Africa has the highest return on investment in the world, with African countries having unprecedented competitive opportunities and huge investment opportunities for investors.

The continent has seen significant growth in foreign investment, with China's investment in Africa growing by 9.5% in 2020, reaching $2.96 billion.

Non-financial direct investment from China was $2.66 billion in 2020, with investment in Africa's service sector increasing sharply in 2020.

Investment in scientific research and technology more than doubled, and investment in transport and warehousing more than doubled in 2020, with Chinese investment in Africa expanding despite global economic decline.

The Africa Investment Forum coordinated $32.8 billion investments, with the largest deal being $15.6 billion for the Lagos-Abidjan highway.

Projects addressed agriculture, education, energy, and healthcare, with a new medical city to be created in the Senegalese capital and a fund for health services for low-income populations in South Africa.

Two pharmaceutical manufacturing platforms were established in West Africa and Kenya, with investment flows helping to accelerate the African Continental Free Trade Area.

Egypt ranked first in North Africa in attracting foreign direct investment in 2020, with Egypt acquiring 15% of total investments in Africa in 2021.

Foreign direct investment in Egypt is expected to reach $16.5 billion in 2024-2025, with Egypt being the most important investment destination in Africa and the Arab world.

Sub-Saharan Africa needs $425 billion financing by 2030, with the Africa Investment Forum hosting 2021 Market Days in Abidjan to focus on agriculture and agro-processing investments.

Energy and climate investments are also prioritized, with health sector investments being highlighted at the forum and ICT and telecommunication investments being discussed.

Global FDI reached $1.65 trillion in 2021, surpassing pre-pandemic levels, with FDI increasing 77% in 2021 from the previous year.

FDI in the US jumped 114% from the previous year, and FDI in Europe increased by over 80% in 2021, with FDI inflows to developing countries increasing by 30% in 2021.

Africa received more foreign capital in 2021 than in the previous year, with infrastructure sector financing increasing by 53% in 2021.

China is Africa's largest trading partner for 15 years, with China-Africa trade reaching $282.1 billion in 2023 and China's direct investment in Africa exceeding $40 billion by 2022.

China imported African agricultural products increased by 130% in 2023, and new energy vehicle exports to Africa increased by 291% in 2023, with China-Africa investment cooperation growing steadily.

Egypt received $5.1 billion investments in 2021, and South Africa received $40.9 billion investments in 2021, with Mozambique receiving $5.1 billion investments in 2021.

Nigeria accounted for 5.8% of FDI inflows to Africa in 2021, and Ethiopia accounted for 5.1% of FDI inflows to Africa in 2021, with Mauritius and South Africa recording the largest outflows in 2021.

The UK and France led African investments with $65 and $60 billion, respectively, with Europeans being the largest investors in Africa.

FDI to North Africa was down 5% in 2021 to $9.3 billion, and Africa's FDI reached $83 billion in 2021, double the amount in 2020.

BII plans to invest $60 billion in Africa over five years, focusing on renewable power and digital infrastructure, with support for women-owned businesses in Africa.

The investment focus is on the private sector in Ethiopia, Kenya, Nigeria, and Egypt, with a $76 million contribution to the African Infrastructure Investment fund.

The Africa Investment Forum attracted $180 billion since its 2018 launch, with $3 billion committed to the Alliance for Special Agro-Industrial Processing Zones.

The Islamic Development Bank committed $300 million to agro-industrial growth, and there were deals in agri-business, renewable energy, and healthcare sectors.

Africa is considered a dynamic and promising market globally, with the Africa Investment Forum having over 60 country representatives attending and focusing on South-South partnerships and infrastructure financing.

Major foreign companies such as Eni, Apache, and BP have invested significantly in Egypt, with a total investment of $12.6 billion.

Eni has invested $7.7 billion in Egypt, while Apache has invested $1.4 billion and BP has invested $3.5 billion.

Saudi Arabia has also made significant investments in Africa, with a planned investment of $41 billion until 2030, targeting 54 African countries.

The investments by Saudi Arabia are focused on development and humanitarian purposes, with $25 billion allocated to various African sectors.

China has also been a major investor in Africa, with $182.4 million invested in Rwanda in 2022, and a total of $357.7 million invested in Rwanda in 2021.

Chinese companies have built $155 billion worth of projects in sub-Saharan Africa, with a focus on infrastructure development.

The China-Africa TEDA investment company has invested $5 billion in 8 projects in Egypt's Suez Canal zone, creating 7,000 job opportunities.

US companies such as Marriott International and General Electric are also investing in Africa, with a planned investment of $33 billion, focusing on construction, banking, and IT.

The US "Power Africa" plan aims to double electricity coverage in sub-Saharan Africa, with $26 billion available for investment.

The European Union has also announced plans to invest $150 billion in Africa's infrastructure, as part of its Global Gateway initiative.

The UK has been a significant investor in Africa, with British International Investment investing $60 billion in the continent, focusing on renewable power and digital infrastructure.

Other major investors in Africa include France and the Netherlands, with $54 billion invested in the continent.

African entities such as the Egyptian government and the Rwandan government have formed partnerships with foreign companies, such as Eni and China-Africa TEDA, to attract investments and promote economic development.

The energy and gas supply sector has been a major recipient of foreign investment, with projects worth $120 billion.

The investment trends in Africa are shifting towards renewable energy, with companies such as bp and Shell investing in LNG projects and solar energy.

Perenco has invested $50 million in a Batanga LPG plant in Gabon and is developing a $1 billion Cap Lopez LNG terminal in Gabon.

Tullow Oil anticipates commercial oil production in Kenya in 2028, while Chariot oil and gas has signed a gas commercialization agreement in Morocco.

CDC Group has invested $440 million in Egypt across 39 companies and plans to invest $700 million in Africa with DB World.

DP World and CDC have invested $1.7 billion in African logistics services, with investment locations including Sokhna in Egypt, Dakar in Senegal, and Berbera in Somalia.

Egypt is Africa's top investment destination, with the country acquiring 15% of Africa's total FDI in 2021.

Egypt had $5.122 billion FDI inflows in 2022, with clean energy and infrastructure being prominent sectors for FDI inflows.

The country aims to increase FDI to $11.7 billion in 2023, with Gulf countries investing heavily in Egypt's market.

South Africa received $40.889 billion FDI inflows in 2022, making it one of the top recipients of FDI in Africa.

Mozambique and Nigeria also received significant FDI inflows in 2022, with $5.102 billion and $4.844 billion, respectively.

Ethiopia received $4.259 billion FDI inflows in 2022, with the country's FDI inflows expected to continue growing in the coming years.

The majority of FDI in Africa went to clean energy projects in 2021, with energy and gas supply projects increasing to $120 billion.

Construction and extractive industries projects also saw significant investment, with project values rising to $24 billion and $21 billion, respectively.

European investors own the largest FDI in Africa, with the UK holding $65 billion in total FDI stock in Africa as of 2020.

