Africa has become an attractive destination for foreign investment.

The African Continental Free Trade Area (AfCFTA) aims to create a single market of 1.7 billion people by 2030.

China's FDI inflows to Africa have increased by 25% annually over the past 20 years.

The UK, France, and the US are top investors in Africa, with the UK leading at $60 billion.

The energy sector is a key area of investment in Africa, particularly in renewable energy projects.

Africa's foreign direct investment (FDI) reached a record $83 billion in 2021, with Morocco's FDI rising 52% to $2.2 billion.

Egypt received $11 billion in FDI inflows in 2022, double the previous year.

The country has issued a $750 million green bond and signed agreements for $85 billion in renewable energy investments with companies like Scatec, Masdar, and Total.

South Africa received $40.9 billion in FDI in 2021.

The African Development Bank has committed $44 billion to African infrastructure development and proposed eight solutions to address the finance gap.

The African Export-Import Bank has facilitated Africa's investment climate and strengthened ties with organizations like UNIDO and China Export Bank.

Major foreign investors in Africa include China's State Grid, the UK's British International Investment, and the US's General Electric.

The African Development Bank, African Export-Import Bank, and Egyptian government have formed partnerships with foreign companies.

North Africa, West Africa, and East Africa are top destinations for foreign investment.

Key areas of investment include energy, manufacturing, and infrastructure.

Africa is expected to continue attracting significant foreign investment due to initiatives like the AfCFTA.

The continent's private wealth is expected to reach $3 trillion by 2031.

Africa has become an attractive destination for foreign investment.

Title:

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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The African Continental Free Trade Area (AfCFTA) aims to create a single market of 1.7 billion people by 2030.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ends/////

Issued by Brand South Africa

Notes to the Editor

Contact: Phindi Mathebula

Email:phindilem@brandsouthafrica.com

Mobile number: +27 64 890 7414

About Brand South Africa

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

This electronic communication and the attached file(s) are subject to a disclaimer which can be viewed at https://www.brandsouthafrica.com/terms-and-conditions . If you are unable to view the disclaimer, please email info@brandsouthafrica.com for a copy.

China's FDI inflows to Africa have increased by 25% annually over the past 20 years.

Title:

Content: People 's Network > > International
Foreign Ministry: The so-called traceability report of the United States is a political report, a dumping report, and a false report
August 30, 2021 20: 06 | Source: People's Daily Online - International Channel
Small number
BEIJING, Aug. 30 (Xinhua) -- According to the website of the Ministry of Foreign Affairs, Foreign Ministry spokesman Wang Wenbin presided over a regular press conference on the 30th.
The press conference is as follows:
Last week, the China-Africa Non-Governmental Chamber of Commerce held a press conference on the "Report on Chinese Enterprises' Investment in Africa", which showed the participation of Chinese enterprises in Africa's economic development.
How does the Ministry of Foreign Affairs view the role of Chinese enterprises in Africa's economic and social development?
Wang Wenbin: Last week, the China-Africa Non-Governmental Chamber of Commerce held a very successful launch of the "China Enterprises Investment in Africa Report", people from all walks of life gave positive comments, and it is generally believed that Chinese enterprises invest in Africa for mutual benefit and win-win, in line with Africa's development needs, and high-quality China-Africa investment cooperation can be expected in the future.
There are several characteristics in the process of Chinese enterprises investing in Africa and helping Africa's economic and social development: First, China's investment in Africa is stable and strong.
Over the past 20 years, China's FDI inflows to Africa have increased by more than 25 percent annually.
Under the situation of the epidemic, China ’ s investment in Africa increased from 2.71 billion US dollars in 2019 to 2.96 billion US dollars in 2020. Chinese enterprises “rooted in Africa ”,“ cultivated Africa ” and “helped Africa ”, and used real industrial cooperation to promote the industrialization process in Africa and create jobs for Africa.
Second, the development advantages of China and Africa are highly complementary.
China has the advantages of capital, technology and development experience, and China-Africa cooperation has greatly improved the efficiency of resource allocation.
Labour-intensive manufacturing and park construction are the traditional advantages of Chinese enterprises to invest in Africa, and new fields such as high-end technology manufacturing, medical and pharmaceutical, digital economy and aviation industry are also becoming new hot spots for Chinese investment in Africa.
Third, China-Africa investment cooperation is mutually beneficial and win-win.
China is striving to build a new development pattern based on the domestic macro-cycle and the domestic and international double cycles mutually promote each other.
Chinese enterprises' investment in Africa is conducive to unblocking the global industrial chain and promoting two-way exports.
While realizing their own development, Chinese enterprises have made outstanding contributions to social stability and economic prosperity in African countries by actively carrying out technology transfer, strengthening local procurement and employing local staff.
The Chinese government has always encouraged enterprises to actively cooperate with Africa's development strategy, integrate into the local society, take the initiative to practice social responsibility, give back to the local people, and contribute to the independent and sustainable development of African countries.
I believe that the prospects for China-Africa investment cooperation are bright and promising, and that the quality and quantity will be raised in the future, so as to push China-Africa pragmatic cooperation to a new level.
Agence France-Presse: Can you confirm the news that US President's special envoy on climate issues Kerry will visit China in September?
If the information is true, can you provide a specific date and what topics will he discuss with the Chinese side?
WANG Wenbin: Regarding the question you mentioned, I have no information to announce at this time.
The conference on the Biological Weapons Convention (BWC) will be held today.
In 2001, the United States withdrew from the agreed multilateral verification mechanism for biological weapons, and has so far opposed the resumption of negotiations.
What is China's comment on this?
Wang Wenbin: As you mentioned, the conference on the Biological Weapons Convention (BWC) will begin today.
China has always firmly upheld the aims and objectives of the Biological Weapons Convention (BWC).
Like most countries, China stands for the establishment of a multilateral verification mechanism within the framework of the convention, which is the most effective way to ensure compliance and build mutual trust.
At this meeting, China will again call for the resumption of negotiations on the verification mechanism, and I believe that the vast majority of countries will also put forward the same proposition.
In fact, the United States is the world ’ s most biologically militarized and least transparent country.
If the United States had not withdrawn from the agreed negotiation process in 2001, and had so far opposed the resumption of negotiations, this mechanism would have been established long ago, and all countries' biological activities, including laboratory activities, could have been placed under multilateral supervision and verification.
It is worth noting that the United States has repeatedly advocated the investigation of Chinese laboratories on the issue of the origin of the new coronavirus, which is contrary to the position that the United States has maintained so far on the issue of biological laboratory verification.
Since the United States has previously claimed that activities in the biological field are technically unverifiable, the call for an investigation of the Wuhan laboratory is pure political blackmail.
On the other hand, if the United States believes that it is feasible to investigate the Wuhan laboratory, there is no reason to oppose the establishment of a multilateral biological verification mechanism, let alone refuse to open the Fort Detrick base and more than 200 biological laboratories around the world to be investigated by the international community.
"This contradiction shows that the so-called openness and transparency claimed by the United States is nothing more than a lie," he said.
It is the United States itself that is least open and least transparent about tracing and establishing a multilateral verification mechanism for biological weapons.
Chinese State Councilor and Foreign Minister Wang Yi said in a telephone conversation with US Secretary of State Colin Blinken yesterday that China firmly opposes the investigation report on the traceability issue issued by the US intelligence agencies.
What is China's comment on this?
Wang Wenbin: Chinese Vice Foreign Minister Ma Zhaoxu and Vice Minister Zeng Yixin of the State Health and Health Commission have respectively expounded China's position on this issue through speeches and interviews.
The so-called traceability report issued by the US intelligence agencies is an anti-science political report, a dumping report under the guise of traceability and shirking the responsibility of the United States for its own failure to fight the epidemic, and a false report that fabricates excuses and splashes dirty water on China.
The report is another example of how the United States deceived and misled the international community.
The US side should explain clearly why it has resorted to using intelligence agencies to trace the source instead of relying on scientists.
Is the use of intelligence agencies to trace the source, in the end, to find the truth or to fabricate the "truth"?
The United States should also explain clearly why it has repeatedly entangled the theory of laboratory leakage without scientific basis. Even if all the intelligence forces can not find evidence, the United States still does not give up the theory of laboratory leakage.
This is not political manipulation, what is it?
The United States should also explain why the United States has the most advanced medical equipment and technology in the world, but it is the country with the largest number of infections and deaths in the world.
Since the outbreak of the epidemic, the United States has withdrawn from the WHO at a critical moment in the fight against the epidemic, banned the export of vaccines at a time when the world is in urgent need of vaccines, and hype the theory of laboratory leakage after China and the WHO successfully conducted the first stage of traceability research.
What the United States has done has not only led to the complete failure of the United States in its own fight against the epidemic and caused the American people to pay a painful price, but also seriously poisoned the atmosphere of international cooperation in tracing the source, which has increasingly deviated from the correct direction.
The United States has become the most destructive factor of international cooperation against the epidemic and the biggest obstacle to scientific traceability.
People cannot help but ask: Is the life of the American people important, or is the political self-interest of the politicians important?
Is the health of the people of the world important, or is the geopolitical considerations of the United States important?
When will the United States continue to politicize the fight against the epidemic and trace its origins?
In the face of the virus, the fate of all countries is related to the common and solidarity.
To fight the epidemic, we need to adhere to science, unity and cooperation.
The Chinese side has always adhered to cooperation in the fight against the epidemic and traced the source scientifically, always opposed the erroneous practice of politicizing the fight against the epidemic and tracing the source, and has always been committed to promoting international cooperation in fighting the epidemic and working with other countries to overcome the epidemic at an early date.
We urge the US side to cherish life and respect science, stop playing tricks of dumping blame under the guise of traceability, and return to the track of cooperation and scientific traceability as soon as possible.
CCTV reporter: It is reported that Christopher Ford, former assistant secretary of state of the US State Department, has published an open letter, exposing the process of "laboratory leakage theory" concocted by a small group of people in the US State Department.
What is the spokesman's comment on this?
WANG WENBIN: I have noticed the relevant reports.
The open letter, which was issued by former Assistant Secretary of State Ford, is another powerful proof that some US politicians have turned their backs on science, concocted lies and smeared China on the issue of traceability.
According to Ford ’ s open letter published in June, from December 2020 to early January 2021, at the behest of former US Secretary of State Mike Pompeo, Yu Maochun, the US Department of State ’ s Office of Policy Planning, directed Deputy Assistant Secretary of State Thomas Dinano and advisor David Asher to continue to preach to the departments of the US State Department, bypassing the expert assessment of biological science and biological weapons. The new coronavirus is a biological weapon that the Chinese government has deliberately released. ”
After Ford emailed the two men several times about the need to organize scientists to conduct a serious evaluation, AVC convened an expert meeting in January.
Participating experts pointed out key errors in the relevant documents at the meeting site.
Ford later emailed a number of senior State Department officials to inform the meeting, pointing out that there are major problems with the AVC's judgment.
Ford speculated that the US State Department may have made no mention of the "biological weapon theory" in the "Fact Sheet: Activities of the Wuhan Virus Research Institute" published on January 15 this year, and instead put forward the speculative claim that the new coronavirus may have originated from an accidental leak in the laboratory.
It can be seen that some US politicians have completely ignored the scientific basis and the factual basis, and completely turned the origin of the virus into a political manipulation.
Their real purpose is to throw dirty water at China by all means. If the "biological weapons theory" does not work, they will resort to the "laboratory leakage theory" instead of the "laboratory leakage theory", which has been seen by more and more people of insight and will surely meet with more and more strong opposition from the international community.
French President Emmanuel Macron has said that France, Britain and Germany will propose the establishment of a safe zone in Kabul, where Afghans at risk can stay until they are evacuated from Afghanistan.
Does China support the entry of peacekeeping troops into Afghanistan to help establish a safe zone?
Wang Wenbin: I have taken note of relevant reports and reports that the Afghan Taliban have rejected the proposal to establish a safe zone.
China believes that the international community should respect the sovereignty, independence, territorial integrity and will of the Afghan people.
If the Security Council and the international community take any action, it should help ease the tension and help the Afghan situation to transition smoothly.
According to reports, the US military in Okinawa recently discharged sewage containing organic fluoride into sewers.
Japan lodged a strong protest with the United States, demanding that the US troops stop their emissions.
What is China's comment on this?
Wang Wenbin: It is also the discharge of sewage, and Japan's attitude toward the discharge of sewage by the US military in Japan is very different from that of the discharge of nuclear contaminated water by its own government.
It seems that Japan only attaches importance to the protection of its own environment and ignores the protection of the global marine ecological environment.
The Japanese side has the right to oppose the discharge of sewage by the US troops stationed in Japan, and it has the responsibility to respond to the concerns of the international community, especially its neighboring countries, and not to initiate the discharge of nuclear contaminated water into the sea without authorization until full consultation and agreement has been reached with all relevant stakeholders and international institutions.
In the end, self-serving practices on environmental protection will only harm others.
China International Television reporter: It is reported that three Chinese students were checked by the United States when they entered the United States at the Houston airport recently, and were subsequently found to be likely to endanger the national security of the United States.
Is the Ministry of Foreign Affairs aware of this?
Wang Wenbin: On August 15, when three Chinese students entered the United States with legal visas at the airport in Houston, the United States investigated and sent back to China, on the grounds that the three were suspected of having military backgrounds because they were funded by the Chinese government or because they found photos of military training in their personal mobile phones.
The Chinese side is strongly dissatisfied with and firmly opposed to this, and has made solemn representations to the US side on this issue.
The United States has used the pretext of catching the wind and catching the shadows and even being absurd to repatriate Chinese students, seriously harming the legitimate rights and interests of Chinese students studying in the United States, and seriously undermining normal cultural exchanges and educational cooperation between China and the United States.
This discriminatory practice against foreign students from certain countries completely runs counter to the US self-proclaimed concept of openness and freedom and its attitude of "welcoming Chinese students," and runs counter to the trend of the times for international personnel exchanges.
The Chinese side urges the US side to correct its mistakes, stop using various pretexts to restrict and suppress Chinese students for no reason, and stop its words and deeds that obstruct the cultural exchanges between China and the United States.
China will continue to support Chinese students studying abroad in safeguarding their legitimate rights and interests in accordance with the law.
A report by the International Atomic Energy Agency (IAEA) said that the Democratic People's Republic of Korea (DPRK) is showing signs of restarting its Yongbyon nuclear reactor.
What is China's comment on this?
Wang Wenbin: China's position on the Korean Peninsula issue is consistent and clear.
It is hoped that the parties concerned will adhere to the direction of political settlement of the Korean Peninsula issue and find an effective solution to each other's concerns in a balanced manner in accordance with the "two-track parallel" approach and the principle of proceeding in stages and synchronously.
Kyodo News Agency: On the issue of safe areas in Afghanistan, China's position is that it does not support France's proposal to establish safe areas.
Wang Wenbin: I would like to reiterate China's position on relevant issues.
We have always believed that the international community should respect the sovereign independence, territorial integrity and the will of the people of Afghanistan.
Any action taken by the Security Council and the international community should help ease the tension and facilitate a smooth transition of the situation in Afghanistan.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Jacques Rogge, former president of the International Olympic Committee (IOC), has died at the age of 79.
What is China's comment on this?
President Rogge is an outstanding leader of the international Olympic movement and an old friend of the Chinese people.
He made outstanding contributions to promoting the development of the Olympic Movement, deepening the friendly cooperation between the IOC and China, and successfully hosting the Beijing 2008 Olympic Games.
We express our deep condolences on his tragic death and extend our sincere condolences to his family.
(Editor: Xu Xiangli, Chang Hong)
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The UK, France, and the US are top investors in Africa, with the UK leading at $60 billion.

