Africa's economy has grown 5 percent annually over the past decade, attracting foreign investment.

The continent has over 1 billion people, with half expected to be under 25 by 2050, offering a large workforce and consumer market.

Foreign direct investment in Africa increased in 2022, with private equity reaching $7.70 billion and a 66% year-over-year surge in activity.

Africa's technology sector is attracting significant investor interest, with 100% annual growth rates and a 10x increase in venture capital over the last five years.

The health and financial services sectors are also expected to grow due to increased investments.

Foreign investment has gone to various African regions, including countries such as Egypt, South Africa, and Nigeria.

Significant investment has been received in sectors including logistics, infrastructure, automotive, agriculture, pharmaceuticals, and transport, from major foreign companies like DP World and Chinese firms.

African entities like Afreximbank have partnered with foreign companies to promote investment and trade.

The African Continental Free Trade Area (AfCFTA) aims to create a single market for 1.3 billion people across 46 African countries.

The AfCFTA is expected to increase Africa's GDP by 0.5% by 2045, lift 30 million out of poverty by 2035, and eliminate tariffs on 90% of goods and services.

Africa still faces challenges like corruption and inadequate infrastructure that hinder foreign investment and economic growth.

African governments must improve the business climate, fight corruption, and invest in infrastructure and human capital, with international support.

Measuring the success of foreign investments in Africa requires key performance indicators (KPIs) like job quality, climate change, and ESG standards.

Africa offers significant investment opportunities, but also poses challenges and risks that require careful consideration.

Africa's private wealth is projected to reach $3 trillion by 2031, with its Internet economy expected to be 5.1% of GDP by 2025.

The growth of the African middle class and demand for digital services and renewable energy are expected to drive investment, with companies like Google and DP World already investing.

Africa needs to address infrastructure gaps, improve its business climate, and invest in human capital to reach its full potential.

The African Development Bank and other organizations are promoting investment and economic growth in Africa through initiatives like the Africa Investment Forum and African Continental Free Trade Area.

These initiatives aim to promote economic integration and stability in Africa by improving the business climate and mobilizing private investment.

African governments, foreign investors, and international organizations must collaborate to promote investment and economic growth in Africa, a complex issue with both opportunities and challenges.

Africa can become more prosperous and stable by improving its business climate, investing in infrastructure and human capital, and promoting economic integration.

KPIs like ESG standards can help measure the success of foreign investments in Africa and ensure sustainable growth.

Africa offers significant opportunities for foreign investment and can become more prosperous with the right policies.

The African Continental Free Trade Area (AfCFTA) aims to promote economic integration by creating a single market for 1.3 billion people in Africa.

The AfCFTA is expected to increase Africa's GDP by 0.5% by 2045, lift 30 million out of poverty by 2035, and eliminate tariffs on 90% of goods and services.

The AfCFTA is expected to increase Africa's real income by 7% by 2035.

The AfCFTA's implementation faces challenges like inadequate infrastructure, corruption, and political instability.

African governments and international organizations are addressing these challenges through initiatives like the Africa Investment Forum and African Continental Free Trade Area.

These initiatives aim to promote economic integration and stability in Africa by improving the business climate and mobilizing private investment.

Africa received $83 billion in foreign direct investment in 2021, with major investments in Egypt, South Africa, and Nigeria.

Africa's FDI inflows are expected to grow 5% in 2021, boosted about 25% by the AfCFTA.

The AfCFTA is expected to increase intra-African trade by 34% and lift 30 million people out of extreme poverty by 2035.

Africa still faces challenges like corruption and inadequate infrastructure that hinder FDI and economic growth.

African governments must improve the business climate, fight corruption, and invest in infrastructure and human capital, with international support.

The growth of the African middle class and demand for digital services and renewable energy are expected to drive investment, with companies like Google and DP World already investing.

The African Internet economy is expected to reach 5.1% of GDP by 2025, with $1.31 billion invested in startups in 2021.

The growth of the African middle class is expected to drive investment in digital services and renewable energy, with companies like Google and DP World already investing.

Africa needs to address infrastructure gaps, improve its business climate, and invest in human capital to reach its full potential.

The African Development Bank and other organizations are promoting investment and economic growth in Africa through initiatives like the Africa Investment Forum and African Continental Free Trade Area.

These initiatives aim to promote economic integration and stability in Africa by improving the business climate and mobilizing private investment.

African governments, foreign investors, and international organizations must collaborate to promote investment and economic growth in Africa, a complex issue with both opportunities and challenges.

Africa can become more prosperous and stable by improving its business climate, investing in infrastructure and human capital, and promoting economic integration.

KPIs like ESG standards can help measure the success of foreign investments in Africa and ensure sustainable growth.

Africa offers significant opportunities for foreign investment and can become more prosperous with the right policies.

The African Continental Free Trade Area (AfCFTA) aims to promote economic integration by creating a single market for 1.3 billion Africans.

The AfCFTA is expected to increase Africa's GDP by 0.5% by 2045, lift 30 million out of poverty by 2035, and eliminate tariffs on 90% of goods and services.

The AfCFTA is expected to increase Africa's real income by 7% by 2035.

The AfCFTA's implementation faces challenges like inadequate infrastructure, corruption, and political instability.

African governments and international organizations are addressing these challenges through initiatives like the Africa Investment Forum and African Continental Free Trade Area.

These initiatives aim to promote economic integration and stability in Africa by improving the business climate and mobilizing private investment.

Africa received $83 billion in foreign direct investment in 2021, with major investments in Egypt, South Africa, and Nigeria.

Africa's FDI inflows are expected to grow 5% in 2021, boosted about 25% by the AfCFTA.

The AfCFTA is expected to increase intra-African trade by 34% and lift 30 million people out of extreme poverty by 2035.

Africa's economy has grown 5 percent annually over the past decade, attracting foreign investment.

Title:

Content: Optimists talk about Africa as the next economic frontier

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BY DELIA DE VILLIERS

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

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

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

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

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

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

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

Picking your next market is key

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

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

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

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

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

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

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

Beyond the obvious

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

These are among the main reasons.

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

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

Embracing innovation

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

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

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

BUSINESS REPORT

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What trends are emerging for African startups in 2022?

The continent has over 1 billion people, with half expected to be under 25 by 2050, offering a large workforce and consumer market.

Foreign direct investment in Africa increased in 2022, with private equity reaching $7.70 billion and a 66% year-over-year surge in activity.

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African private equity activity surges to 5-year high in 2022

Private equity and venture capital investments in Africa soared 66% year over year in 2022 to $7.70 billion, the highest aggregate value for the region in the last five years, S&P Global Market Intelligence data shows.

The massive jump was mainly due to the proposed acquisition of hospital operator Mediclinic International PLC, which is valued at more than $5 billion.

Transaction volume, which includes M&A and rounds of funding, has steadily climbed in the region since 2018 and reached 404 deals in 2022. The continent saw a full-year increase in transaction volume even as activity slowed sharply in the final quarter of the year.

Investments with private equity involvement totaled $370 million in the fourth quarter of 2022, down 71% from $1.28 billion in the prior-year period. Deal volume declined 43% over the same time frame.

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Attractive valuations, young demographics

African technology companies offer appealing entry valuations and high growth rates of about 100% annually compared to peers in the U.S., according to Fope Adelowo, principal at Helios Investment Partners LLP, which invests in telecommunications, media and financial services across the region.

"The growth outlook for those sectors are not only quite positive, but they are also, in many ways, noncyclical," Adelowo said. "When you look at the global environment, whether that's people using more digital methods to make payments ... consumers consuming more data, we're really just in the early stages."

African economies are also buoyed by young populations that are "increasingly entrepreneurial and driven by technology-led innovation," Adelowo said. Money moved into venture capital in the region has grown about 10x in the last five years, largely due to that young population, which is "very digitally engaged." That is helping drive innovation to address inefficiencies in many sectors in Africa, Adelowo added.