The UK's FDI in Africa is mainly in oil, gas, mining, and financial services, with $2.1 billion invested in oil and gas deals in 2022.

Fintech revenues in Africa are expected to reach $30 billion by 2025, with seven of the 10 newly minted African unicorns in 2021 being fintechs.

British International Investment made a $150m investment in Kelix bio in 2020, and has committed to investing $60 billion in Africa over five years.

The investment focus is on renewable power and digital infrastructure, with support for women-owned businesses and a focus on key markets like Ethiopia, Kenya, Nigeria, and Egypt.

MultiChoice Africa Accelerator Programme has expanded to eight countries, providing funding for emerging businesses in the technology sector.

The programme focuses on healthtech, agritech, fintech, edutech, and creative industries, and aims to support small business development in Africa.

The African Development Bank backs small-business development as an economic strategy, and the MultiChoice Africa Accelerator offers virtual

Africa has the highest return on investment in the world, with African countries having unprecedented competitive opportunities and huge investment opportunities for investors.

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Content: Thursday 25 May 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
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Dalia Abdul Rahim
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Hassan Abdullah: African markets have the highest return on investment in the world
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The African Development Bank Group ’ s annual meetings for 2023, hosted by Egypt in Sharm El-Sheikh from 22-26 May 2023, and chaired by the Governor of the Central Bank of Egypt, Hassan Abdullah, addressed a number of important topics, foremost of which was to put forward a complete vision to attract the private sector and expand business in the continent, according to real investment standards based on feasibility studies and profit, rather than social responsibility. African countries have unprecedented competitive opportunities and high returns on invested capital.
In this regard, Hassan Abdullah, Governor of the Central Bank of Egypt and Chairman of the Board of Governors of the African Development Bank Group, said that the African continent has the highest return on investment in the world for the private sector and has huge and unprecedented investment opportunities for investors, pointing out that this potential qualifies the continent to attract private capital and international investments to work within its countries based on the principles of investment such as profitability and return on capital.
He also stressed the importance of providing mechanisms to reduce the risks that hinder the expansion of private sector investments in Africa, while creating financing opportunities commensurate with the conditions of the African continent, in terms of long lending terms and low cost of interest, in order to encourage attracting private investments, enhance capital flows to promote the economies of the region, and benefit from the strong competitive opportunities offered by African countries.
He expected that the provision of incentives to attract private investments in the African continent, and the arrival of the private sector to invest in the countries of the continent, will contribute to making Africa at the forefront of the continents to achieve growth rates, because of the resources it has to qualify to achieve this.
The meetings of the Board of Governors of the African Development Bank Group, chaired by the Governor of the Central Bank of Egypt, witnessed the attendance of about 3,650 participants, representatives of 81 countries, with the participation of central bank governors, ministers of finance, planning and investment, and senior government officials, including 54 African countries and 27 non-African countries, in addition to the participation of the G7 countries: America, France, Britain, Italy, Canada, Japan and Germany.
The African Development Bank (AfDB) is a multilateral development finance institution established in 1964 to contribute to economic development and social progress in African countries.

What trends are emerging for African startups in 2022?

The continent has seen significant growth in foreign investment, with China's investment in Africa growing by 9.5% in 2020, reaching $2.96 billion.

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Content: Global Economic News
Despite the global decline...
China ’ s investment in Africa grows by 9.5%
Chinese investment in Africa has been expanding steadily despite a downward trend in the global economy and trade caused by the outbreak of the pandemic, according to an official report.
Quoting the "Annual Report on China-Africa Economic and Trade Relations 2021," Xinhua said China's investment in Africa reached $2.96 billion in 2020, up 9.5 percent year on year.
Of the total value, non-financial direct investment was $2.66 billion.
The report was released ahead of the second China-Africa Economic and Trade Fair scheduled to be held in Hunan, central China, from Sept. 26 to 29.
China ’ s investment in Africa ’ s service sector increased sharply, with investment in subsectors such as scientific research, technology services, transport, warehousing and postal services more than doubling, according to the report.
Data from the Ministry of Commerce showed that in the first seven months of 2021, Chinese direct investment in Africa reached $2.07 billion, better than the level recorded for the same period in 2019, before the pandemic.
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Non-financial direct investment from China was $2.66 billion in 2020, with investment in Africa's service sector increasing sharply in 2020.

Which sectors received the most foreign investment?

Investment in scientific research and technology more than doubled, and investment in transport and warehousing more than doubled in 2020, with Chinese investment in Africa expanding despite global economic decline.

The Africa Investment Forum coordinated $32.8 billion investments, with the largest deal being $15.6 billion for the Lagos-Abidjan highway.

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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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Projects addressed agriculture, education, energy, and healthcare, with a new medical city to be created in the Senegalese capital and a fund for health services for low-income populations in South Africa.

Which sectors are Chinese investments in Africa focusing on?

Two pharmaceutical manufacturing platforms were established in West Africa and Kenya, with investment flows helping to accelerate the African Continental Free Trade Area.

What trends are emerging for African startups in 2022?

Which African countries are driving the venture capital ecosystem?

Which sectors are Chinese investments in Africa focusing on?

Which sectors received the most foreign investment?

Egypt ranked first in North Africa in attracting foreign direct investment in 2020, with Egypt acquiring 15% of total investments in Africa in 2021.

Title:

Content: Tuesday 27 February 2024
Chairman of the Board of Directors and Editors
Abdurrahim Ali
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Abdurrahim Ali
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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?

Foreign direct investment in Egypt is expected to reach $16.5 billion in 2024-2025, with Egypt being the most important investment destination in Africa and the Arab world.

Which African countries are driving the venture capital ecosystem?

Sub-Saharan Africa needs $425 billion financing by 2030, with the Africa Investment Forum hosting 2021 Market Days in Abidjan to focus on agriculture and agro-processing investments.

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Content: Sub-Saharan Africa needs $425bn financing by 2030 – Adesina

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AfDB President, Akinwumi Adesina

The President of the African Development Bank, Dr Akinwumi Adesina, says Africa needs $425bn in additional gross financing by 2030.

He said this in a statement announcing that the Africa Investment Forum was set to host its 2021 Market Days in Abidjan, Côte d’Ivoire.

Adesina said, “We look forward to welcoming investors to join us in Abidjan – and virtually around the world – to take the next step in Africa’s growth.

“To achieve this growth, however, and to bounce back to pre-pandemic levels, Africa will need significant financial support.

“As an example, the whole of Sub-Saharan Africa will need $425bn in additional gross financing by 2030.”

The statement signed by the Communication and External Relations Department Officer, Olufemi Terry, said that the annual business gathering would showcase transformative investment opportunities across the continent.

The AfDB added that discussions at the gathering would focus on agriculture and agro-processing; energy and climate; health; ICT and telecommunication; and industrialisation and trade.

