariff barriers would have “an immediate and pronounced impact” on trade levels across the continent and likely lead to it doubling, if not tripling.

For its part, DP World appears cognisant of the difficulties surrounding intra-regional trade; the spokesperson said African products were often “uncompetitive” on global markets.

The company sees the African Continental Free Trade Area (AfCFTA) as working towards boosting intra-African trade, economic growth.

“Our investment in Rwanda is proof of this; we are eliminating barriers along the supply chain, bolstering global trade flows and removing unnecessary bottlenecks,” said the spokesperson. “We overcame Rwanda’s landlocked geography to help transform it.

“Our logistics hub in Kigali, with efficient access to two ports, has helped increase exports, allowing Rwanda’s agricultural products to reach markets in Europe, the US and Middle East.”

And the spokesperson said DP World’s investment in Senegal would serve another landlocked nation, Mali, which transits 70% of its trade through the congested Dakar terminal, while the authorities consider construction of a freight railway line.

“Collectively, we can develop and manage infrastructure that grows local economies, enabling international, regional and intra-African trade. Initiatives like these are just the first steps to unlocking Africa’s potential.”

China accounts for 31% of Africa's infrastructure projects, with $50 million in contracts and $300 billion invested in the continent.

Title:

Content: Wednesday 23 August 2023
Chairman of the Board of Directors and Editors
Abdurrahim Ali
Editor-in-Chief
Dalia Abdul Rahim
Chairman of the Board of Directors and Editorial Board
Abdurrahim Ali
Editor-in-Chief
Dalia Abdul Rahim
The world.
China accounts for 31% of Africa ’ s infrastructure projects
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According to a report by the Heinrich Foundation, a Singapore-based charity that promotes sustainable global trade, China ’ s rise in infrastructure construction in Africa has accelerated since the launch of the Belt and Road Initiative in the fall of 2013.
Chinese companies accounted for 31 per cent of Africa ’ s infrastructure contracts last year, worth more than $50 million, compared with just 12 per cent of Western competitors, the report said.
The report pointed out that China ’ s strong rise in infrastructure projects in Africa has increased since the launch of the Belt and Road Initiative, and in 1990, Western companies accounted for 85% of infrastructure contracts in Africa.
In 2013, Chinese companies accounted for only 12% of these contracts, compared to 37% for Western companies.
The report also revealed that the value of infrastructure projects implemented by China in Africa over the past two years amounted to 155 billion dollars, compared to only 44.8 billion dollars for foreign direct investment by the United States in the continent in 2021.
According to a recent study by consulting firm McKinsey, more than 10,000 Chinese companies are now operating in Africa, and the combined revenues of these companies, which have invested $300 billion in the continent, are expected to reach $440 billion in 2025.

The US will invest $33 billion in Africa from 2022-2025, including $14 billion from companies like Marriott and General Electric.

Title:

Content: US to invest $33 billion in Africa to build strong economic ties
Kazakhstan News Agency Astana, August 5, according to the global network quoted the French "Liberation" news, US President Barack Obama announced on August 5 local time that the United States will provide more than 30 billion US dollars (about 185.058 billion yuan) of public assistance and private investment to Africa, and called on African leaders to jointly establish a favorable trade environment.
Reported that the United States wants to catch up with the development of Europe and China in Africa, there is still a certain distance.
At the U.S.-Africa summit, Obama pointed out that trade between the United States and the entire African continent is equivalent to trade between the United States and Brazil alone.
Only 1 percent of U.S. exports go to sub-Saharan Africa.
President Obama said the United States will invest 33 billion dollars in Africa.
The United States, led by Marriott International and General Electric, will invest 14 billion U.S. dollars in Africa, mainly in construction, banking and information technology.
In addition, the report pointed out that under the framework of the United States "Power Africa" plan, the United States private investment in Africa will also increase.
The plan aims to double electricity coverage in sub-Saharan Africa.
Taking into account the support of the World Bank and the Swedish government, the program will have a total of 26 billion US dollars at its disposal.
The International Monetary Fund expects Africa to grow by 5.8% in 2015, and the U.S. government and industrial giants want to establish strong economic ties with Africa.
After unveiling the investment plan, Obama did not forget to emphasize the responsibility of African leaders.
"The key to the new era of Africa's development lies not in the United States, but in Africa," he said.
Other U.S. government officials also said that many African countries have broken the unipolar model and taken the initiative to sign cooperation agreements with their trading partners.
Africa should not always be associated with "conflict, disease and poverty".
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What trends are emerging for African startups in 2022?

Which countries are actively investing in Africa besides China?

India, Turkey, Belgium, China, and Qatar are expected to invest in Egypt, with India's share being $13 billion.