Health, tech sectors drawing interest

Once the multibillion-dollar deal for Mediclinic closes, that transaction will become the largest private equity capital deployment in Africa in the last three years. Mediclinic's buyers include Remgro Ltd. and SAS Shipping Agencies Services SÀRL. The deal is expected to close in the first quarter.

The technology sector, particularly digital infrastructure, is also attracting investor interest, Adelowo said. There is an imbalance in the supply of data centers, for example, compared to growth expected from consumers that need more data and are spending more time online.

Africa's financial services and fintech sectors are also expected to continue to grow as many African countries increasingly move to a cashless society, Adelowo added.

What trends are emerging for African startups in 2022?

Africa's technology sector is attracting significant investor interest, with 100% annual growth rates and a 10x increase in venture capital over the last five years.

What trends are emerging for African startups in 2022?

Which sectors are Chinese investments in Africa focusing on?

The health and financial services sectors are also expected to grow due to increased investments.

What trends are emerging for African startups in 2022?

Which sectors received the most foreign investment?

Foreign investment has gone to various African regions, including countries such as Egypt, South Africa, and Nigeria.

Title:

Content: Countdown to Expo 2020 Dubai
Sultan bin Sulayem in an interview with Al Bayan:
We enter the future with the spirit of “50 ” achievement
Sultan Ahmed bin Sulayem, Chairman and CEO of DP World Group and Chairman of Ports, Customs and Free Zone Corporation, said that the UAE has achieved exceptional gains during the past five decades, pointing out that confidence in the future is firmly established in the preparations for the next 50 years with ambitions that embrace the sky, and with the hands of national competencies loyal to the legacy of the founding fathers and committed to stand united behind our wise leadership to design the future emirates.
DP World is determined to contribute to the 50 project and shape the future of the UAE, he said, pointing out that the company aims to actively participate in uniting minds and visions to achieve innovation, and be ready to meet the requirements of a new phase of development in the UAE. Both high and developed markets.
The dialogue reads as follows:
1 What role has the logistics sector played in the renaissance of the UAE since the establishment of the federation?
How does DP World contribute to the development of the country ’ s position on the world trade map?
The UAE in general, and Dubai in particular, enjoy world-leading logistics services and flexible economic solutions. One of the key pillars is the new Dubai International Trade Map, which includes the extension of the Dubai Trade Lines network to 200 new cities to establish the emirate ’ s role at the heart of global trade.
We are proud of the exceptional gains achieved by our country over five decades, and our confidence in the future is strengthened in our preparations for the next 50 years, driven by aspirations that embrace the sky and the hands of national competencies loyal to the legacy of the founding fathers, God have mercy on them, and committed to stand united behind our wise leadership to design the Emirates of the future.
For example, at DP World, we have invested nearly $4 billion over four years in digital technology and today we are ready to emerge stronger from the COVID-19 crisis.
As a leader in its sector, DP World has committed to a zero-carbon future by 2050, and our approach is to implement applicable and future-oriented reduction measures, which we see in five pillars: enhancing the electrical use and efficiency of equipment, improving process efficiency and digitization, renewable energy supply, low-carbon fuel supply, and carbon offsetting through the Global Ocean Improvement Programme ’ s Blue Carbon Initiative.
2 What are the most important factors that have contributed to DP World ’ s success locally and globally?
How does DP foresee the future of logistics in the next 50 years?
We are determined to make our presence felt in the Fifty Project and shape the future of the UAE. Our goal is to be active participants in uniting minds and visions to achieve innovation, and to be ready to meet the requirements of a new phase of development in the UAE.
DP World has been at the forefront of efforts to connect countries on different continents. DP World ’ s growing network of ports, terminals and economic zones is the cornerstone of business. We offer our services through an interconnected global network of 181 business units in 64 countries across six continents, reflecting our presence in both high growth and developed markets.
Throughout our operations, we integrate sustainability and corporate social responsibility into our activities and strive to make a positive contribution to the economies and communities in which we work and live.
The announcement of 2021 marks the culmination of the pioneering march of the UAE 50 years since the establishment of the country, during which we presented the world with a unique model of construction and achievement, placing the UAE among the most advanced countries in the world to learn from our experience all countries looking to develop their capabilities quickly to catch the path of global progress. A new promising and promising future for the country will be built by generations with vigor and determination.
3 What are the highlights of the Hyperloop project in Jebel Ali?
Are the parameters of the project clear?
Are you still confident of its effectiveness in transporting people or shipping goods?
We have invested in Hyperloop technology, and DP World is a key enabler for the development and use of this technology.
Hyperloop systems will not only support the transportation of passengers, but also the transportation of high-priority goods on demand, allowing deliveries to be completed in hours with greater reliability and less delay.
It will expand cargo transport capabilities through connectivity with current modes of transport, via road, rail, port and air transport, and will provide greater connectivity to manufacturing complexes, economic zones, distribution centres and regional urban centres.
The Virgin Hyperloop passenger experience a few months ago offered a glimpse into the future, demonstrated the maturity of our technology, and we are approaching the commercial phase of commercializing what will be the first new mode of transportation on a large scale in a century. DP World is the largest global investor in Hyperloop. Hyperloop is a seamless and secure way to connect cities in minutes, compared to hours, for passengers and cargo.
4 How many marine and inland terminals does DP manage globally?
Are there any targets for these stations in the future?
We have a global network of 181 business units in 64 countries across six continents, reflecting our presence in both high-growth and high-growth markets. In all our operations, we integrate sustainability and corporate social responsibility into our activities and strive to make a positive contribution to the economies and communities in which we work and live.
Our team of more than 56,000 employees from 140 nationalities is committed to delivering unprecedented value to our customers and partners, and we achieve this by focusing on building mutually beneficial relationships with governments, shipping lines, traders and other stakeholders in the global supply chain.
5 What are DP World ’ s top priorities in the coming period?
We have recently seen cargo owners respond positively to our comprehensive product offerings and aim to continue our quest to enable trade.
The recently announced acquisitions of Imperial Logistics and Syncreon have brought value-added potential to high-growth sectors and markets, enabling us to deliver a more robust range of supply chain solutions. By leveraging best-in-class infrastructure across inland logistics, ports, container terminals, economic zones and maritime logistics network, DP World aims to overcome obstacles and improve connectivity in fast-growing trade corridors such as Asia. Importantly, we continue to make positive progress in our capital recycling program, along with strong operating performance, which puts us in a good position to meet the 2022 pooled leverage target (for DP World and Ports and Free Zones Global) of less than 4 times the net debt to adjusted earnings before interest, tax, depreciation and amortization ratio.
6 Dubai Ports has recently focused on Africa What are your most prominent projects and partnerships?
DP World continues to seize opportunities, increasing the value of its investments in the African continent, which confirms the commitment of Dubai and its leading economic institutions to develop and implement projects that will promote economic growth.
In 2021, I look forward to stronger partnerships across Africa, and I am optimistic that partnerships in the region will help take advantage of the new opportunities that the AfCFTA will provide. I am excited to collaborate to build an Africa that works for them, not just the world. DP World is strengthening its presence in Africa and expanding its business there. logistics, trade corridors, e-commerce, and other business.
Africa needs the benefits of global trade despite its abundant natural resources and a growing young workforce.
Africa is centrally positioned to integrate into global trade and supply chains, and the development of trade corridors and port infrastructure is critical to connecting the continent in order to drive economic growth and development, thus becoming a key player in the global trade movement.
DP World currently has operations in Somaliland, Rwanda, Mozambique, Algeria and Egypt, and has recently entered into concession partnerships with the governments of Angola and Senegal.
In Senegal, the company has entered into an agreement to develop a deep seaport in Ndayan, 50 kilometers from Dakar ’ s main port, and DP World will invest $837 million in the first phase.
An investment of $290 million is expected in the second phase, which will be DP World ’ s largest investment in Africa to date.
The project will support Senegal ’ s development over the next century and reinforce Dakar ’ s role as a major logistics hub and gateway to West and Northwest Africa.
The company also signed a 20-year concession agreement with the Government of Angola to operate the multi-purpose container terminal at the Port of Luanda, following a global tender, and DP World will invest $190 million during the 20-year concession period.
The plans include the rehabilitation of existing infrastructure and the addition of new equipment, in order to improve the quality of operations according to international standards and raise the efficiency of the multipurpose container terminal, thus achieving the company ’ s overall goal of increasing the capacity of the terminal to approximately 700,000 TEU per year.
We also place great emphasis on the training and development of Angolan personnel working at the plant.
The group also has development and expansion projects in the port of Berbera in Somaliland.
DP World will invest up to $442 million to expand the port, including infrastructure development.
In August last year, DP World completed the construction of a new 400m berth and the expansion of the new 25 hectare container terminal yard.
Upon completion of the expansion, the capacity will increase by 500,000 20-foot TEU per year.
DP World Berbera is a mixed-use port where customers handle a wide range of cargo, including bulk, general cargo, RORO cargo, livestock and containerized cargo.
In Egypt, we are investing $520 million in the Red Sea port of Sokhna to expand Basin 2, which will almost double the port ’ s container handling capacity to 1.75 million 20-foot TEU per year.
In addition to existing port operations across the region and new concession agreements, the company has also committed to projects including the development of free economic zones in Namibia, Mali and Egypt, and the development of the Banana Port in the Democratic Republic of the Congo.
DP World Group signed a Memorandum of Understanding (MoU) late last year with the Rwanda Development Council to make Rwanda the first country where we will launch our new global e-commerce platform, DuBuy.com.
Companies using the platform will benefit from DP World ’ s broader services and investments, boosting trade within the continent and between Rwanda and the UAE.
7 Africa suffers from many challenges but it is full of opportunities, how do you see its prospects economically and commercially?
The low rate of intra-regional trade makes it exceptional compared to the rest of the world, where export levels are much lower, and intraregional trade is driving growth, accounting for less than 20% of the volume of trade within the continent ’ s borders, while this figure is about 50% in the United States and more than 60% in Europe.
Experts say the collapse of foreign direct investment (FDI) flowing into African economies during the COVID-19 pandemic has reinforced the need for intra-African trade.
The recent signing of the African Continental Free Trade Area (AfCFTA) agreement is a crucial step in this direction.
This historic trade agreement will enable Africa to quickly integrate its logistics operations and focus on creating new sources of prosperity from Africa ’ s domestic trade flows.
In the short term, the African Export Impact Bank expects the trade agreement to generate more than $84 billion in untapped exports between African countries.
When the agreement actually comes into effect in 2030, Africa could be the world ’ s largest free trade area with a population of over 1 billion people (60% of whom are active labor), a gross domestic product of $2.5 trillion, and most importantly, more than 50% of Africa ’ s trade will come from intra-continental flows, more than double the current ratio.
Africa will pave the way for itself to achieve an enormous trading position by reducing or eliminating cross-border tariffs on the majority of goods, encouraging the movement of capital and people, and investing in a continent-wide customs union.
On average, transport infrastructure adds between 30% and 40% to the cost of goods traded between African countries, where roads, rail networks and inland storage facilities operate on the basis of inefficient and outdated methods.
The continent is in dire need of continued investment and partnerships, whether financial, technological or infrastructure, and I have made it clear that DP World will continue to invest and partner with governments and business communities across Africa.
8 How does DP World deal with changes in global trade?
The outlook for global trade in 2020 has been bleak, as the world is preoccupied with the fight against the pandemic and its effects, and the picture is more positive today, as shown by the results of the latest special edition of the Future of Trade Report 2021. Despite the remarkable flexibility of global trade activities, it is undergoing a series of sweeping changes. The drive to combat climate change, as well as the impact of geopolitical factors, provides several concrete recommendations for governments and businesses seeking to adapt to this new landscape and accelerate recovery from the pandemic.
9 What are the main features of your strategy to develop Jebel Ali ’ s attractiveness in the coming period?
Foreign companies prefer the quality and luxury of life in Dubai, and Dubai is linked commercially and economically with markets of 2 billion people with strong financial solvency, and the same goes for its government and semi-government companies.
Jafza witnessed an increase in total trade volume from $99.5 billion in 2019 to $104.2 billion for 2020, an increase of 5% year-on-year, figures show that Jafza ’ s contribution to Dubai ’ s total trade rose to 32%, and Jafza is the largest FDI platform with 23.9% of total FDI inflows to Dubai.
Jafza plays a pivotal role in leading the trade sector in Dubai as a regional and global hub for business and logistics, and we are proud of our achievements, thanks to the forward-looking vision of our leadership, policies and stimulus packages.
This achievement underscores our determination to continue to succeed, and our commitment to be active contributors to the success story of Dubai and the UAE.
Jafza ’ s continued growth since its inception underscores its ability to capitalize on market dynamics and provide growth opportunities for customers even during the toughest times.
The free zone supports Dubai and the UAE ’ s efforts to diversify the economy through pioneering innovative processes, and through initiatives such as the Electronic Delivery Request Service and the Zadie platform within the Dubai Trade portal, the free zone allows its partners to complete various transactions at the click of a button.
As part of its efforts to integrate technology into all aspects of operations, Jafza has partnered with Etisalat to introduce 5G technology and how it can revolutionize the way the company operates, and our corporate goals align with the Ministry of Economy ’ s 50th Economy Plan, which aims to double the country ’ s GDP by 2030.
Through our forward-looking approach and ability to anticipate change and stimulate innovation, we are contributing to the strengthening of Dubai ’ s economy, which is expected to grow by 4% this year.
Our main goal is to create a productive, efficient and secure business environment for local and international companies, and through Jafza, we give them the opportunity to operate within a world-class framework, supported by innovative business solutions.
Jafza, with its specialised industrial, commercial and logistics sectors, offers unprecedented growth opportunities and huge potential for companies to gain direct access to markets with more than 3.5 billion consumers across diverse sectors in the Middle East, Africa and South Asia.
Some of the key sectors contributing to Jafza ’ s growth include electronics and electrical appliances.
10How do you assess the financial situation of DP World?
The Group continues to strive for positive progress in its capital recycling programmes and remains fully committed to achieving its net debt leverage target of less than 4 times profit before interest, tax, depreciation and amortization by the end of 2022.
A strong start to the year put us in a good position to deliver improved financial performance in 2021, and with the trading environment looking more moderate, we will remain focused on cost containment to increase profitability, manage capital expenditure and continuously implement our strategy of delivering integrated supply chain solutions to beneficial cargo owners.
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What trends are emerging for African startups in 2022?