It said these are all sectors prioritised under the Africa Investment Forum’s Unified Response to COVID-19 initiative launched in 2020.

The forum is set to hold from December 1-3, 2021.

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Energy and climate investments are also prioritized, with health sector investments being highlighted at the forum and ICT and telecommunication investments being discussed.

Global FDI reached $1.65 trillion in 2021, surpassing pre-pandemic levels, with FDI increasing 77% in 2021 from the previous year.

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

Africa received more foreign capital in 2021 than in the previous year, with infrastructure sector financing increasing by 53% in 2021.

China is Africa's largest trading partner for 15 years, with China-Africa trade reaching $282.1 billion in 2023 and China's direct investment in Africa exceeding $40 billion by 2022.

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Content: 【 Printing 】
China has maintained its status as Africa ’ s largest trading partner for 15 consecutive years.
Related LINKS http: / / www.CRNT.com 2024-02-21 11: 08: 01
BEIJING, Feb. 21 (Xinhua) -- China has maintained its status as Africa 's largest trading partner for 15 consecutive years. In 2023, China-Africa trade reached a historical peak of US $282.1 billion, an increase of 1.5% year-on-year.
According to Changjiang Wei, Department of West Asia and Africa of the Ministry of Commerce, economic and trade cooperation is the "ballast stone" and "booster" of China-Africa relations.
Driven by the pragmatic measures of the past sessions of the Forum on China-Africa Cooperation, China-Africa economic and trade cooperation has always maintained a strong vitality, and China-Africa economic and trade cooperation has achieved fruitful results.
The scale of China-Africa trade has reached new highs and the structure has continued to be optimized.
Imported agricultural products from Africa have become a bright spot for growth. In 2023, China imported nuts, vegetables, flowers and fruits from Africa increased by 130%, 32%, 14% and 7% respectively.
Mechanical and electrical products to non-exports of the "main force", "new three" products to non-exports to achieve faster growth, new energy vehicles, lithium batteries, photovoltaic products exports increased by 291%, 109% and 57%, strong support for Africa's green energy transformation.
China-Africa investment cooperation is growing steadily.
China is the largest non-investment developing country.
By the end of 2022, China ’ s stock of direct investment in Africa exceeded US $40 billion. In 2023, China ’ s direct investment in Africa still maintained a growth trend.
The industrial agglomeration effect of parks such as the China-Egypt Teda Suez Economic and Trade Cooperation Zone, Hisense South Africa Industrial Park, and Nigeria ’ s Laiki Free Trade Zone continues to show, attracting a number of Chinese enterprises to invest in Africa, covering various fields such as building materials, automobiles, household appliances, and agricultural product processing.
China-Africa cooperation in infrastructure construction has achieved remarkable results.
Africa is China's second largest overseas contract engineering market, Chinese enterprises have accumulated more than 700 billion US dollars in non-signed contract engineering contracts, completed turnover of more than 400 billion US dollars, and implemented a number of landmark projects and "small and beautiful" projects in the fields of transportation, energy, electricity, housing and people's livelihood.
The African Center for Disease Control and Prevention, the Lower Kaifu Gorge Hydropower Station in Zambia, and the Senegalese Fanggioni Bridge have been completed, which has effectively promoted the local economic and social development.
The momentum of China-Africa cooperation in emerging fields has accumulated.
Cooperation in emerging areas such as digital economy, green and low-carbon, aerospace, and financial services has continued to expand, injecting new vitality into China-Africa economic and trade cooperation.
China and Africa joined hands to expand the cooperation of "Silk Road E-commerce", successfully held the African Good Goods Network Shopping Festival, and implemented the African "100 stores, 1000 products on the platform" action, which led Chinese enterprises to actively contribute to the development of African e-commerce, mobile payment, media entertainment and other industries.
China has signed air services agreements with 27 African countries and successfully built and launched meteorological communication satellites for Algeria and Nigeria.
Not long ago, the "China-Africa Economic and Trade Cooperation Pilot Zone Construction Master Plan" was approved by the State Council and agreed to be officially issued, actively supporting Hunan Province in the construction of the China-Africa Economic and Trade Cooperation Pilot Zone, becoming another major event in the development of China-Africa economic and trade cooperation. "In the past three years, the province has maintained an average annual growth of 23.1% of rapid development momentum.
Equipment manufacturing, energy mining, road and bridge housing construction, agricultural development and other advantages of the industry into Africa, hybrid rice, engineering machinery and other technologies and products enjoy popularity in Africa. "The long-term mechanism of trade cooperation and exchange.
Jiang Wei said that the Chinese side will continue to uphold the concept of true affinity and the correct concept of justice and benefit, and work with the African side to fully play the role of the leading region, lead the transformation and upgrading of China-Africa economic and trade cooperation, improve quality and improve efficiency, and better benefit the Chinese and African people.
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Who is Africa's largest trading partner and what was the trade value in 2023?

China imported African agricultural products increased by 130% in 2023, and new energy vehicle exports to Africa increased by 291% in 2023, with China-Africa investment cooperation growing steadily.

Egypt received $5.1 billion investments in 2021, and South Africa received $40.9 billion investments in 2021, with Mozambique receiving $5.1 billion investments in 2021.

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.

Nigeria accounted for 5.8% of FDI inflows to Africa in 2021, and Ethiopia accounted for 5.1% of FDI inflows to Africa in 2021, with Mauritius and South Africa recording the largest outflows in 2021.

The UK and France led African investments with $65 and $60 billion, respectively, with Europeans being the largest investors in Africa.

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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.

Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

FDI to North Africa was down 5% in 2021 to $9.3 billion, and Africa's FDI reached $83 billion in 2021, double the amount in 2020.

BII plans to invest $60 billion in Africa over five years, focusing on renewable power and digital infrastructure, with support for women-owned businesses in Africa.

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 sectors are Chinese investments in Africa focusing on?

The investment focus is on the private sector in Ethiopia, Kenya, Nigeria, and Egypt, with a $76 million contribution to the African Infrastructure Investment fund.

What trends are emerging for African startups in 2022?

The Africa Investment Forum attracted $180 billion since its 2018 launch, with $3 billion committed to the Alliance for Special Agro-Industrial Processing Zones.

Title:

Content: News

November 13, 2023

We are building power house around investment in Africa – Adesina

AfDB President, Dr. Akinwumi Adesina

By Jimoh Babatunde

The President of the African Development Bank , Dr. Akinwumi Adesina, says the bank is building a formidable powerhouse around investments in Africa, that will deliver transformative impacts on the lives of people.
He made this known in the Moroccan city of Marrakech, weekend, at the close of the day global event, Africa Investment Forum’s 2023.