Title:

Content: Chairman of the Board of Directors and Editors
I'm sorry.
Mohamad Elbaz
Chairman of the Board of Directors and Editors
I'm sorry.
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).

Which European countries lead investment in Africa?

The energy sector is a key area of investment in Africa, particularly in renewable energy projects.

Title:

Content: Centurion Law Group Navigates Legal, Regulatory And Tax Frameworks At African Energy Week (AEW) 2023

(MENAFN- African Press Organization)

A Technical Track hosted by pan-African legal and business advisory group, Centurion Law Group, held during the 2023 edition of African Energy Week (AEW) ( ) – taking place in Cape Town from 16-20 October – explored the legal, regulatory, and tax frameworks throughout Africa.

The technical track kicked off with opening remarks by Centurion Law Group Managing Director and Partner, Zion Adeoye, who moderated the session and spoke on Africa's position as one of the world's most attractive destinations for investment and how legal and regulatory frameworks are being put in place to advance local content development in the continent's energy sector.

“Africa remains one of the most attractive destinations for investment,” Adeoye stated, adding,“It is very clear that for the next two to three decades, oil and gas development will be very active. In Africa, local content manifests in several ways – shareholding in the company and utilizing local manpower. In the extractives industry, investors always have the problem of balancing the best hands to work on their projects and adhering to local content laws in terms of getting the right content barriers across the industry.”

Following the presentation, a panel featuring the participation of international legal representatives from Mauritius, South Africa, Equatorial Guinea, Guinea, Russia, South Sudan, Ghana, and Nigeria explored the regulatory and legal frameworks throughout the continent and abroad.