Which African countries are driving the venture capital ecosystem?

Significant investment has been received in sectors including logistics, infrastructure, automotive, agriculture, pharmaceuticals, and transport, from major foreign companies like DP World and Chinese firms.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ends/////

Issued by Brand South Africa

Notes to the Editor

Contact: Phindi Mathebula

Email:phindilem@brandsouthafrica.com

Mobile number: +27 64 890 7414

About Brand South Africa

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

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What trends are emerging for African startups in 2022?

African entities like Afreximbank have partnered with foreign companies to promote investment and trade.

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Content: Thursday 16 November 2023
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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.

Which countries are actively investing in Africa besides China?

The African Continental Free Trade Area (AfCFTA) aims to create a single market for 1.3 billion people across 46 African countries.

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Content: AfCFTA opens new era of possibilities for African trade

Africa’s ambitious free trade pact aims to transform the continent by creating a single market of 1.3bn people. But how fast is implementation of the African Continental Free Trade Area progressing?

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Since colonial times, African trade has been dominated by the export of commodities to more developed countries outside the continent. Raw materials such as petroleum from Angola, lithium from the Democratic Republic of Congo and copper from Zambia are transformed into higher-value products in Europe, Asia and North America.

With limited possibilities to turn them into finished products, African countries lose out – cocoa producers such as Côte d’Ivoire and Ghana capture less than 7% of the value of the $120bn global chocolate industry. In 2021, Nigeria, one of Africa’s biggest exporters of crude oil, imported $11.3bn worth of refined petroleum products from countries such as the Netherlands and Belgium.