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Content: General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
$21 billion in foreign investment.
A huge package is entering Egypt at this time.
The government has recently worked on a series of legislative reforms, laws and decisions that will make the Egyptian market attractive to foreign investments, and open the appetite of investors, large companies and business owners to pump more capital by removing the challenges that hinder their work.
New investment package
Minister of Commerce Yahya Al-Wathiq Ballah, head of the Commercial Representation Authority, said that a number of foreign companies have expressed their desire to invest in the Egyptian market in many industrial fields, especially from India, China, Japan, Turkey, Germany and Belgium, and these companies are expected to be present in the Egyptian market during the second quarter of 2024.
This came during a panel discussion held under the title: "Prospects for growth in the food industry and agricultural crops sector by focusing on the food safety file" on the sidelines of the "Food Africa" exhibition, which will be held from 12 to 14 December at the Egyptian Exhibition Center.
He stressed that 21 billion and 500 million dollars foreign investments are expected to enter Egypt soon, pointing out that the export faces challenges, including: the phenomenon of commission selling and burning prices through the entry of new segments in the sector because of their desire to obtain the dollar at any price, calling for the purification of exporters' statements and the formation of a technical committee to accept or reject some of them because they burn prices and reduce ton to an unacceptable level.
He stressed that the volume of industrial investments in Egypt amounts to 75 billion dollars industry, and the equivalent of 35 billion dollars are exported annually against a country such as Germany exports 300 billion dollars annually, while industrial investments amount to one trillion dollars, pointing out that Egypt will get 21 billion and a half billion dollars foreign investments soon through Indian investments of 13 billion dollars, Turkey 3 billion dollars, Belgium 3 billion dollars and finally China 2.5 billion dollars to ease the pressure on the dollar.
He revealed that the State of Qatar will inject new investments in the coming period in Egypt as Cairo has great opportunities in its participation in the free trade agreement and COMESA.
He pointed out the importance of maximizing the benefit of the trade agreements concluded by Egypt with many countries and global economic blocs, including: African Continental Free Trade Agreement, which includes 54 countries, where 47 countries have ratified the agreement, and the remaining 7 countries are in the process of ratification, pointing out that it was agreed with a bank operating in the Egyptian market to provide risk insurance systems for Egyptian exports destined to the African market at prices lower than those offered by international insurance companies. Egypt to a number of African countries, in addition to contributing to the financing of the establishment of logistics zones to increase the presence of Egyptian products in the markets of the continent.
Last November, Cairo received official delegations from Gulf countries to discuss pumping new investments in the local market in various economic activities, a few days after international institutions announced their intention to pump investments in Egypt, where Saudi Arabia began the visits of Gulf delegations to Egypt, with a delegation headed by the Saudi Minister of Commerce, Majid Al-Qasabi, accompanied by 91 Saudi businessmen.
Gulf Investments for Egypt
Media reports quoted the intention of one of the companies of the Fawaz Al-Hokair Group to invest $1.5 billion in the sectors of energy, infrastructure and real estate during 2024, in addition to the investment of one of the companies of the Bin Laden Group in the real estate sector, followed by the visit of a Qatari delegation, headed by Lulwa Al-Khater, Minister of International Cooperation, to discuss increasing investments between the two countries.
A Bahraini delegation headed by Minister of Finance and Economy Salman bin Khalifa Al Khalifa also visited Egypt, who announced his country ’ s intention to double the volume of trade with Egypt to $1 billion annually, and invest Bahraini companies in the aluminum industry, tourism, telecommunications, post and banking sector.
An Omani delegation, headed by Qais bin Mohammed Musa al-Yousef, Minister of Trade, Industry and Investment Promotion, held the meeting.
According to an official statement, the Bahraini Minister of Finance and National Economy said that "the promising investment opportunities available in Egypt compete with the best investment opportunities available in the world in terms of returns and investment values, and Egypt has commercial, logistical and tourism opportunities that will affect the movement of the global economy."
Moharram Helal, president of the Egyptian Federation of Investors Associations, pointed out that the Egyptian assets have become attractive for investment in light of the decline of the local currency against the dollar, adding: "The foreign investor who will not invest in Egypt during the current period will regret all his life.
Food Africa is one of the most important and largest international events in the field of specialized exhibitions in the African continent, organized by CONCEPT in cooperation with the Exhibition Authority (Düsseldorf) and the IFP Group during the period from 12 to 14 December 2023.
Minister of Trade and Industry Ahmed Samir, Minister of Supply and Internal Trade Dr. Ali Al-Maselhi and Minister of Transport Lieutenant General Kamel Al-Wazir inaugurated the eighth edition of the Food Africa exhibition for food industries in its eighth session along with the Back Process exhibition for packaging and food processing two days ago.

Which Asian countries are investing in Africa?

Which countries are actively investing in Africa besides China?

British International Investment will invest $60 billion in Africa over five years.

Title:

Content: British International Investment Plc (BII) aims to invest $60 billion in Africa over the coming five years, Bloomberg reported on July 27th.

The investments will be made in several fields including renewable power and digital infrastructure, along with supporting women-owned businesses.

BII will pay attention to the powerhouse markets in Ethiopia, Kenya, Nigeria, and Egypt, with the investments being focused on the private sector.

The support plan, which is a part of a global program worth $10 billion, covers a $76 million contribution to a $500 million fund being arranged by Old Mutual Ltd’s African Infrastructure Investment Managers.

For his part, BII’s CEO Nick O’Donohoe said in an interview that his fully-owned company by the UK has been a major investor in power, particularly renewable energy, in Africa over the past three or four years.

Copyright © 2022 Arab Finance Brokerage Company All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

What trends are emerging for African startups in 2022?

Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

African fintech revenues are expected to reach $30bn by 2025, with over 5,200 tech start-ups already present in 2021.

Title:

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

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

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

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

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

Fintech sector

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

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

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

Risk premium

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

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

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

Picture: 123RF