“In Mauritius, we allow investors to engage in transactions more easily in Africa,” stated Keseena Chengadu, Head of Investment at Centurion Law Group, adding,“It's good to use us as a hub when internationals want to invest in Africa. We offer assistance to internationals with engaging in transactions, which can be very challenging.”

“South Africa is comparatively significantly industrialized, and it results in a few advantages for potential investors,” stated Gari Matarirano, Energy and Infrastructure Attorney at Centurion Law Group, when speaking on the southern African country, adding,“First off, the reliability of professional service firms, the tax system, is quite sophisticated with a strong source of funding through the financial system.”

“In Ghana, we have a robust regulatory framework,” stated Yorm Ama Abledu, Senior International Attorney at Centurion Law Group, adding,“As lawyers, we are able to guide clients and allow them to speak with the right authorities to deal with so that they are compliant with the law.”

The speakers spoke on local content development laws in Africa, highlighting the benefits and challenges related to investing in the continent while adhering to specific laws that could require as much as between 25% and 40% local participation.

“The markets are not very saturated, but the population is constantly growing, so it's a nice place to invest. But the fear of an investor is that they have to give up an average localization percentage of 25%,” stated Alexey Khromov, Law Intern at Centurion Law Group, adding however that,“The Government should think in the best interest of the communities, but also think about how to make your country more attractive as an investment destination.”

“In South Sudan, the country has given opportunities for foreign investors in terms of employment, but our investment promotion and requirement laws required 80% national workers in any company engaging in the country,” stated Rachel Tanda, Attorney at Centurion Law Group.

Additionally, Tamara Jombai, Attorney at Centurion Law Group touched on the individual requirements for companies seeking to participate in African markets, stating that,“When you are coming into a country, you need to decide on the size of the company and the kind of project you will be doing, which will determine what you will do.”

Furthermore, it was noted during the panel discussion that African countries feature diverse and robust taxation agreements, with Mauritius boasting 46 double taxation agreements across the world, which serves to help entities do business throughout the continent while using Mauritius as a hub. Meanwhile, the determination of doing business in South Africa is made in accordance with common law principles, wherein a foreign company engaging in the southern African country is subject to codified rules for certain types of income such as dividends, royalties, and interest.

Speaking on South Sudan's tax regulations, Grace Yella, Director for the Economic and Monetary Community of Central Africa at Centurion Law Group stated that,“There is a wide range of options for investors to settle business in the East African region. Each country has particularities when it comes to tax. The similarity is they opt for each investor to have the possibility to have their own declaration – they choose what to pay as tax. The authorities then have to carry out investigations to confirm that what has been submitted correlates to your commitments.”

The panel closed off by noting that Africa is diverse in its legislation and regulatory requirements, highlighting that international investors seeking to do business in the continent are subject to a variety of frameworks. With a burgeoning energy sector and fast-growing population, the panelists noted that Africa's growing industries and economies will continue to serve as a promising investment destination for international firms.

Under a mandate to make energy poverty history by 2030, AEW 2023 kicks off its strategic program on 17 October, and will unite African energy policymakers and stakeholders with global investors to discuss and maximize opportunities within the continent's entire energy sector.

Distributed by APO Group on behalf of African Energy Week (AEW).
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Africa's foreign direct investment (FDI) reached a record $83 billion in 2021, with Morocco's FDI rising 52% to $2.2 billion.

Title:

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.

Egypt received $11 billion in FDI inflows in 2022, double the previous year.

Title:

Content: The UAE is the most attractive Arab country for foreign investment
06-07-2023
The UAE is the most attractive Arab country for foreign investment
The UAE ranked first as the most attractive Arab country for foreign direct investment inflows in 2022 with a value of $22.7 billion, an increase of 10% compared to 2021, according to the United Nations Organization for Trade and Development (UNCTAD).
Egypt came in second with inflows of $11.4 billion, up 123% year-on-year, and Saudi Arabia ranked third with inflows of $7.9 billion, down 59% compared to 2021.
In comparison year 2021, Saudi Arabia saw Aramco sell 49% of Aramco ’ s pipeline assets for $12.4 billion.

Which African countries are driving the venture capital ecosystem?

The country has issued a $750 million green bond and signed agreements for $85 billion in renewable energy investments with companies like Scatec, Masdar, and Total.

Title:

Content: The government: 40% of public investments in the budget « green » (Infographic)
Safiya Hamdi
1: 10 PM, Mon, 21 Nov 22
The Information Center of the Council of Ministers published a report that included infographics on the efforts of the State to expand the implementation of green projects to achieve sustainable economic development, in light of the interest of the international community to face the crisis of climate change.
With the escalation of crises, increasing pressures on the ecosystem and the growing global trend towards a more environmentally friendly economy, the green economy is gaining international momentum day after day, and Egypt has adopted a proactive approach to balance economic growth with the sustainability of natural and environmental resources.
Through the adoption of policies, plans and initiatives that raise the efficiency of the use of resources, the implementation of many environmentally friendly projects, the use of new technological methods in the fields of renewable and clean energies, in addition to reducing the environmental impact of traditional energy sources, and the expansion of sustainable transport projects.
The Egyptian state affirmed its commitment to activate international commitments and agreements on climate change mitigation, and its tireless efforts to unite the world ’ s efforts during the Climate Summit to turn commitments and agreements into the path of implementation, and to formulate a common international vision and a clear road map through which to deal with the effects of climate change and its repercussions, especially on the most affected countries.
The report focused on greening the country ’ s investment plan, pointing out that green projects are projects aimed at enhancing resource efficiency, reducing carbon emissions, waste and pollution, preventing biodiversity loss, and addressing the definition of green bonds, explaining that they aim to provide financing for environmentally friendly projects, reduce the cost of financing on government papers, and encourage clean investments in the region.
On the issuance of green bonds, the Cabinet Media Center said during the report that Egypt is the first country in the Middle East and North Africa region to issue government green bonds on international markets, pointing at the same time to Egypt ’ s accession to the “GB ” index.
Morgan Environment and Governance (MEGG) increased by 1.18%, based on a $750 million green bond offering in October 2020.
The report pointed out that the green public investments targeted in the investment plan for 2022 / 2023 amounted to 40% of the total public investments, representing 410 billion pounds to be directed to several sectors, most notably 259 billion pounds for clean transport, 38 billion pounds for sustainable sanitation, 25 billion pounds for clean energy, 22 billion pounds for clean drinking water, 18.5 billion pounds for improving the environment, 14 billion pounds for sustainable irrigation, and 11 billion pounds for sustainable agriculture.
In terms of green fuel projects, the report pointed out that 16 memorandums of understanding have been signed for the production of green ammonia and green hydrogen in the Suez Canal Economic Zone, of which 9 have been converted into actual contracts.
In renewable energy projects, he pointed to the Benban Solar Complex, which has a total investment of $2 billion, with a total production capacity of 1465 MW, as well as the generation of electricity with pumping and storage technology “Ataqa ” (planned implementation), with a total investment of $2.7 billion, and a production capacity of 2400 MW.
The projects also include the Jebel El-Zeit plant to produce electricity from wind energy, at a cost of 12 billion pounds, with a total production capacity of 580 megawatts, while the wind power plant in Suez is being implemented on a contract worth 4.3 billion pounds, with a total production capacity of 250 megawatts.
On the most prominent clean transport projects, the project includes the Monorail Administrative Capital and 6 October with a total cost of 2.7 billion euros, and will benefit from Monorail, the capital of Idria 600 thousand passengers per day, and the Monorail 6 October will benefit 650 thousand passengers per day.
The clean transport projects also include the electric express train project with a total cost of 519.5 billion pounds, the length of the train is about 2000 km and consists of 3 lines, in addition to the light electric train project, which costs 44.9 billion pounds, and will benefit one million passengers daily.
The report pointed out that the number of cars converted to work with natural gas increased by 126.5%, reaching 472,000 cars at the end of October 2022, compared to 208.4 thousand cars at the end of October 2014, and that 2,300 buses were contracted during the eight years at the Public Transport Authority in Cairo and Alexandria to work with natural gas at a cost of 1.4 billion pounds.
As for the most prominent projects to improve the agriculture and irrigation sectors, he pointed out that 320 agricultural projects have been implemented in eight years with more than 42 billion pounds in the fields of ensuring sustainable agriculture, combating desertification and reducing the effects of climate change.
The completion of the rehabilitation and lining of 6271.6 km of canals as part of the national project for the rehabilitation and lining of canals, in addition to the completion of the modernization of irrigation systems with 1.02 million acres of new land by the end of June 2021 as a first phase within the modern irrigation system project.
The report also touched on the most prominent sustainable sanitation and desalination projects, which include the water treatment plant of the Sea of Cow, which has an investment cost of $1 billion, with a total production capacity of 5.6 million m3 per day, as well as the investment cost of the wastewater treatment plant in the Jabal al-Asfar area of LE7.8 billion, and the total expansion capacity of one million m3 per day to reach 3.5 million m3 per day by the end of 2023.
The investment cost of the seawater desalination plant in Galala city is 150 million dollars, with a total production capacity of 150 thousand m3 per day.
The report reviewed the most prominent environmental improvement projects, including pollution reduction projects during the eight years, where 280 million tons of daily and historical waste were lifted at a cost of 29.5 billion pounds, in addition to signing contracts to operate the new waste system in five governorates at a cost of 3 billion pounds.
The projects also include two contracts for the establishment and development of treatment and recycling plants for municipal waste and sanitary landfills and the lifting of accumulations in the cleaning system at a cost of 4.2 billion pounds, in addition to the project of managing the solid waste component to control air pollution in Greater Cairo, which cost 126 million dollars, and the purchase or upgrading of 5000 cleaning equipment.
The report touched on the presidential initiative of afforestation “100 million trees ”, where LE3 billion will be allocated to the initiative within 7 years, and the Ministry of Local Development contributes to the planting of 80 million trees, with the Ministry of Environment and the New Urban Communities Authority completing the planting of 20 million trees.
The main objectives of the initiative are to double the current per capita share of green spaces in Egypt, which is estimated at 1.2 m2 / person, and to reduce greenhouse gas emissions by 61.2 million tons annually, equivalent to 20% of Egypt ’ s current annual total emissions.
He referred to the fourth generation cities, pointing out that they are smart green cities with a per capita green area between 10 and 14 square meters, most notably the new administrative capital, New Alamein and New Mansoura.
With regard to foreign investments in the field of renewable energy, he pointed out that nine framework agreements have been signed, about $85 billion, which will provide about 275 thousand direct and indirect jobs, and aim to reduce carbon emissions by 39 million tons annually.
He explained that these framework agreements were concluded with a number of international companies and alliances, including the Norwegian company “Skatek ” and the launch of the first phase of the project,“ EMEA Power ” UAE, Masdar UAE, the British company “Globalic ”, Saudi Alfanar Company, the French alliance“ Total ” and “Inara Capital ” Egypt, and“ Renew Power ” India in cooperation with the Swedish Foundation, as well as “FFI ” Fortescue Futtscue Australia ’ s ure Industries, as well as the alliance of Egypt ’ s Zero West and France ’ s EDF Renewables.
Regarding foreign investments in green projects, they included the signing of a memorandum of understanding between Al Suwaidi Industrial Development Company and BASF German Company to establish a green logistics center in “Sokhna 360 ”, and signed partnership agreements and letters of intent worth $10 billion in green projects, at the national platform for green projects“ Novi ” and “Novi + ”
And also.
A $500 million package was presented to finance and facilitate Egypt ’ s transition to clean energy and reduce emissions in the energy sector by 10%, in cooperation with the United States, the European Union, and Germany.
The report added that logistic projects have been contracted, including the project of extending the container handling terminal as a second terminal (2) at East Port Said port with investments of $500 million, as well as a multi-purpose terminal project at East Port Said port in partnership with the alliance “Sky Investment and Reliance Logistics ” with cumulative investments of about $65 million.
Regarding the African initiatives launched by Egypt, he pointed out that they include the “Decent Life for Africa Resilient to Climate Change ” initiative, the“ Friends of Greening National Investment Plans in Africa and Developing Countries ” initiative, as well as the “For a Fair Energy Transition in Africa ” initiative to secure electricity access to more than 300 million Africans, the African Women and Climate Change Adaptation Initiative, and the“ Global Waste 50 by 2050 ” initiative to address the waste management crisis in Africa.
The report alluded to the launch of the first voluntary African market for the issuance and circulation of carbon certificates to enhance the capabilities of the African continent in achieving the climate targets according to international standards, and the launch of the first Egyptian fund to invest in projects that issue carbon certificates “EGY COP ” with a licensed capital of up to one billion pounds.
On the global initiatives launched by Egypt, the President of the Republic launched the “World Renewable Hydrogen Forum ” in partnership with Belgium and a number of international partners, as well as participating in the launch of the global platform to address climate change to support 500 million people and mobilize one billion Swiss francs over five years.
In addition to launching the Gender Equality and Climate Action Accelerator in cooperation with the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB) and the French Development Agency (AFD), and the “Solutions from Nature ” initiative, developed countries have allocated funding packages worth $100 million.
The report focused on the most prominent final recommendations of the summit, including the establishment of a “loss and damage ” fund to help developing countries affected by climate disasters, in addition to the adoption of a“ green climate ” fund.
The United Nations Environment Programme (UNEP) pointed to the adoption of a strategy based on many principles and objectives of the green economy, considering Egypt a leading country in the field of green transformation of UNEP.
He pointed out that Egypt issued the first green bonds to the private sector with the support of the Commercial International Bank to provide capital for development projects that benefit the environment, and that these efforts come amid Egypt's efforts to mobilize adequate financing to face climate change.
In addition to the IMF ’ s vision that due to its losses due to the effects of climate change, Egypt recently launched its national climate change strategy, issued the region ’ s first green bond to finance clean transport and sustainable water management projects, and coordinated global action on climate change adaptation and mitigation as host of COP27.
The EBRD values Egypt ’ s renewable energy projects, stressing that they are fast growing and proud, pointing out that they have great potential to accelerate the transformation of the green economy.
Finally, he noted Fitch ’ s assertion that electricity exports and green hydrogen projects will drive the long-term growth of Egypt ’ s energy sector.
Safiya Hamdi
1: 10 PM, Mon, 21 Nov 22