Meanwhile, trade between African countries is low. In 2017, trade with other African countries accounted for 16.6% of African countries’ total exports, while the comparative figure in Europe was 68.1%.

With trade going via sea to Europe, Asia and North America, the continent’s road and rail infrastructure has remained relatively underdeveloped, making intra-African trade both slow and expensive. In addition, trade integration across the African continent has long been limited by outdated border infrastructure, a patchwork of differing regulations across dozens of markets and trade barriers erected to defend industries against regional competition.

The African Continental Free Trade Area (AfCFTA) agreement is an ambitious trade pact that aims to transform this situation by turning Africa into the world’s largest free trade area. When fully implemented it will create a single market for goods and services for almost 1.3bn people across Africa, with a combined GDP of around $3.4 trillion.

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The decision to work towards the creation of a continental market for goods and services was taken by the African Union in 2012. Negotiations for the AfCFTA began in 2015 and the agreement was signed by 44 of the African Union’s 55 member states in Kigali, Rwanda, on March 21, 2018. The only country still not to sign is Eritrea.

In the words of Wamkele Mene, the head of the AfCFTA Secretariat – the institution responsible for coordinating implementation of the agreement – the AfCFTA provides Africa with a “renewed opportunity to steer its economic relations away from a reliance on external donors, foreign creditors and excessive commodity dependence, ushering in a new economic era focused on self-reliant cooperation, deeper integration and higher levels of intra-African trade”.

In a 2020 report, the World Bank estimated that under the AfCFTA the volume of total exports would increase by almost 29% relative to business as usual by 2035. Intra-continental exports would increase by more than 81%, while exports to non-African countries would rise by 19%.

By May 2019, the number of states ratifying the treaty had passed the threshold of 20 required for it to enter into force; the number now stands at 47. However, while trading under the AfCFTA officially commenced on 1 January 2021, meaningful trade has only begun in eight countries (see below). Implementation is an ongoing process and it will be years before the AfCFTA reaches its full potential.

Many issues still to be resolved

AfCFTA negotiations have taken place in three phases. Phase 1 was completed with the ratification of the AfCFTA agreement, which was accompanied by protocols on trade in services and goods and settlement of disputes. This provided a basis for the commencement of free trade, but many details have yet to be resolved.

For example, states have undertaken to eliminate tariffs on 97% of goods and services produced by member states, with 90% to be eliminated in equal instalments over five years in the more advanced economies and 10 years in less developed economies. States must submit their proposed tariff reduction schedules for negotiation, but a number have yet to do so, including Africa’s largest economy, Nigeria.

Non-tariff barriers (NTBs) – barriers to trade that take a form other than tariffs or customs duties – are prohibited under the AfCFTA, but their removal will be a long process. Traders are able to submit online complaints about NTBs to the Continental Non-Tariff Barrier Mechanism, from where they will be passed to government officials charged with eliminating them, but to date very few submissions have been made.

Rules of origin under the trade in goods and services protocol have also proved a sticking point. Tariff reductions apply only to goods produced in member states, but ambiguities arise when products contain inputs from non-AfCFTA countries, so agreement must be reached on which goods qualify. Some countries, such as Nigeria, have taken a more conservative line on this in order to protect nascent industries, while others such as Mauritius, which could profit from trade agreements with China on textiles and apparel, are seeking a more liberal interpretation.

Phase 2 negotiations led to the adoption of draft protocols on intellectual property rights, investment and competition policy in February 2023. The protocol on competition will require many countries to enact laws to promote healthy competition and will be overseen by an AfCFTA Competition Authority. A further protocol on women and youth in trade is yet to be negotiated and will address the specific barriers these groups face through legally binding commitments.

Phase 3 negotiations for a protocol on digital trade are still underway. The AfCFTA Secretariat recently incorporated feedback from state and non-state parties into a second draft of the protocol. It contains sections on digital product market access, robust data governance frameworks, and a focus on digital inclusion with new articles geared towards online safety, the promotion of digital entrepreneurship, and the drive towards enhancing digital skills.

Meaningful trading commences

In October 2022, the Guided Trade Initiative was launched to allow a degree of meaningful free trade between countries that had met minimum requirements and to test the AfCFTA’s operational, institutional, legal and trade policy environment. Eight countries (Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia) are taking part. Nigeria was due to join in August 2023, but at time of writing had still failed to meet all the requirements.

Other significant developments include the launch of the Pan-African Payment and Settlements System in 2021, which has helped to simplify cross-border trade. It is a continent-wide platform for processing, clearing and settling intra-African payments, designed to enable individuals, businesses and governments to make instant cross-border payments in the more than 40 different African currencies, thereby reducing the need to obtain US dollars.

This March saw the launch of the AfCFTA Adjustment Fund, which is intended to support African countries and the private sector as they adjust to the new trading conditions. The $10bn fund will help to mitigate potential adverse effects of the loss of revenues from tariffs and to address infrastructure deficits that impede implementation of the AfCFTA.

Involving the private sector

“The significant milestones achieved under the AfCFTA within a relatively short period of time is testament of the political will, power of cooperation and a shared vision of Africa’s political leadership,” AfCFTA secretary-general Wamkele Mene told a meeting in Nairobi in May.

But he also stressed that the AfCFTA will not achieve any success without the involvement of the private sector, which is estimated to account for around 80% of production and employs 90% of the working age population.

“It is, therefore, critical that they receive the necessary support in order for them to have a major transformational impact on the continent,” he said.

Rwanda’s New Times recently reported on Igire Coffee. A small, female-owned export company that buys from a women’s coffee-producing cooperative, it was the first company to export goods from the country under the Guided Trade Initiative.

The company’s owner, Briggette Harrington, noted that there had been some problems with certification but that she had increased her trade volumes. “Definitively, the agreement works,” she told the newspaper.

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The AfCFTA is expected to increase Africa's GDP by 0.5% by 2045, lift 30 million out of poverty by 2035, and eliminate tariffs on 90% of goods and services.