The Africa Investment Forum’s 2023, which drew over 1,000 delegates from more than 60 countries , generated $34.82 billion in investment interest for infrastructure, agriculture, health, and creative industry projects.
Speaking on the event with the theme “Unlocking African Value Chains,” Adesina said “We are building a formidable powerhouse around investments in Africa, that will deliver transformative impacts on the lives of people.
“That is the bottom line of the Africa Investment Forum: investing to improve lives.”
The African Development Bank Group President, and Chairperson of the Africa Investment Forum, Dr. Akinwumi Adesina,thanked Moroccan King Mohammed VI who placed the event under his high patronage.

“Morocco is the right choice. We have been treated to incredible hospitality. The decision of the Africa Investment Forum founding partners to hold the 2023 Market Days in Marrakech two months after September’s devastating earthquake, and the support and resilience of the Kingdom and government of Morocco is highly commendable.”

Morocco’s Minister of Economic Inclusion, Small Business, Employment and Skills Younes Sekkouri, said the Forum underlined the critical importance of South-South partnerships and the crucial issue of financing infrastructure.

“Africa is at the forefront of international attention as one of the most dynamic and promising markets in the world…The Africa Investment Forum has been a turning point to explore these opportunities, discuss challenges and solutions and strengthen the partnerships necessary to realise our aspirations,” Sekkouri said.

Among delegates were several African heads of state and government, including President Azali Assoumani of Comoros and current chair of the African Union, President Samia Suluhu Hassan of Tanzania, President Julius Maada Bio of Sierra Leone, Rwanda’s Prime Minister Eduoard Ngirente. Also in attendance was the Prime Minister of Barbados, Mia Mottley.

The Africa Investment Forum is a multi-stakeholder platform focused on continental dealmaking and project facilitation between project sponsors, policy makers and investors. With this edition, the Forum has attracted nearly $180 billion in investment interest since it was launched in 2018.

Deals covered several sectors including the Mtwara-Mbamba Bay standard Gauge railway line in Tanzania, and the Mangapwani II Integrated Port in Zanzibar. There were also deals in agri-business, renewable energy, creative industries and healthcare.
At the launch event of the Alliance for Special Agro-Industrial Processing Zones, the African Development Bank, the Africa Export-Import Bank, the United Nations Industrial Development Organization, committed $3 billion to the alliance.

Founding partners commend Market Days

The Chief Executive Officer of the Islamic Trade Finance Corporation Eng. Hani Salem Sonbol, representing the President of the Islamic Development Bank Dr. Muhammed Sulaiman Al Jasser, said Africa was a land of boundless possibilities and a dynamic engine of growth.

“As a founding partner of the Alliance for Special Agro-Industrial Processing Zones, IsDB committed $300 million to fuel Africa’s agro-industrial growth. We are ready to partner with investors, businesses, and development partners to unlock the full potential of the continent,” he said.

The Africa Investment Forum showcased several key side events including regional transport corridors, a roundtable with a Japanese business delegation, and a Mayor’s Forum on leveraging cities and municipalities to unleash growth and development.
The Mayoral event included mayors and governors from Lagos, Nairobi, Addis Ababa, Abidjan and ministerial representation from Rwanda.

The Islamic Development Bank committed $300 million to agro-industrial growth, and there were deals in agri-business, renewable energy, and healthcare sectors.

Africa is considered a dynamic and promising market globally, with the Africa Investment Forum having over 60 country representatives attending and focusing on South-South partnerships and infrastructure financing.

Major foreign companies such as Eni, Apache, and BP have invested significantly in Egypt, with a total investment of $12.6 billion.

Title:

Content: Wednesday, 06 September 2023 09: 39 GMT
Three international oil companies plan to invest $12.6 billion in Egypt
(MENAFN- Al-BoNews) Three international energy companies announced the injection of new investments worth $12.6 billion in Egypt over a period of one to four years, heralding the return of foreign investments in the sector to record a net inflow after witnessing a net exit of investments worth $4.7 billion during the period between July 2020 and March 2023.
Italy ’ s Eni said it plans to invest $7.7 billion in Egypt over the next four years, but gave no further details.
In its annual report for last year, Eni said it plans to increase production from Algeria and Egypt, raising the volume of its exports to Europe, which is seeking to dispense with oil and gas from Russia.
Egypt ’ s ENI reserves are 167 million barrels of liquids and 3.881 billion cubic feet of gas.
By the end of 2022, the number of oil wells operated by (ENI) reached 1253 wells, including 533.5 wells exclusive, while the gas fields reached 145 wells, including 44.7 wells, in 55 concessions.
The operator of the Zohr field said it had invested about $6 billion in the field by the end of 2022, including $373.9 million last year alone, and that its reserves from the field amount to about 650 million barrels of equivalent.
Apache said it plans to invest $1.4 billion in Egypt next year to explore and drill wells.
By the end of June, the company ’ s total assets in Egypt amounted to $3.365 billion, compared to $3.107 billion, and the company ’ s oil and gas production increased by 226.9 million barrels equivalent per day.
BP plans to invest $3.5 billion in research, exploration and development in the country over the next three years, in addition to drilling four new wells during the last quarter of this year, according to a statement from the Ministry of Petroleum.
The CEO of the British company, Bernard Looney, said that these investments are likely to double if new discoveries are made, and that the company is moving forward to develop its investments in Egypt and expand the development of natural gas resources.
According to the company ’ s annual report, it produces about 60% of Egyptian gas by the end of 2022, with a production rate of 1.272 billion cubic feet, other than 28 thousand barrels per day of crude oil.
The sector has not seen a net inflow since the fiscal year 2019-2020, when the net inflow at the time amounted to $1.1 billion, but it received foreign investments worth $13 billion since June 2013 until the end of March, including $12.8 billion net inflow after the liberalization of the exchange rate in the fiscal year 2016-2017 and 2018-2019.
Although the sector ’ s investments have not yet recovered since the pandemic, and the subsequent economic crisis; because of the war that led to a currency crisis and restricted the ability of companies to access foreign currencies, but the first quarter of this year saw a net decline in the flow of foreign investment abroad to about $67.5 million, compared to $565 million in the same quarter last year.
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Which African countries are driving the venture capital ecosystem?

Eni has invested $7.7 billion in Egypt, while Apache has invested $1.4 billion and BP has invested $3.5 billion.

Which African countries are driving the venture capital ecosystem?

Saudi Arabia has also made significant investments in Africa, with a planned investment of $41 billion until 2030, targeting 54 African countries.

Title:

Content: Saudi Arabia provides 41 billion dollars to African countries in the form of investments and financing until 2030 - بوابة الشروق
Friday 10 Nov 2023 6: 57 PM Cairo Cairo 24 °
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Saudi Arabia to provide $41 billion to African countries in investments and financing until 2030
(dpa)
Published on: Friday 10 November 2023 - 5: 52 PM | Last updated on Friday 10 November 2023 - 5: 52 PM
The Crown Prince and Prime Minister of Saudi Arabia, Prince Mohammed bin Salman, announced that the Kingdom will provide 41 billion dollars to African countries in the form of investments, financing and development projects until 2030.
Prince Mohammed said in his speech at the Saudi-African summit held on Friday in Riyadh that the Kingdom is looking to inject new Saudi investments in various sectors in the continent with more than $25 billion, secure and finance $10 billion of exports and provide additional funding of $5 billion to Africa until 2030 to develop partnership relations with African countries and develop trade and integration fields.
The Crown Prince also announced the launch of the Custodian of the Two Holy Mosques Development Initiative in Africa by launching development projects and programs in the continent worth more than $1 billion over 10 years.
In his speech, the Crown Prince referred to the close relations with African countries and said that the Kingdom has provided more than $45 billion to support development and humanitarian projects in 54 African countries.
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What trends are emerging for African startups in 2022?