South Africa received $40.9 billion in FDI 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.

The African Development Bank has committed $44 billion to African infrastructure development and proposed eight solutions to address the finance gap.

Title:

Content: AfDB commited $44bn to infrastructure development ― Adesina

The African Development Bank (AfDB), the premier financier of infrastructure in Africa, has committed more than $44 billion to infrastructure across the continent in the last six years.

The funding covers such critical areas as transport, energy, water, and sanitation, but “despite the collective efforts, Africa is still faced with an infrastructure financing gap of $68 to $108 billion annually”.

This was disclosed by the African Development Bank Group President Akinwumi Adesina at the high-level virtual roundtable event to discuss scaling up of infrastructure financing, organised in the context of President Biden’s Building Back a Better World plan, which was moderated by US Assistant Secretary for International Trade and Development Alexia Latortue.

Speaking at the virtual roundtable, Adesina laid out steps for a collective global path on infrastructure financing and commended Secretary Yellen and the Biden Administration for mobilising development resources to expand infrastructure financing, which he said was critical for Africa and other parts of the developing world.

Adesina proposed eight solutions to bridge Africa’s infrastructure finance gap through “Project preparation, mobilising institutional investors, improving public financing for infrastructure, attracting the private sector, mobilising financing for green infrastructure, dealing with risk, stretching the balance sheet of multilateral development banks, and local currency for infrastructure financing”.

Project preparation facilities, Adesina said are critical to developing bankable infrastructure projects, given that one of the major challenges in infrastructure projects was moving commercially viable projects to financial close.

According to him, the NEPAD Infrastructure Project Preparation Facility, the special fund established to promote regional integration and support African countries in preparing quality, bankable projects to attract investments from both the public and private sector, had so far catalysed $25 billion dollars in downstream investments for integrating infrastructure.

Adesina explained that mobilising institutional investors, including pension funds, sovereign wealth funds and insurance companies held enough resources to scale up infrastructure financing from billions to trillions of dollars.

He said collectively, these institutions, with commercial banks, held $103 trillion of assets under management, adding that “This pool of capital is so vast that what is needed is only 0.03% or up to 0.04% to bridge the infrastructure financing gap for Africa.”

He called on the multilateral development banks to “take early-stage investment risks in the project development phase.”

Improving public financing for infrastructure, Adesina said governments provided the largest share of infrastructure financing and must improve the efficiency of public financing for infrastructure.

He stressed that “they must promote a competitive procurement process, quality project design, timely execution and a better maintenance culture, adding that focus should be on quality infrastructure and go beyond least-cost projects to larger projects that could deliver at scale.

In attracting the private sector, the Bank chief called for governments to focus more on attracting the private sector to infrastructure financing.

He said governments must improve the policy, legal and regulatory environment to support public-private partnership (PPP) investments in infrastructure, pointing out that the African Development Bank Group’s board had just approved a new PPP framework for financing infrastructure.

Adesina asserted that the mobilisation of financing for green infrastructure is critical, with Africa’s share of global green bonds standing at only 0.4 per cent.

He explained that of $522 billion in green bonds issued globally between 2007 and 2018, only $2 billion were issued in Africa, noting that this is why the African Development Bank had collaborated with partners to launch the Alliance for Green Infrastructure in Africa.