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Content: 00: 00
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Africa ’ s Incomplete Trade Agenda
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The African Continental Free Trade Area (AfCFTA) agreement, which entered into force on January 1 last year, promises to accelerate the diversification of the region ’ s economies and reduce the impact of commodity price cycles on growth.
While primary commodities and natural resources dominate Africa's external trade, the first shipment under the African Continental Free Trade Agreement (AfCFTA) - from Ghana to South Africa - involved manufactured goods of the kind that largely drove intra-African trade.
Therefore, many observers hope that the AfCFTA initiative — by creating a single market of 55 countries with a combined population of more than 1.3 billion and a combined GDP of $3.4 trillion — will spur industrialization as companies leverage economies of scale to share the risk of investing in smaller markets.
To this end, the trade agreement will eliminate tariffs on 90% of goods (the ultimate goal is to liberalize 97%).
The AfCFTA agreement is likely to boost foreign direct investment across Africa — empirical evidence in other countries suggests that joining the FTA could raise such investment by about a quarter — and shift its focus from natural resources to labour-intensive manufacturing.
Moreover, the agreement has the potential to transform African economies, significantly increase the continent's share in world trade and strengthen its negotiating capacity in international trade negotiations.
While many countries have described the AfCFTA as a game changer for Africa, trade liberalization alone will not necessarily guarantee economic success.
To be sure, the Convention has received a great deal of attention in academic and political circles.
The World Bank, the International Monetary Fund, the United Nations Conference on Trade and Development, and the African Export-Import Bank have compiled extensive studies on the potential impact of the African Continental Free Trade Area.
The Journal of African Trade recently published a special issue on the African Continental Free Trade Area and African Trade, which I edited jointly with Andrew Moldt of the United Nations Economic Commission for Africa.
All these analyses point to the decisive and positive impact of the Convention on economic development.
Specifically, the empirical results under computable general equilibrium models — which allow for the trade transformation and creation effects of tariff and non-tariff shocks by exploiting countries ’ comparative advantage and price adjustments — are highly encouraging.
Overall headline estimates from these models show that the AfCFTA will increase Africa ’ s GDP by 0.5% after its full implementation in 2045, compared to a scenario that does not include continental trade integration.
Real wages will rise for both skilled and unskilled workers, especially for unskilled workers, signaling a shift towards more inclusive growth.
The World Bank estimates that the AfCFTA agreement will lift 30 million people out of extreme poverty and 68 million out of moderate poverty by 2035, with women benefiting more than men.
Trade integration can also have a significant impact at the household and business level, with total consumer and business spending expected to reach $6.7 trillion by 2030.
Intra-African trade is expected to grow strongly under the AfCFTA, with intra-African exports increasing by 34% (equivalent to about $133 billion annually) compared to a no-deal scenario.
Moreover, about two-thirds of intra-African trade gains are likely to be achieved in the manufacturing sector – historically the most effective factor out of poverty.
This would pave the way for an enhanced welfare and mutually reinforcing relationship between trade and manufacturing within the region, leading to sustainable growth of well-paid manufacturing jobs while expanding countries ’ tax bases and improving their external accounts.
However, large NTBs, regulatory differences, sanitary and phytosanitary (SPS) standards, and divergent technical standards increase the costs of cross-border trade within Africa by about 14.3%, well above the average tariff of 6.9%.
Removing these constraints and deepening the integration of African firms into global value chains would significantly boost intra-African trade and drive growth.
The World Bank estimates that full implementation of the African Continental Free Trade Agreement (AfCFTA) could raise Africa ’ s real income by 7% (about $450 billion) by 2035, with trade facilitation measures to reduce red tape and simplify customs procedures responsible for $292 billion of this increase.
Overcoming Africa's chronic infrastructure deficit -- both physical and digital -- would strengthen the power of trade creation and help ensure the successful implementation of the African Continental Free Trade Area (AfCFTA) agreement.
By addressing the continent's supply-side constraints, policymakers can enhance both production and logistics in a region with more landlocked countries (16) than any other region.
As investors seek to take advantage of the advantages offered by the AfCFTA agreement, market integration and improved connectivity should be a top priority.
Clarification of the AfCFTA rules of origin – which determine whether products are duty-free under the agreement – is also key to accelerating industrialization and developing regional value chains.
Despite the challenges posed by the COVID-19 crisis, negotiators have made significant progress on the rules of origin agreement, which is due to be concluded later this year.
This would pave the way for phase II negotiations on key drivers of future growth, including protocols on investment, competition policy and intellectual property rights.
As the rush to conclude bilateral trade agreements with third countries suggests, the most important challenge in the area of trade integration in Africa may be the perennial challenge of putting the collective interest of the region first.
Although the AfCFTA does not prevent member states from entering into this type of negotiation, bilateral deals with third parties can affect African trade patterns and set precedents for regional trade and investment rules.
In practice, they can divert trade, given that the African Continental Free Trade Area MFN clause automatically extends third-party tariff concessions to African Continental Free Trade Area (AfCFTA) members.
As Jeffrey Sachs put it: “Without a doubt, if Africa becomes economically integrated, it will become a global leader and the world ’ s largest economic region. ”
At the time of writing, 41 countries had ratified the African Continental Free Trade Agreement (AfCFTA).
But if this agreement is to become a springboard for Africa ’ s deeper integration into the global economy, governments must complement trade liberalization with strong trade facilitation measures and strengthen regional coordination in order to deal with external partners as a unified trading bloc.
Chief Economist and Director of Research at the African Export-Import Bank (Afreximbank).
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Africa still faces challenges like corruption and inadequate infrastructure that hinder foreign investment and economic growth.

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Corruption, a skills gap, fragmented planning and coordination and political stability stand in the way of infrastructure reaching its potential in driving economic progress and societal advancement across Africa. The pervasive mismanagement of infrastructure projects across the continent, and South Africa as a regional economic powerhouse, has far-reaching consequences for the continent, impeding economic growth, social development, and sustainable progress.

The Africa infrastructure imperative

Infrastructure is the bedrock of development, catalysing economic expansion, poverty alleviation, and enhanced quality of life. In Africa, the importance of infrastructure is magnified due to its potential to ameliorate specific regional issues like inadequate access to clean water, healthcare, education, and electricity. Efficient transportation systems, energy networks, communication platforms, and water facilities are vital in connecting people, goods, and services, paving the way for diversified economies and poverty mitigation.

However, the World Bank has estimated that inadequate water and sanitation costs Africa about 5% of GDP. In addition, the poor quality of the region’s roads, rail and port infrastructure is increasing the cost of intra-African trade by between 30% to 40%, according to the Infrastructure Consortium for Africa. These are costs Africa can ill afford. The benefits of bridging the multi-trillion-dollar infrastructure gap are immense for all economic stakeholders, including investors seeking to unlock alternative sources of stable long-term returns, such as those delivered by the Prescient Clean Energy and Infrastructure Funds.

The challenges and complexities

The failure to implement infrastructure projects effectively has been a recurring issue across African nations, including South Africa. The complexities that underlie these failures include:

  • Corruption and mismanagement: Corruption remains a pervasive obstacle, diverting funds earmarked for projects and resulting in incomplete or subpar ventures. Transparency International data highlights the extent of the problem. Its 2022 Corruption Perceptions Index ranks African countries low down in the rankings. South Africa, as an example, ranks 72 out of 180 countries, with a score of 43 out of 100.
  • Skills gap and expertise deficit: The lack of specialised skills and technical expertise within governments often leads to haphazard project planning and execution. This deficiency contributes to delays, cost overruns, and compromised quality. As highlighted by a recent report from the World Bank, it is estimated that about 34% of African public infrastructure projects experience significant time and cost overruns due to skill shortages.
  • Fragmented planning and coordination: Disjointed coordination among stakeholders can lead to project bottlenecks and inefficiencies. The African Development Bank reports that insufficient coordination between public and private sector players significantly hinders infrastructure development.
  • Political instability: Frequent political changes disrupt project continuity. Shifts in leadership can result in the abandonment of projects or alterations in strategic priorities. South Africa has faced political turbulence in recent years, impacting the consistency of infrastructure initiatives.

According to Tshidavhu and Khatleli (2020), only 20% of African mega projects reach financial closure because of insufficient labour skills, labour efficiency, improper planning, slow decision-making, and economic policies.

Counting the cost of inadequate infrastructure spending:

The repercussions of suboptimal infrastructure implementation ripple across the continent, with the resultant costs including:

  1. Growth inhibition: Underdeveloped infrastructure stunts economic diversification and dissuades foreign investment. Simply put, industries like manufacturing and agriculture cannot be expected to grow without reliable energy, transportation issues, and ineffective communication systems.
  2. Social disparities: Unequal access to basic amenities, such as water supply, healthcare, and education, perpetuates social disparities, disproportionately affecting marginalised communities and further entrenching poverty.
  3. Continental disconnections: A lack of seamless communication and transport networks impedes Africa’s integration into the global economy. This isolation hampers trade prospects and obstructs the adoption of technological advancements.
  4. Environmental impacts: Outdated energy systems and inadequate waste management from ineffective infrastructure planning exacerbate environmental degradation. Unsustainable practices worsen pollution and ecological strain.

What next – the path ahead:

Tackling Africa’s infrastructure difficulties will require a comprehensive approach. Based on our analysis, the following conditions are required:

  1. Governments must prioritise transparent management and accountable governance in infrastructure projects. Doing so by enforcing robust regulations and oversight mechanisms would curb corruption and ensure judicious fund utilisation.
  2. Effective project execution is only possible if government bodies invest in technical skills and knowledge. Collaboration between the public and private sectors, and with international partners can facilitate knowledge exchange and ultimately bolster capacity. South Africa’s successful renewable energy programme is evidence of this.
  3. Research shows that infrastructure planning, most likely at a central level, can transcend political cycles. The formulation of enduring national development strategies which outline long-term objectives will not only result in adequate planning but also have the potential to provide stability and consistency to infrastructure endeavours, which is critical when there is a requirement to “crowd-in” private sector funding.
  4. Leveraging private sector partnerships is key to securing funding, expertise, and innovation. Public-private collaborations distribute risks and responsibilities more effectively, leading to improved project outcomes.