Which country is expected to stimulate economic growth and job creation in Nigeria through investment?

The investments by Saudi Arabia are focused on development and humanitarian purposes, with $25 billion allocated to various African sectors.

Which country is expected to stimulate economic growth and job creation in Nigeria through investment?

China has also been a major investor in Africa, with $182.4 million invested in Rwanda in 2022, and a total of $357.7 million invested in Rwanda in 2021.

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China and India dominate investment in Rwanda despite wooing Europe

Monday May 15 2023

The Chinese medical team donates a consignment of supplies to Rwanda on January 2022. Data shows China in 2021 and 2022 topped the number of registered foreign investments in Rwanda. PHOTO | XINHUA via AFP

By BERNA NAMATA

China and India remain leading investors in the Rwandan economy despite the country investing millions of dollars in investment and tourism promotion in Western Europe.

Figures by the Rwanda Development Board (RDB), the country’s investment and tourism promotion agency, show that in 2022, the country attracted investments worth $1.6 billion. Of this, $182.4 million or 11.2 percent represented in 49 projects came from China.

India came second with $151 million in investment portfolio or 9.2 percent, with 36 projects.

In 2021, China still topped the number of registered investments at $357.7 million or 9.5 percent of the $3.74 billion total investments registered at the time.

The second investor was Kenya, which had invested $92.6 million or 2.5 percent.

In 2022, Kenya registered investments worth $35.8 million, just 2.2 percent of the entire investment value.

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Also read: Ethiopia topples Uganda, Tanzania for Kenya investments abroad

Manufacturing, financial services and insurance activities accounted for 45.6 percent of total registered investments in 2022, and are expected to create 38.5 percent of jobs generated from investments, the report says.

It also shows that for the first time, local investors are leading private investment in the country, accounting for approximately $504.8 million or 33.1 percent of the total investment, with 123 projects.

A multimillion-dollar private investment company owned by the ruling Rwanda Patriotic Front (RPF), Crystal Ventures Ltd, is among leading local investors.

The EastAfrican has learned that last year the company invested in machinery for the expansion of the construction firm Construct Ltd.

“We are pleased that our efforts to attract transformative investments in various sectors – such as manufacturing, real estate, finance and entertainment – were successful, and the diversity of these investments indicates a healthy and dynamic econom,” Clare Akamanzi, the RDB chief executive, said in the annual report.

In 2021, Crystal Ventures Ltd was also among the leading investors with a key project – setting up a milk powder plant with the capacity to process 500,000 litres per day, according to the RDB 2021 report.

Wooing Europe

Although Asia remains a top investor in Rwanda, Kigali is focused on attracting investment and tourists from Europe.

And despite criticism, Rwanda has maintained its deals with football clubs are paying off, without giving definite figures linked to the sponsorship.

Read: AKAMANZI: Sportswashing? No. Rwandans benefit from the business of sport

Recently, President Paul Kagame reaffirmed that the deal with Arsenal Football Club, which plays in the English Premier League, is paying off.

“Imagine this season if we (Arsenal) become the champions, I will be rushing to the bank to collect some money. We are getting more, by a big factor,” he said responding to a question from a journalist during a press briefing onFebruary 27.

This week, RDB announced it had renewed its ‘Visit Rwanda’ partnership with French football club Paris Saint-Germain after three years to showcase the country as a top tourism and investment destination.

“There is more to the partnership between Visit Rwanda and Paris Saint-Germain than just promoting Rwanda as a destination. It aims to create synergies in culture, fashion, the arts and football development, which is very important to us.

Paris Saint-Germain provides us with an amazing platform to present the very best of Rwanda to millions of fans around the world,” Michaella Rugwizangoga, RDB’s chief tourism officer, said in a statement announcing the renewal of the partnership on May 10.

The amount paid for the deal has not been disclosed.

The deal came after a similar multi-millionone, initially estimated at $41.4 million, signed in 2018 with English football club Arsenal, which was also renewed in 2021 to run until 2025 at a cost of approximately $13.8 million a year, according to soccer website Football.London.

RDB figures show tourism generated $445 million in revenue, up from $164 million in 2021, representing an increase of 171.3 percent.

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Chinese companies have built $155 billion worth of projects in sub-Saharan Africa, with a focus on infrastructure development.

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China ‘winning lion’s share’ of construction projects in Africa, study finds

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China ‘winning lion’s share’ of construction projects in Africa, study finds

  • US and European firms won 85 per cent of infrastructure contracts back in 1990, according to Hinrich Foundation report
  • But that has changed since Beijing made a strategic pivot to the continent and launched the Belt and Road Initiative
Jevans Nyabiage
Published: 4:00pm, 13 Aug, 2023

Chinese companies have built multibillion-dollar projects across Africa, from railways and bridges to hydroelectric dams. Photo: Xinhua

In the 1990s, about eight out of 10 contracts to build infrastructure in Africa were won by Western companies.

That started to change when China made an aggressive push into the continent, with a “going out” strategy that encouraged Chinese companies to venture overseas in search of markets and raw materials.

By 2013, when Xi Jinping became China’s president, Western firms were running 37 per cent of African infrastructure projects versus 12 per cent for Chinese companies, according to a new report by the Hinrich Foundation, an Asia-based philanthropic organisation.

Now, the tables have turned. Chinese companies accounted for 31 per cent of African infrastructure contracts valued at US$50 million or more in 2022, compared with 12 per cent for Western firms, the study on Africa’s growing clout in global trade and geopolitics found.

Chinese companies have built multibillion-dollar projects across the continent, including ports, railways, highways, bridges and hydroelectric dams – fuelled by Beijing’s vast Belt and Road Initiative.

“This is a big change from 1990, when US and European companies won 85 per cent of African construction contracts,” according to the study conducted by Keith Rockwell, a senior research fellow and former World Trade Organization director.

Rockwell said that under the belt and road strategy, launched in 2013, China had funded mega projects worth billions of dollars such as railways in Kenya and Ethiopia and ports in Djibouti and Nigeria.

In 10 years, engagement through the initiative has exceeded US$1 trillion globally, according to estimates by the Green Finance and Development Centre at Fudan University in Shanghai.

Rockwell noted that China is also Africa’s largest trading partner, with US$250 billion in trade in 2021 compared with US$62 billion in US-Africa trade.