The Bank boss said the Just Energy Transition Facility that Africa is developing with G7 partners and South Africa will be an opportunity to raise additional climate finance for the continent.

On Dealing with risk, Adesina said the risk was a critical constraint for investment in infrastructure and advised doing more in de-risking through partial risk, and partial credit guarantees to attract the private sector.

Speaking on stretching the balance sheet of multilateral development banks, the African Development Bank chief emphasised the need for multilateral development banks to stretch their balance sheets to finance infrastructure.

He explained that the “African Development Bank had launched a one-billion-dollar synthetic securitization to transfer risk on its private sector portfolio to the private sector”.

On using local currency for infrastructure financing, Adesina explained that because foreign loans finance the bulk of infrastructure, and the revenue streams are in local currency, this presents a high financial risk to investors.

He said more can and should be achieved by focusing on local currency financing for infrastructure. This, he said, could help with debt sustainability, as the bulk of Africa’s debt today was due to infrastructure financing.

Secretary Yellen told the group that even in the face of crises that demand urgent attention, it was important not to lose focus on long-standing issues like infrastructure.

She said a long-term commitment to infrastructure investment is one of the most reliable tools available to increase growth, which would in turn reduce poverty and foster a more stable global economy.

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The African Export-Import Bank has facilitated Africa's investment climate and strengthened ties with organizations like UNIDO and China Export Bank.

Title:

Content: Thursday 16 November 2023
Chairman of the Board of Directors and Editors
Abdurrahim Ali
Editor-in-Chief
Dalia Abdul Rahim
Chairman of the Board of Directors and Editorial Board
Abdurrahim Ali
Editor-in-Chief
Dalia Abdul Rahim
ECONOMY
Afrixime Bank: Exploiting Africa ’ s Resources to Raise Cash Reserves Revenues
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Helen Broome, Director of Projects and Financing Assets at the African Export-Import Bank, said that the lack of exploitation of available resources in the African continent caused the lack of about half a trillion dollars annually of foreign exchange and high unemployment rates as a result of the import of commodities and the export of raw materials in the form of raw materials, considering that the re-import of raw materials at a high cost or full commodities.
She said in statements that there is an urgent interest and desire on the part of the management of the Bank to work on the use of natural resources in Africa is important to increase the revenues of African countries through the exploitation of resources.
She pointed out that the African continent contains 7% of the world ’ s gas, which contributes 70% of the GDP, as work will be done to strengthen the role of local manufacturing to create more jobs and provide $500 billion in economic returns to African countries.
She added that the Bank focuses on implementing these strategies through continental free trade agreements, where more than 46 African countries have been committed to them, which reflects on improving intra-African trade rates and opens up new markets.
For her part, Emily Mabro, Director of Services, Investment, Equity and Digital Technologies at Afreximbank, said that the Bank ’ s focus is on facilitating the investment climate in African countries through the adoption of legislation and trade deals binding on countries party to the Continental Free Trade Agreement to help investors invest within the African continent, including flexibility in the transfer of goods and services and e-commerce within South Africa, including Kenya....
She added that the African Export-Import Bank has contributed to building various capacities to ensure the realization of various policies to attract more investors to the African market by urging governments to provide incentives and create a favorable business climate to facilitate business within the African country, reduce tariffs and eliminate other non-tariff duties, and strengthen ties between different organizations outside the African region, such as the United Nations Industrial Development Organization (UNIDO) and the China Export Bank. in Africa.
She pointed out the need to increase joint investment opportunities with the regions of southern South Africa and Asia, strengthen the partnership between the government and private sectors in the two regions and increase opportunities for digital transformation, especially with regard to payments and factoring.
She revealed the bank ’ s intention to launch a system to agree on a free trade zone with 70 African countries and establish an integrated system on payment and monetary settlement that ensures the whole African continent as one entity and activate programs and constructive practices to support the regional presence and bank financing projects.

Major foreign investors in Africa include China's State Grid, the UK's British International Investment, and the US's General Electric.

Title:

Content: Africa Business World

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

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

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

The US

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

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

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The EU

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

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

The UK

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

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

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

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

African solutions

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

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

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

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

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

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

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

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

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

Sourced from Africa Feeds

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Title:

Content: ‘Africa must substitute food imports by producing locally’

Sanne Steemers, president of Rest of Africa at AFEX, shares insights on addressing the continent's agricultural trade deficit, combating persistent food price inflation and promoting intra-African trade, as the company expands in Africa.

Conversation with

by

Sanne Steemers is the president of Rest of Africa at AFEX, a Lagos-based commodities exchange platform that operates in three markets across the continent: Nigeria, Kenya, and Uganda. Steemers is responsible for rolling out infrastructure, markets, and capital to smallholder farmers and working on the company’s expansion into 10 markets over the next few years.

Prior to joining AFEX, Steemers worked in several roles as a manager, independent advisor, and entrepreneur in agriculture-focused companies and institutions. During those years, she helped facilitate $320m of investments in agribusiness, reaching 1.3m farmers, according to her own assessment.

After joining AFEX earlier this year, Steemers has now raised her target to $1bn and 10m people. In this interview, she explains her ambitions, AFEX’s expansion into new markets, and the role of commodities exchanges in fighting Africa’s trade deficit in agricultural products.

African Business: What do you identify as the main challenge in your journey to facilitating $1bn in investments into agribusiness?

Sanne Steemers: I think that both in trade and in investments there exist large gaps in the size of the different actors. You have farmers needing small amounts, maybe 100 or $200, to buy the seeds and inputs they need for a season. And then you have people sitting on $1m or $10m who can’t be dealing with hundreds of thousands of farmers at a time. The difference in size is one of the major challenges in bringing investors and smallholders together.