Africa’s journey towards development is intrinsically tied to its ability to institute robust infrastructure networks that cater to the diverse needs of its population. While challenges abound, collective efforts aimed at transparent governance, skill empowerment, strategic planning, and intersectoral collaboration can alleviate these hurdles. The potential for Africa’s economic growth and sustainable development hinges on its capacity to erect a resilient infrastructure framework, fostering connectivity, inclusivity, and achieving competitiveness on the global stage.

Infrastructure at Prescient:

The Prescient Clean Energy and Infrastructure Funds stand testament to our commitment to South Africa’s infrastructure drive and is in line with our broader corporate ethos of investing in real assets that contribute to sustainable development while making a meaningful difference in the lives of ordinary South Africans.

We have debunked the notion that impact and commercial success are mutually exclusive. By targeting specific areas of infrastructure, we have shown that responsible investment can be a driver of both positive social change and financial growth.

As we move forward, we remain dedicated to our mission, understanding that Africa’s journey towards development is intricately linked to the establishment of resilient infrastructure networks. Through transparent governance, skill empowerment, strategic planning, and collaboration across sectors, we aspire to contribute to the continent’s economic growth, sustainable development, and global competitiveness. The Prescient Clean Energy and Infrastructure Funds are not just investment vehicles; it’s a catalyst for positive change in South Africa and beyond. DM/BM

Author: Conway Williams, Head of Credit at Prescient Investment Management

Disclaimer:

  • Prescient Investment Management (Pty) Ltd is an authorised financial services provider (FSP 612).
  • The value of investments may go up as well as down, and past performance is not necessarily a guide to future performance.
  • There are risks involved in buying or selling a financial product.
  • There are representatives acting under supervision.
  • This document is for information purposes only and does not constitute or form part of any offer to issue or sell or any solicitation of any offer to subscribe for or purchase any particular investments. Opinions expressed in this document may be changed without notice at any time after publication. We therefore disclaim any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered as a result of or which may be attributable directly or indirectly to the use of or reliance upon the information.

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African governments must improve the business climate, fight corruption, and invest in infrastructure and human capital, with international support.

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Development in Africa: adopting innovative mechanisms to attract private capital
Listed on: Tuesday, 28 May 2024 19: 30 Category: Economy
NAIROBI (Reuters) - The African Development Bank (AfDB) ’ s Minister of Finance and Governor of Algeria, Aziz Fayed, called on Tuesday in Nairobi, Kenya, for the adoption of “innovative ” mechanisms to bring in more private capital in order to unlock the enormous potential of the African continent.
Speaking at the African Development Bank (AfDB) Governors Dialogue, which is taking place within the framework of the African Financial Commission ’ s 2024 Annual Meetings, Fayed said: “We must develop innovative mechanisms for harnessing private capital, which requires the establishment of financial mechanisms and guarantees to encourage private investment, especially in high-risk sectors. ”
He also stressed the importance of Africa ’ s financial needs amid the complex challenges faced by its countries in the context of climate change, poverty and lack of economic diversification, noting that “despite the efforts made, private investment remains weak with investors hesitant because of the potential risks. ”
"Even though Africa is full of potential, it is often seen through the prism of risk rather than opportunity," he said.
Mr. Fayed also stressed that in order to reverse the picture, African countries must adopt several measures by improving the business climate by facilitating administrative procedures, fighting corruption, strengthening legal security, protecting investors, and developing incentive tax systems.
“We must also invest more in enterprises in order to stimulate economic growth and create an atmosphere conducive to the promotion of public-private partnerships by activating cooperation between the two sectors in order to create and embody development projects, ” he said.
The minister also pointed out that "the countries of the continent are also required to enhance their investment opportunities, exchange successful experiences and encourage access to technology and innovation."
Addressing the role of the African Development Bank (AfDB) in this direction, the minister noted that the "unprecedented" challenges facing the world today necessitate "strategic adaptation".
“The African Development Bank is called upon to be a pivotal actor in Africa ’ s economic transformation through the promotion of inclusive and sustainable growth, particularly through the development of a stronger private sector, ” he said.
The annual meetings of the African Development Bank Group (AfDB), which began on Monday, record the participation of more than 3,000 delegates who came to discuss the reform of the global financial architecture as necessary to accelerate Africa ’ s economic transformation.
The Algerian delegation to this event, which marks the 60th anniversary of the establishment of this African financial institution, is led by the Minister of Finance, the Governor of Algeria at the African Development Bank, Mr. Laaziz Fayed, in his capacity as the representative of the President of the Republic, Mr. Abdelmadjid Tebboune.
Development in Africa: adopting innovative mechanisms to attract private capital
Listed on: Tuesday, 28 May 2024 19: 30 Category: Economy Share

Measuring the success of foreign investments in Africa requires key performance indicators (KPIs) like job quality, climate change, and ESG standards.

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Content: There were 167 press releases posted in the last 24 hours and 192,536 in the last 365 days.

DPI raises one of the largest Africa funds at US$900m to invest in innovation-led companies

Development Partners International (DPI) (www.DPI-llp.com), a premier investment firm focused on Africa, today announced that African Development Partners III Fund (ADP III), has exceeded its US$800 million target, and is set to hold a final close at US$900 million, with an additional US$250m of dedicated co-investment capital. This brings a total of US$1.15 billion for investments on the continent. The fundraising establishes ADP III as one of the largest funds dedicated to investing global capital in Africa.

ADP III will invest in established and growing companies in industries that benefit from Africa’s fast-growing middle class and the increasing digital transformation of the continent. All investments have the highest standards of impact and environmental, social and governance (“ESG”) work. In doing this work DPI is using its proprietary DPI Management System (“DPIMS”) toolkit to deliver impact in line with 10 of the UN Sustainable Development goals, as well as driving the highest standards of ESG.

Runa Alam, co-founder and Chief Executive of DPI commented: “Africa remains an exciting investment destination with positive demographics, rising adoption of technology, and rising consumer and business spending. Against this backdrop, DPI has continued to generate top quartile returns by leveraging our team’s deep-rooted local expertise across the African continent.

“As we look towards the future with our ADP III fund, we will focus on innovation-driven companies leading the digital transformation of the economies in which they operate. In addition, our deep integration of impact and ESG initiatives in the investment life cycle has been widely recognised and ensures we are known as a trusted partner.”

ADP III secured capital from a broad range of leading pension and sovereign wealth funds, development finance institutions, endowment and foundations, insurance companies, fund-of-funds, asset managers, and impact investors. The global investor base represents 20 countries across North America, Europe, Middle East and Africa. In addition to strong support from existing investors, DPI welcomed over 25 new LPs into its investor base. This is testament to DPI’s track record and ability to create institutional-grade investment opportunities in Africa, while continuing to deliver sustained environmental and economic impact.

Joanne Yoo, Managing Director at DPI, said, “The strong support for ADP III validates our strategic focus, creative approach and investment discipline. We are grateful for the trust that our investors have placed in DPI, and we are confident that our talented team will continue to deliver competitive returns and impact.”

ADP III has made four investments to date, including:

  • Channel VAS, a leading global fintech business providing mobile financial services;
  • SICAM, a leading Tunisian tomato producer, in one of the largest private equity transactions undertaken in the country;
  • Kelix Bio, a biopharmaceutical platform broadening access to speciality generic drugs across Africa; and
  • MNT-Halan, Egypt’s leading fintech ecosystem.

Additionally, DPI has a significant pipeline of investment opportunities across the continent, focused on key sectors of the economy such as financial services, healthcare, agri-business, education, and telecom infrastructure.

DPI places an emphasis on promoting best in class standards in ESG through its investments, with the aim of creating institutionalised high-performing companies at exit. Working with its portfolio companies, DPI seeks to contribute to the UN Sustainable Development Goals by implementing its proprietary Impact and ESG Management System based on three key impact themes: Job Quality, Climate Change, and Gender Balance.