The study found that Chinese infrastructure projects in sub-Saharan Africa totalled US$155 billion over the past two years, and that such investments had given Beijing leverage over African governments. By contrast, total US foreign direct investment in Africa came to US$44.8 billion in 2021.

“With such close trade and business relations it’s no surprise that China is winning the lion’s share of infrastructure project contracts,” Rockwell said.

Aly-Khan Satchu, a sub-Saharan Africa geoeconomic analyst, said China had been more innovative in its financing and was “significantly speedier” in making its strategic pivot to the continent.

“Of course, there have been nuances in this pivot. In the early stage Africa’s balance sheet was emerging from a restructuring and debt forgiveness and therefore there was a significant amount of space and China’s lending reflected this in its ‘aggressive’ initial phase,” Satchu said.

However, Rockwell noted that China is encountering some headwinds in its dealings with Africa. He said projects including a railway in Kenya and a traffic lighting project in Ghana had been controversial and had generated negative public reaction.

He said belt and road lending had fallen by 55 per cent from 2021 to 2022 to US$7.5 billion while overall lending fell from US$28.4 billion in 2016 to US$1.9 billion in 2020. “Some of this is due to the difficulty some African countries have faced in meeting their debt obligations,” Rockwell added.

Still, he said China’s relations with Africa were “broad and deep” and likely to remain strong for many years.

According to the study, China is clearly ahead in the great power competition for political and economic relationships in Africa. During the Donald Trump era, the US turned its back on Africa, while relations between Europe and its former African colonies have deteriorated, and China “rushed to fill the void”.

That includes the exploration and extraction of critical metals such as cobalt and lithium – essential raw materials for making the rechargeable batteries that power electric vehicles and solar panels.

The study noted that Chinese companies have stolen a march on their US and EU rivals in converting metals to raw materials for batteries. Chinese companies are now sourcing lithium from Zimbabwe and Namibia while the Democratic Republic of Congo and Zambia are top sources for cobalt.

China’s share of global lithium refining capacity is 58 per cent and until similar facilities are operational in Europe, the US or Africa itself, China will be the main customer for Africa’s lithium, the study said, citing the International Energy Agency.

But it noted that Brussels and Washington are playing catch-up. To counter China’s belt and road scheme, the US and its Group of Seven partners last year pledged US$600 billion over five years to the Partnership for Global Infrastructure and Investment. Africa is likely to be the principal recipient of these funds.

The US has pledged to fund construction of the Lobito corridor railway line to transport minerals from the DRC and Zambia to the port on Angola’s Atlantic coast.

The European Union in 2021 also unveiled the Global Gateway, which aims to mobilise up to €300 billion (US$330 billion) in investments between 2021 and 2027 to counter Chinese investments in developing countries, including in Africa.

Satchu said China had an “unassailable lead” in Africa, with significant “assets” on the ground after more than two decades of engagement.

“Both the US and Europe need to come to the party in the context of the battle for minerals, which will power the new economy,” he added.

Jevans Nyabiage
Kenyan journalist Jevans Nyabiage is South China Morning Post's first Africa correspondent. Based in Nairobi, Jevans keeps an eye on China-Africa relations and also Chinese investments, ranging from infrastructure to energy and metal, on the continent.

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The China-Africa TEDA investment company has invested $5 billion in 8 projects in Egypt's Suez Canal zone, creating 7,000 job opportunities.

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Content: China-Africa TEDA Investment Co, the operator of China-Egypt Suez Economic and Trade Cooperation Zone (TEDA Suez) in the Suez Canal Economic Zone (SCZONE), is finalising eight projects representing investments worth more than $5 billion.

The projects range from chemicals to wind turbine blades, according to a press statement issued by the General Authority for the Suez Canal Economic Zone. The projects are as follows:

These projects are expected to provide approximately 7,000 job opportunities, the statement by the Authority noted.

(Writing by Eman Hamed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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

Which African countries are driving the venture capital ecosystem?

Which sectors are Chinese investments in Africa focusing on?

US companies such as Marriott International and General Electric are also investing in Africa, with a planned investment of $33 billion, focusing on construction, banking, and IT.

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?

The US "Power Africa" plan aims to double electricity coverage in sub-Saharan Africa, with $26 billion available for investment.

Which countries are actively investing in Africa besides China?

The European Union has also announced plans to invest $150 billion in Africa's infrastructure, as part of its Global Gateway initiative.

Title:

Content: EU Plans to Raise $150 Billion in Infrastructure Funding for Africa | Deutsche Welle Germany | DW | 11.02.2022
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EU plans to raise $150 billion in infrastructure funding for Africa
With the newly launched Global Gateway initiative, the EU hopes to inject $150 billion into the continent.
The aim of the plan is to expand the EU's international influence and compete with China.
European Commission President Ursula von der Leyen introduced the EU's 150 billion euro investment plan during his visit to Senegal.
In Dakar, Senegal, she said the EU is the largest and most credible partner of the African continent.
Von der Leyen said that the Africa-Europe project is the first regional initiative of the European Union (EU) since the launch of the Global Gateway initiative in December last year.
The European Union (EU) hopes to use the Global Gateway to expand Europe's international influence. Von der Leyen stressed that although the project is funded by the EU, it will be implemented in partnership.
Von der Leyen at the Global Gateway Initiative press conference on December 1, 2021.
Global portals for the world
Through the “Global Gateway ” initiative, the EU plans to provide a total of 300 billion euros in infrastructure to emerging and developing countries around the world over the next few years.
For this purpose, the EU will receive funding from a range of EU institutions and projects, including the European Investment Bank (EIB).
The proposed investment plans include the construction of climate-neutral liquid hydrogen energy facilities in Africa and a submarine data cable linking the European Union and South America.
In addition, the funds will be used to build roads, railways, Internet networks, health, education and scientific research.
For several years, China has been promoting the “Belt and Road ” project in Africa.
The picture shows the Zambian international airport built by China.
More details of Africa ’ s investment plans will be unveiled during the EU-Africa summit in Brussels next week. The Global Gateway will compete with China ’ s Belt and Road initiative.
In the past few years, China has launched related projects in many countries.
Critics pointed out that investors from China and Russia on the African continent often do not pay attention to issues such as environmental protection and human rights.
China has also been accused of dragging some African countries into debt traps with unrepayable loans.
(Reuters, DPA, Agence France-Presse)
© 2022 Deutsche Welle Copyright Notice: All content in this article is protected by copyright law and may not be used without a special license from Deutsche Welle.
Any misconduct will lead to recovery and criminal prosecution.
DW.COM

What trends are emerging for African startups in 2022?

Which countries are actively investing in Africa besides China?

The UK has been a significant investor in Africa, with British International Investment investing $60 billion in the continent, focusing on renewable power and digital infrastructure.

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?

Other major investors in Africa include France and the Netherlands, with $54 billion invested in the continent.