Regarding trade, a similar dynamic exists. In Africa, most farmers operate on small plots of land, typically 1 or 2 hectares, and produce a few bags of grain. But large buyers require truckloads of grain daily. Transforming the small quantities produced by individual farmers into large quantities demanded by processors is another significant hurdle. Addressing these issues is crucial to achieving my goals.

Related articles

What are the main trends you are observing in agriculture this year?

One emerging trend gaining traction and significance is regional trade. Recent events, such as Covid, the Black Sea blockade, and trade imbalances impacting shipping costs, have highlighted the risks associated with relying heavily on international trade, especially for critical commodities like food. As a result, integrating regional markets to reduce dependency on the global market and enhance trade balance is becoming increasingly important.

Another noticeable trend is the growing interest from investors, both local and international, in generating positive impact through their investments. In the past, agriculture, particularly smallholder agriculture in Africa, was often overlooked. But in recent years investors have become more conscious of the need for impactful investments. This shift in investor mindset has led to increased investments in agriculture, which in turn supports improved productivity, local production, market access, and infrastructure.

You’ve mentioned the Black Sea blockade. Food prices are set to spike again on the continent after Russia’s withdrawal from the export deal. This comes after a year of tremendous inflation in many African countries. How is the agriculture futures market reacting to these challenges?

The prices of food have been very high globally. And I think a lot of African countries are hit even harder because their currencies aren’t as strong as some international currencies. What we see is that food prices are definitely higher than they’ve been in previous years and there’s a strong push for substituting imports with local supply because that at least takes the currency dynamic out of the equation.

We have a very strong focus on our commodities exchange, which provides price transparency. In the past, middlemen used to buy commodities as cheap as they could and sell them as expensive as they could to make a high margin and put that in their own pocket, without necessarily adding much value.

What we quite strongly believe in is that in order for countries to be food secure, we need to get price transparency. Farmers should know what their product is worth and buyers what’s available in the market. This would eventually improve the prices for farmers as well as for the buyers in the long term.

On top of that, building infrastructure is critical. Agriculture generally depends on seasonality. Rain determines when the harvest is happening and prices are generally low at that point of time. If you offer farmers an opportunity to store their product for three months, they tend to get a 30% better price for that same product, and their income spreads out throughout the year. That storage also makes sure that food is available for the population throughout the year and not just at harvest time. Addressing these dynamics helps respond to higher food prices, but more efforts are needed in this direction.

Africa suffers from a major trade imbalance in agriculture, mainly driven by large imports of cereals. How can this trend be reversed?

Indeed, trade imbalances in commodities such as rice, wheat, sorghum, and maize are prevalent. I believe reversing this trend involves three things: addressing productivity, reducing waste, and connecting small farmers to larger buyers.

Enhancing productivity is crucial, as many smallholder farmers currently achieve lower yields due to factors like insufficient knowledge, inadequate tools, and limited access to inputs. AFEX addresses this productivity gap, for example through providing inputs on credit, and that input can then be repaid at harvest time, either in cash or in crop, as the farmer prefers. And what we observe is that, on average, it triples the yields that the farmer would otherwise get.

Reducing waste in the value chain is equally essential. Farmers often hold back some of their harvest for personal use or urgent financial needs, resulting in storage under suboptimal conditions and subsequent loss of quality and quantity. Reducing waste along the value chain would help capture additional value for them.

Lastly, aggregating small volumes from farmers can facilitate transactions with larger buyers. For processors to function efficiently, they need consistent supplies in large quantities, which is challenging with a fragmented smallholder system. The idea of a commodities exchange is to aggregate these small volumes to ensure a steady and reliable supply for larger buyers.

To promote intra-African trade in agriculture, what measures need to be taken to re-route current trade routes inwards?

Cross-border trade within Africa hasn’t always necessarily been very easy. There’s a lot of paperwork involved. I know progress is being made as the African Continental Free Trade Agreement is slowly being implemented, and streamlining those cross-border processes is going to help.

I think Africa would also strongly benefit from having unity in quality requirements. For example, in our operations in Kenya, we only do domestic trade, but we’ve seen that Kenya in recent weeks has rejected imports from several other neighbouring countries.

Part of it is also to recognise the opportunity in Africa. I think historically a lot of people haven’t really tried to fix this issue. I do believe that there’s a major opportunity to substitute imports by sourcing locally and supporting the farmers in the country of operation. And, on top of that, I think there’s a lot that can be done with regional trade.

Also, if you look at complementary harvest seasons, for example, when one country is harvesting, there might be higher demand in a different country. Those are the things that we’re trying to solve with our commodities exchange platform. But it’s also a process that requires commitment and willingness.

As a commodities exchange, what are your expectations from financial regulators in the countries you operate in?

What we see is that various countries have a very different view on regulation. If you look at Côte d’Ivoire, for example, historically, there’s been much more regulation in place for the agricultural sector. If you look at Nigeria, there’s hardly been any in the past. So it’s not easy to answer that question on a generic level.

But in most African countries that we work in, a lot of the governments are pro-business in the sense that they allow the private sector to conclude transactions. They’re moving away from the government as a “value chain actor”, and closer to the government as an enabler.

In Kenya, we were the first company to be certified by the Warehouse Receipt System Council, which means that any farmer that produces to our warehouse gets issued a warehouse receipt which is then recognised by a bank. They can then get finance against that receipt, which gives them the flexibility and empowers them to decide what they want to sell their commodity.

We also see that some governments are setting up or powering commodities exchanges. In some of the countries, those are private exchanges that are regulated by the government, such as what we do in Nigeria, but we also have several relations with governments in a number of countries where they want to set up a public commodities exchange. Overall, those initiatives are more towards enabling trade rather than controlling it, which, I think, is a healthy development.

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Leo Komminoth

Leo is tech reporter for African Business, based in Dakar, and also works on data visualisations.

What trends are emerging for African startups in 2022?

The continent's private wealth is expected to reach $3 trillion by 2031.

Title:

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