ADP III was the first African fund signatory to the Operating Principles for Impact Management (“Impact Principles”), an international market standard for impact investing and the first to be granted 2x Flagship Fund status, as part of the 2x Challenge, a gender-lens initiative.

PJT Park Hill acted as advisor and placement agent for ADP III, and Debevoise & Plimpton LLP served as legal adviser for the Fund.

Distributed by APO Group on behalf of Development Partners International (DPI).

Media Contact: Edelman Email: DPI@edelman.com

London Alex Simmons / Olivia Adebo +44 7970 174 353 / +44 7787 284 441

Africa Kgomotso Moalusi / Chloe Payne +27 73 025 0216 / +27 72 673 0535

New York Tim Quinn +1 646 258 2308

About DPI: DPI is a premier investment firm focused on Africa, that has successfully advised funds through “up” and “down” cycles. Its first two funds, African Development Partners I and II (ADP I and ADP II), are ranked in the top quartile for performance by Cambridge Associates.

DPI has US$2.8bn in assets under management across its funds and committed co-investments.

The ADP funds’ strategy is to build a diversified pan-African portfolio of private equity investments in established and growing companies benefiting from the continent’s fast-growing middle class, innovation, and digital transformation.

Since DPI’s founding in 2007, its funds have invested in 23 portfolio companies across 29 African countries and 17 industries. ADP portfolio companies employ over 49,000 people. During DPI’s investment, 18,000 jobs have been created.

In 2020, ADP III became the first 2X Flagship Fund, as part of the global 2X Challenge (www.2xchallenge.org), committing to integrate a gender lens into its investment process, and reflecting DPI’s long-standing commitment to gender equity. DPI has a female co-founder and CEO, one-third of the partners are women, and 50% of the firm are women.

As a signatory to the UN Principles for Responsible Investment (PRI) and the Operating Principles for Impact Management, DPI promotes high ESG and Impact standards and seeks to contribute to the UN Sustainable Development Goals. This includes the development of an innovative Impact and ESG Management System focusing on the following key impact themes:

Job Quality: SDG 8 Climate Change: SDG 13 Gender Balance: SDG 5

Follow us on the web (www.DPI-llp.com) or LinkedIn (https://bit.ly/3DdPdcH).

Africa offers significant investment opportunities, but also poses challenges and risks that require careful consideration.

Africa's private wealth is projected to reach $3 trillion by 2031, with its Internet economy expected to be 5.1% of GDP by 2025.

Title:

Content: Is Africa a good place to start a business?

Africa is experiencing a technology boom: the rapid penetration of Internet and mobile technologies make this region more and more interesting for IT entrepreneurs, despite the specificity and heterogeneity of the market.

IT in Africa

The African continent is a large market, as well as a source of direct access to a large audience with smartphones and a wide range of resources. The region is rich in coal, oil, ferrous metal ores, graphite, aluminum, and phosphate and consists of 54 countries, extremely diverse in terms of population, digitalization, economy, and purchasing power. Since January 2021, the continent has had a free trade zone between the countries of the African Union.

The market entry threshold is low, there is no fierce competition, and the potential for growth and demand for technology projects is enormous: the region has many problems that can be solved through innovation.

The continent has a crazy rate of Internet development and a native love of smartphones. You can buy bananas on the street and pay with your mobile account.

Students are often interested in starting their businesses. More often than not, students choose completely new locations and new startup ideas. We recommend that you consider Africa for your business because in a few years it will bring you success. But first, we recommend visiting Africa as a tourist to get a feel for the atmosphere. If you got carried away with preparing for a trip to Africa and forgot to write a research paper on time do not panic. After all, it’s no trouble, because a student service will always come to your aid. So if you’re wondering if you can pay someone to write my paper, always go to the WritingAPaper service. Its experts will help with any academic paper, and you will have time for exciting trips.

By 2025, experts predict Africa’s Internet economy should reach 5.1% of GDP – about $185 billion. FinTech, AgroTech, eCommerce, InsureTech, HealthTech, and CleanTech are considered the most in-demand areas.

According to research firm Briter Bridges, venture capital investment in African startups totaled $1.31 billion in 2021, most of which came from fintech projects. Kenya, Nigeria, and Egypt are considered to be the drivers of the region’s venture capital ecosystem: projects from these countries have received the most investment over the past few years compared with their neighbors on the continent. More than 30% of the continent’s technology hubs are concentrated here.

“The GDP of the entire region is $6.8 trillion. If Africa were a single country, it would be fourth in the world after China, the U.S., and India. Undoubtedly, the economic power of the region is still small, but in the next 30-50 years, it is predicted a stable growth in the range of 6-12% per year, and this process will be accompanied by the creation of new industries and businesses.

GDP per capita in terms of purchasing power parity in Africa is $5.2 thousand, for comparison, in the Russian Federation – $29.4 thousand, in the USA – $68.3 thousand, in Europe – about $41 thousand. However, in the top 20 fast-growing economies of the world, six lines are African countries: Benin, Ghana, Ethiopia, Tanzania, Rwanda, and Cote d’Ivoire. The main technological hubs on the continent are concentrated in South Africa, Nigeria, and Egypt.

The level of development of the IT market in Africa is 5-10 years behind other countries. Until now, only 28% of the continent’s population has access to the Internet, but in the last few years, the situation is gradually changing. Now the digital industry in Africa is actively developing, and the international market is noticing this trend.

African Accelerators & Incubators

There are more than 600 technology centers in Africa, among them incubators, gas pedals, and co-working spaces for companies. One of the most famous technology centers is the CcHUB. It is located in Yaba, Nigeria’s Silicon Valley. CcHUB boasts a rich network of 650 startups across Africa.

CcHUB partners with Amazon, and Google for Startups, Visa, and other international companies. The incubator focuses on projects in health, smart transportation infrastructure, fintech, education, and cybersecurity.

Another major center actively developing a technology and innovation startup environment is the MEST incubator in Ghana. Assistance from the Meltwater Foundation allows MEST to target startups from all over Africa at the earliest stages of development, train entrepreneurs for free, and help with product prototyping and hypothesis testing.

MEST is an educational program for IT entrepreneurs, an internal seed fund, and a network of incubators for technology startups in Africa. The hubs are located in Accra, Lagos, Cape Town, and Nairobi. The organization has been active since 2008, actively supporting programmers and engineers. One of the programs lasts a year, is designed for 60 start-ups, and is completely free. MEST has many famous partners, such as the acceleration program for fintech startups supported by the French bank Societe Generale.

In Ethiopia today, three private business incubators are systematically working with technology startups: BlueMoon, iceAddis, and iCog/Solve. The first has more AgriTech, the second has eCommerce startups, and the third has programming, including AI projects.

The iCog/Solve gas pedal hosts Ethiopia Hacks, a series of 12 hackathons in which 600 people have already participated. The project is funded by the U.S. Department of State and the U.S. Agency for International Development, with Google Developers Group (GDG) and the Center for Accelerated Women’s Economic Empowerment (CAWEE) as partners.

Here, with the support of Kenya’s Ministries of Health and Transport, the famous MSafari service was created to monitor the passenger flow of public transport.

The Cape Innovation and Technology Initiative (CiTi) is the oldest technology business incubator on the continent. Located in Cape Town and founded in 1999, it focuses on the development of IT projects. During its existence, it has helped three thousand entrepreneurs to create more than two thousand companies and continues to be actively involved in the Cape Town technology community.

iHub – each year the gas pedal supports 450 startups. The gas pedal has a wide range of programs for business startups. One of them is aimed at the development of IT projects run by women.

Startupbootcamp Afritech – runs several accelerator programs, including ASIP Accelerator Program and iNovo. Project recruitment happens all the time, and there is a virtual and offline passing format. The program is supported by Amazon, Nedbank, PwC, and other large companies. Participants have a chance to receive an investment of 15 thousand euros.