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Content: Chairman of the Board of Directors and Editors
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Mohamad Elbaz
Chairman of the Board of Directors and Editors
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Mohamad Elbaz
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?

African entities such as the Egyptian government and the Rwandan government have formed partnerships with foreign companies, such as Eni and China-Africa TEDA, to attract investments and promote economic development.

Which African countries are driving the venture capital ecosystem?

Which African countries are driving the venture capital ecosystem?

Which African countries are driving the venture capital ecosystem?

The energy and gas supply sector has been a major recipient of foreign investment, with projects worth $120 billion.

The investment trends in Africa are shifting towards renewable energy, with companies such as bp and Shell investing in LNG projects and solar energy.

Title:

Content: Global investment in upstream oil and gas is set to reach $570 billion in 2024, showing a 7% rise compared to 2023 expenditure. Of this, 33% is expected to be directed towards frontier fields, presenting a strategic opportunity for undeveloped oil and gas markets in Africa. With lack of investment representing one of the biggest challenges to project development across the continent, the African Energy Chamber (AEC) (www.EnergyChamber.org) will host a networking reception on July 11 in London – Europe’s financial capital. Taking place at the Four Seasons Hotel London at Park Lane from 17:00 to 21:00, the reception bridges the gap between European financiers and African energy projects, promoting synergies, deals and future collaborations.

Despite holding some of the largest untapped oil and gas resources worldwide, Africa is faced with an energy crisis, with 600 million people currently living without access to electricity and 900 million people without access to clean cooking solutions. The African Development Bank estimates that to address this crisis, the continent requires between $40 billion and $70 billion in annual investment. Presently, Africa receives on average $35 billion in global financing for fossil fuels and clean energy projects, with merely 5% of global energy investment directed towards the continent. This showcases a clear investment gap and a strategic opportunity for European funders and project developers.

With over 125 billion barrels of proven crude oil, 620 trillion cubic feet of natural gas and abundant opportunities in solar, wind and geothermal, Africa continues to attract investment from some of the world’s biggest players. The continent’s greenfield upstream spending, for example, is projected to reach $37 billion by 2025 and $50 billion by 2050, with companies eager to unlock the full potential of undeveloped oil and gas. Specifically, a strong slate of London-based oil and gas firms are driving a wave of project developments across the continent.

These include energy major bp, who is developing Senegal and Mauritania’s inaugural LNG project – the Greater Tortue Ahmeyim (GTA) facility – and Mozambique’s Coral Sul FLNG project. GTA is on track for first production in 2024 while bp delivered first gas from Coral Sul in 2022, marking the first LNG cargo for the country. Additionally, energy major Shell is making strides towards opening up the Orange Basin in Namibia. The company’s Graff-1 discovery in 2022 was play-opening and Shell has made an additional five discoveries since then. The company is investing 25% of its deepwater exploration budget in the country this year.

Additionally, independent hydrocarbon producer Perenco inaugurated the $50 million Batanga LPG plant in 2023 and is developing the $1 billion Cap Lopez LNG terminal in Gabon. The company is also investing in shallow-water and marginal assets across the continent, acquiring Eni’s core assets in the Republic of the Congo in June 2023 for $300 million. Oil and gas company Tullow Oil anticipated commercial oil production in Kenya in 2028 while transitional energy company Chariot oil and gas recently signed a gas commercialization agreement with Vivo Energy in Morocco. These developments – all led by London-based companies – represent just some of the many underway across the continent.

The AEC Reception builds on these deals to promote new investment in African energy. Taking place in London – both Europe’s financial capital and its biggest stock market – the reception is all about connecting companies to opportunities. The total value of companies listed on the London Stock Market reached $2.18 trillion in June 2024, highlighting a commercial and strategic opportunity for the reception and African energy projects.

The AEC London Reception takes place ahead of the continent’s largest energy event, the African Energy Week (AEW): Invest in African Energy conference, scheduled for November 4-8 in Cape Town. Under a mandate to make energy poverty history by 2030, the event unites global investors and technology providers with African energy projects, with discussions tailored around unlocking high returns and generating mutually beneficial opportunities. Participants at the AEC’s London Reception have the chance to gain exclusive insight into AEW: Invest in African Energy 2024 while engaging with a suite of African stakeholders.

This year’s AEW: Invest in African Energy will host the African Energy Finance Summit – a platform that galvanizes financial support for African energy projects, while promoting deal-signing and partnerships. Hosted in partnership with multilateral financial institution the African Export-Import Bank and global market intelligence firm S&P Global Commodity Insights, the summit brings capital to Africa with the aim of making energy poverty history by 2030.

Don’t miss the chance to be at the forefront of Africa’s energy transformation. Register for the AEC’s London Reception at https://apo-opa.co/3KUx0qt or contact register@aecweek.com.

AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.

Distributed by APO Group on behalf of African Energy Chamber.

Perenco has invested $50 million in a Batanga LPG plant in Gabon and is developing a $1 billion Cap Lopez LNG terminal in Gabon.

Tullow Oil anticipates commercial oil production in Kenya in 2028, while Chariot oil and gas has signed a gas commercialization agreement in Morocco.

CDC Group has invested $440 million in Egypt across 39 companies and plans to invest $700 million in Africa with DB World.

Title:

Content: Stock Exchange & Companies
$440 MILLION VOLUME OF INVESTMENTS OF CDC IN EGYPT
Aimed at 39 companies in a variety of sectors
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Sherine Shahdy, director of CDC Group, the UK ’ s Foundation for Impact Investment and Development Finance, said that the group ’ s total portfolio in Egypt currently stands at about $440 million for 39 companies.
She pointed out that CDC has started its investments in the local market since 2003, focusing on many sectors, the most important of which are health care, microfinance, industrial and commercial sectors, as well as logistics, in addition to projects related to supporting climate plans.
She pointed out that in terms of projects related to climate support, the group has pumped during the past periods investments worth $97 million in the project « Benban » solar energy.
She stressed that the Egyptian market is one of the most important investment destinations for the Group during the coming periods, whether in the field of health care or other.
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On the other hand, it revealed that the total assets of the group currently amount to about $9.3 billion, of which about $1.75 billion was injected during this year 2021 in the countries of Africa and Asia.
Sherine Shahdi: Group plans to pump $700 million in partnership with DB World
In a related context, Sherine Shahdi revealed that CDC Group plans to invest more than $700 million in the coming years as part of its recent partnership with DB World Group to support the commercial movement in the African continent, with the latter pumping about $1 billion in the same direction.
DP World Group and CDC announced on Tuesday the launch of a joint investment plan in logistics services in the African continent to develop some ports, with a total investment of more than $1.7 billion.
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Shahdi explained that the investment plan in the ports will primarily include the ports of Sokhna in Egypt, Dakar in Senegal, and Berbera in Somalia.
She added that the investment in Sokhna port and the targeted commercial expansion will increase the contribution of trade by 3% of Egypt ’ s GDP.
“The ongoing expansion of Sokhna port will provide more than 1.4 million indirect jobs in the coming years, with the labor-intensive and heavy industries sector to be one of the biggest beneficiaries, including construction, agricultural processing, glass and cement production, in addition to the automotive and consumer goods industry, ” she added.
DP World and CDC set up joint platform to invest in African market
The CDC Group is funded by the UK government and works to achieve the UN Sustainable Development Goals (SDGs), focusing its investments in Africa and South Asia.
The group has contributed significantly to the development of infrastructure partnerships in Africa, while it has investments in more than 1,000 companies in emerging economies with total assets of about $9.3 billion.
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What trends are emerging for African startups in 2022?