The most specialized technoparks are presented in South Africa – Technopark Stellenbosch, Highveld Techno Park, and The Innovation Hub. Notable technoparks exist in Senegal (Dakar Technopolis), Rwanda (Kigali ICT Park), Madagascar, and Zimbabwe at NUST University.

Africa, with a population of 1.35 billion, could overtake China and India in the next decade. McKinsey estimates that by 2025, the region will have 360 million smartphones and 240 million computers and laptops, and digitalization will increase GDP by $140-320 billion. Not surprisingly, such a large – and still technologically untapped – market is beginning to play an increasingly prominent role in the economic arena.

Thanks to the serious penetration of smartphones and the large percentage of the young population, the African market is becoming a convenient environment for launching and developing technological projects. A large number of fragmented states at different stages of economic development makes it difficult to create a unified startup industry in the region but does not prevent the effective functioning of individual technology hubs with which large international companies are willing to cooperate.

Localization of foreign projects in Africa is complicated by a large language group, corruption, and the specific mentality of the population, but the potential growth opportunities and lack of serious competition more than offset the possible risks.

We are committed to Africa

Unlike many global publications, for nearly a decade we have been committed to showing a complete picture of Africa – not just a single story.  Offended by one-sided coverage of wars, disasters and disease, the founders of Africa.com created a website that provides a balanced view of Africa – current events, business, arts & culture, travel, fashion, sports, information, development, and more.

Will you support us?

The growth of the African middle class and demand for digital services and renewable energy are expected to drive investment, with companies like Google and DP World already investing.

What trends are emerging for African startups in 2022?

Which sectors received the most foreign investment?

Africa needs to address infrastructure gaps, improve its business climate, and invest in human capital to reach its full potential.

The African Development Bank and other organizations are promoting investment and economic growth in Africa through initiatives like the Africa Investment Forum and African Continental Free Trade Area.

Title:

Content: Africa Investments

TICAD8 Official Side Event: Africa Continental Investor Convening: Partnering for SDG Investments in the Green & Blue Economy in Pursuit of…

Date:                 6 September 2022

Time:                 20:00-21:40 (JST), 11:00-12:40 (GMT)

Co-organizers: African Development Bank and United Nations Development Programme

Venue:              Online

Languages:      English /French/ Japanese/ Arabic/ Portuguese

On 6 September 2022, the African Development Bank and the United Nations Development Programme will host an event to showcase investment opportunities in the green and blue economy on the continent, including their potential to drive regional integration. The event will also provide an opportunity to engage with both domestic and international investors seeking to make contributions to realizing the Sustainable Development Goals across Africa.

The event will take place virtually on the sidelines of the 8th Tokyo International Conference on African Development (TICAD8). Mr. Wale Shonibare, Director of the Energy Financial Solutions, Policy and Regulation Department of the African Development Bank, will join a panel discussion on investments in the green & blue economy in pursuit of regional integration and the African Union’s Agenda 2063.

TICAD8 was held on 27 and 28 August 2022 in Tunis, where Japanese Prime Minister Fumio Kishida announced that Japan will invest up to $30 billion over three years to support further development in Africa. The government of Japan and the African Development Bank announced financial cooperation worth $5 billion under the fifth phase of the Enhanced Private Sector Assistance for Africa initiative from 2023 to 2025, to reinforce development and green growth.

The African Development Bank seeks to promote strong, shared and sustainable growth in Africa. In 2015, five Bank Group priorities, known as “the High 5s”, aligned with the 2013-2022 Strategy, were set out. These are: Light up and power Africa; Feed Africa; Industrialize Africa; Integrate Africa; and Improving the quality of life for the people of Africa. All efforts regarding the High 5s will help Africa achieve close to 90% of the Sustainable Development Goals.

The UN Development Programme, having a long track record of working in public finance and private sector development, is well positioned within the UN system to advance financing for the Sustainable Development Goals. UNDP has seen a growing demand from partners to scale up its work around public finance, as well as private sector engagement, development, and finance issues.

Please click here to register.

African Development Bank Group

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These initiatives aim to promote economic integration and stability in Africa by improving the business climate and mobilizing private investment.

African governments, foreign investors, and international organizations must collaborate to promote investment and economic growth in Africa, a complex issue with both opportunities and challenges.

Africa can become more prosperous and stable by improving its business climate, investing in infrastructure and human capital, and promoting economic integration.

KPIs like ESG standards can help measure the success of foreign investments in Africa and ensure sustainable growth.

Africa offers significant opportunities for foreign investment and can become more prosperous with the right policies.

What trends are emerging for African startups in 2022?

The African Continental Free Trade Area (AfCFTA) aims to promote economic integration by creating a single market for 1.3 billion people in Africa.

The AfCFTA is expected to increase Africa's GDP by 0.5% by 2045, lift 30 million out of poverty by 2035, and eliminate tariffs on 90% of goods and services.

The AfCFTA is expected to increase Africa's real income by 7% by 2035.

The AfCFTA's implementation faces challenges like inadequate infrastructure, corruption, and political instability.

African governments and international organizations are addressing these challenges through initiatives like the Africa Investment Forum and African Continental Free Trade Area.

These initiatives aim to promote economic integration and stability in Africa by improving the business climate and mobilizing private investment.

Africa received $83 billion in foreign direct investment in 2021, with major investments in Egypt, South Africa, and Nigeria.

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.

What was the total FDI inflow to Africa in 2022 and how did it compare to 2021?

$45 billion, which was down from $80 billion in 2021

Africa's FDI inflows are expected to grow 5% in 2021, boosted about 25% by the AfCFTA.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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The AfCFTA is expected to increase intra-African trade by 34% and lift 30 million people out of extreme poverty by 2035.

Africa still faces challenges like corruption and inadequate infrastructure that hinder FDI and economic growth.

African governments must improve the business climate, fight corruption, and invest in infrastructure and human capital, with international support.

What trends are emerging for African startups in 2022?

Which sectors received the most foreign investment?

The African Internet economy is expected to reach 5.1% of GDP by 2025, with $1.31 billion invested in startups in 2021.

The growth of the African middle class is expected to drive investment in digital services and renewable energy, with companies like Google and DP World already investing.

What trends are emerging for African startups in 2022?

Which sectors received the most foreign investment?

Africa needs to address infrastructure gaps, improve its business climate, and invest in human capital to reach its full potential.

These initiatives aim to promote economic integration and stability in Africa by improving the business climate and mobilizing private investment.

Africa can become more prosperous and stable by improving its business climate, investing in infrastructure and human capital, and promoting economic integration.

KPIs like ESG standards can help measure the success of foreign investments in Africa and ensure sustainable growth.

Africa offers significant opportunities for foreign investment and can become more prosperous with the right policies.

What trends are emerging for African startups in 2022?

The African Continental Free Trade Area (AfCFTA) aims to promote economic integration by creating a single market for 1.3 billion Africans.

The AfCFTA is expected to increase Africa's GDP by 0.5% by 2045, lift 30 million out of poverty by 2035, and eliminate tariffs on 90% of goods and services.

The AfCFTA is expected to increase Africa's real income by 7% by 2035.

The AfCFTA's implementation faces challenges like inadequate infrastructure, corruption, and political instability.

These initiatives aim to promote economic integration and stability in Africa by improving the business climate and mobilizing private investment.

Africa received $83 billion in foreign direct investment in 2021, with major investments in Egypt, South Africa, and Nigeria.

What was the total FDI inflow to Africa in 2022 and how did it compare to 2021?

$45 billion, which was down from $80 billion in 2021

Africa's FDI inflows are expected to grow 5% in 2021, boosted about 25% by the AfCFTA.

The AfCFTA is expected to increase intra-African trade by 34% and lift 30 million people out of extreme poverty by 2035.

The AfCFTA is expected to increase intra-African trade by 34% and lift 30 million people out of extreme poverty by 2035.

The AfCFTA is expected to increase intra-African trade by 34% and lift 30 million people out of extreme poverty by 2035.