Which African countries are driving the venture capital ecosystem?

DP World and CDC have invested $1.7 billion in African logistics services, with investment locations including Sokhna in Egypt, Dakar in Senegal, and Berbera in Somalia.

Egypt is Africa's top investment destination, with the country acquiring 15% of Africa's total FDI in 2021.

Which African countries are driving the venture capital ecosystem?

Egypt had $5.122 billion FDI inflows in 2022, with clean energy and infrastructure being prominent sectors for FDI inflows.

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?

The country aims to increase FDI to $11.7 billion in 2023, with Gulf countries investing heavily in Egypt's market.

Which African countries are driving the venture capital ecosystem?

South Africa received $40.889 billion FDI inflows in 2022, making it one of the top recipients of FDI in Africa.

Mozambique and Nigeria also received significant FDI inflows in 2022, with $5.102 billion and $4.844 billion, respectively.

What trends are emerging for African startups in 2022?

Ethiopia received $4.259 billion FDI inflows in 2022, with the country's FDI inflows expected to continue growing in the coming years.

The majority of FDI in Africa went to clean energy projects in 2021, with energy and gas supply projects increasing to $120 billion.

Construction and extractive industries projects also saw significant investment, with project values rising to $24 billion and $21 billion, respectively.

European investors own the largest FDI in Africa, with the UK holding $65 billion in total FDI stock in Africa as of 2020.

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

Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

The UK's FDI in Africa is mainly in oil, gas, mining, and financial services, with $2.1 billion invested in oil and gas deals in 2022.

Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

Fintech revenues in Africa are expected to reach $30 billion by 2025, with seven of the 10 newly minted African unicorns in 2021 being fintechs.

British International Investment made a $150m investment in Kelix bio in 2020, and has committed to investing $60 billion in Africa over five years.

How much did BII invest in Kelix bio in 2020?

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?

The investment focus is on renewable power and digital infrastructure, with support for women-owned businesses and a focus on key markets like Ethiopia, Kenya, Nigeria, and Egypt.

MultiChoice Africa Accelerator Programme has expanded to eight countries, providing funding for emerging businesses in the technology sector.

Title:

Content: Multimillion-dollar boost for small business as more African countries join MultiChoice Africa Accelerator Programme

Johannesburg, Nov. 23, 2022 (GLOBE NEWSWIRE) — November 2022 – Following the success of the MultiChoice Africa Accelerator Programme, which secured $16 million (USD) of funding for six emerging businesses last year, the programme has been expanded to eight more countries across Africa.

Many more small businesses in Africa’s technology sector now have the chance to benefit from the 2023 programme, which provides the skills and opportunities needed to attract transformative business funding.

“We’re really excited to be expanding the MultiChoice Africa Accelerator Programme to more African countries,” said Calvo Mawela, MultiChoice Group CEO, announcing the launch. “It’s part of our long-term commitment to growing and multiplying Africa’s technology potential, which is critical to our future growth.”

The MultiChoice Africa Accelerator Programme, which kicked off during Global Entrepreneurship Week,  is aimed at established start-ups and small enterprises in specific technology sectors – healthtech, agritech, fintech, edutech, the circular economy and the creative industries.

“There is such incredible business talent across Africa,” said Mawela. “MultiChoice Africa Accelerator is an opportunity for investors and small enterprise to collaborate to multiply the impact of this talent and scale it across Africa.”

Having started in South Africa in 2021, the MultiChoice Africa Accelerator is expanding to Ivory Coast, Senegal, Nigeria, Ghana, Kenya, Zambia, Angola and Ethiopia. The initiative equips emerging entrepreneurs to secure funding and scale up their businesses, and also provides opportunities to pitch to international investors.

African Development Bank President Dr Akinwumi Adesina has previously noted that, “the private sector is Africa’s growth accelerator”, and several African nations have backed small-business development as part of their economic strategy. The MultiChoice Africa Accelerator dovetails with these development objectives.

The MultiChoice Africa Accelerator Programme is an initiative of the MultiChoice Innovation Fund, in collaboration with Dubai-based business incubator Companies Creating Change (C3), which gives entrepreneurs access to the tools, skills and financial support to grow their business. MultiChoice has also partnered with EOH, a tech services company who will bring their expertise to the table especially in terms of tech advisory, development sprint and technical support.

The first phase of the MultiChoice Africa Accelerator Programme sees public and private-sector partners in each country nominating businesses or entrepreneurs for the programme. From there, 29 of the start-ups embark on an intensive virtual training course. The initiative is aimed at established businesses that are already operating and looking to scale up by attracting further investment.

“Start-up founders get to learn everything from how to properly research your business sector and your market, to how to create a niche for your business,” says Boitumelo Monageng, of Swypa, one of last year’s finalists. “During the workshops we were encouraged to dig deeper and I realised that we have the potential to compete on a much larger scale.”

The virtual training course takes place over several weeks, teaching start-up owners media skills, how best to market their businesses to investors, how to create attractive business plans, and to know what investors are looking for.

Later, the entrepreneurs will come together at a finals event, where 11 start-ups will be selected for the final pitch phase. They will attend a dedicated C3 boot camp to learn how to shape their story for international investors, and to get “pitch ready” before their big presentations.

“We believe SMEs in the technology, sustainability and creative sectors will be fundamental to the next phase of Africa’s growth,” says Mawela. “The MultiChoice Africa Accelerator is geared to finding the most promising start-ups, and empowering them to play this critical role.”

Attachment

Elizabeth Ferreira
MultiChoice Group Ltd
0834825241
fourie_elizabeth@yahoo.com

GlobeNewswire Distribution ID 8702451

What trends are emerging for African startups in 2022?

Which sectors are Chinese investments in Africa focusing on?

The programme focuses on healthtech, agritech, fintech, edutech, and creative industries, and aims to support small business development in Africa.

Which sectors are Chinese investments in Africa focusing on?

The African Development Bank backs small-business development as an economic strategy, and the MultiChoice Africa Accelerator offers virtual

The African Development Bank backs small-business development as an economic strategy, and the MultiChoice Africa Accelerator offers virtual

The African Development Bank backs small-business development as an economic strategy, and the MultiChoice Africa Accelerator offers virtual