Foreign direct investment (FDI) in Africa has seen significant variability in recent years.

In 2021, the continent attracted a record $83 billion in FDI, more than twice the $40 billion recorded in 2020, but inflows fell to $45 billion in 2022, comprising about 3.5% of global FDI activity.

These swings reflect sensitivity to global economic shocks and regional dynamics, though Africa remains a region of substantial growth potential, particularly as regional trade agreements and reforms take hold .

The vast majority of FDI has concentrated in a handful of countries.

Nigeria, South Africa, Egypt, and Kenya account for around 90% of the continent’s capital investment, making them the primary destinations for foreign investors.

Morocco is increasingly recognized for its business-friendly climate, especially in clean energy investment.

Other nations gaining attention include Ghana and Mauritius; Ghana is emerging as a tech and financial hub, while Mauritius is considered the top sub-Saharan African economy for ease of doing business .

Regionally, West Africa has led in high-value investment deals from 2019 to 2023, followed by East Africa, North Africa, and Southern Africa, with Central Africa attracting the least.

West Africa logged 246 deals over $1 million, East Africa 175, North Africa 160, Southern Africa 147, and Central Africa only 14 during this period.

These numbers underscore both the dominance of a few economic regions and growing investor flexibility in response to changing macroeconomic and political environments .

Innovation-focused investments target Kenya, Nigeria, and Egypt, which together host more than 30% of Africa’s technology hubs, nurturing start-up growth and entrepreneurship.

South Africa maintains significant strength in IT and advanced business services.

Elsewhere, countries like the Democratic Republic of the Congo and Uganda have experienced unexpected surges in start-up funding, indicating a slow but meaningful diversification of investment destinations .

Industry trends reflect the evolution of Africa’s economic landscape.

The longstanding appeal of oil, gas, mining, and financial services continues, but new momentum is evident in renewable energy, tech, digital finance, and infrastructure.

Greenfield investments in Africa’s energy and gas sector soared from $24 billion in 2021 to $120 billion in 2022.

The construction sector attracted $24 billion, and extractive industries received $21 billion during the same period.

The ICT sector reported the highest number of new projects amid Africa’s digital revolution .

Renewable energy has become a central focus for FDI.

Countries across the continent are targeting ambitious green energy benchmarks: Ghana aims for 1,363 MW by 2030, Angola wants a 70% renewable energy share by 2025, Senegal targets 30% by 2030, and Mozambique already generates over 80% of its energy from hydropower.

Morocco is developing a $20 billion wind energy project for export to the UK, while Mauritania and Namibia are investing in large-scale green hydrogen capacity .

Africa’s mineral wealth, essential for energy transition technologies, is also drawing renewed attention.

The Democratic Republic of the Congo is the leading global producer of cobalt (70% in 2019), while Zambia is a major copper supplier, Zimbabwe is prominent in lithium and platinum, and South Africa remains important for platinum, gold, and diamonds.

The rising need for electric vehicles and batteries underpins investment in these sectors .

Digital finance is another growth area.

With revenues projected to reach $30 billion by 2025, fintech investment in Africa continues to climb, spurred by a young population and rapid adoption of mobile financial services.

Similar trends are seen in agri-tech, advanced manufacturing, logistics, and healthcare technology; for example, imports of medical devices in Southern Africa are projected to reach $1.8 billion by 2023 .

Foreign investor profiles vary by region.

The UK and France are leading European investors, focusing on oil, gas, mining, and financial services, with $65 billion and $60 billion in investment stock, respectively, as of 2020.

China is unmatched in infrastructure, building over 10,000 km of railways, 100,000 km of roads, and hundreds of ports and industrial parks across Africa.

Gulf states, especially Saudi Arabia and the UAE, recently pledged $22 billion for investments primarily in North African real estate and energy—e.g., the UAE's Reportage $1.5 billion project in Egypt .

Recent high-profile partnerships include the $20 billion Morocco-UK Xlinks power line, the UAE’s ADQ acquiring stakes in Egyptian firms, Kelix bio’s $150 million pan-African pharmaceutical platform, and UK-backed fintech startup Moove.

African entities are increasingly engaging in such strategic alliances, leveraging Special Economic Zones in places like Mauritius and Rwanda for technology-related industries .

Looking forward, initiatives like the African Continental Free Trade Area (AfCFTA) promise to spur investment by creating a market of 1.3 billion people and a combined $3.4 trillion GDP, which is expected to benefit automotive, agriculture, pharmaceuticals, and logistics.

Demand for healthcare, advanced consumer goods, and food processing also represents substantial opportunity .

In summary, Africa’s FDI landscape is shaped by substantial flows into traditional and high-growth sectors in a select group of leading countries, though diversification is underway.

Robust engagement by European, Chinese, and Gulf investors is matched by the rise of local startups and regional partnerships.

These trends, strengthened by economic integration and reform, point to expanding professional opportunities for graduate talent—particularly in new sectors and cross-border business—across the continent .

Foreign direct investment (FDI) in Africa has seen significant variability in recent years.

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

In 2021, the continent attracted a record $83 billion in FDI, more than twice the $40 billion recorded in 2020, but inflows fell to $45 billion in 2022, comprising about 3.5% of global FDI activity.

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

These swings reflect sensitivity to global economic shocks and regional dynamics, though Africa remains a region of substantial growth potential, particularly as regional trade agreements and reforms take hold .

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Content: Japan, Korea and India experience to expand Africa, Taiwan and Africa entrepreneurs association
The “Taiwan-Africa Entrepreneurs Association ”, commissioned by the International Trade Bureau of the Ministry of Economic Affairs, attracted more than 130 enterprises interested in exploring the African market. The exhibition and consultation desk at the representative office showed that our company's desire to expand the African market is very hot.
The theme of the event was “The Key to Success for Foreign Investors (Japan, Korea and India) in Expanding Africa ”. The event was addressed by Wang Ximeng, Secretary General of the Foreign Trade Association, Liu William, Deputy Director of the Bureau of International Trade of the Ministry of Economic Affairs, Msibi, Ambassador of the Kingdom of Swaziland, and Chen Shu-fang, President of the Association of Taiwan Commerce. In addition, Hung Sheng Packaging General Manager Tang Jung-hung, Yi Ho Industrial General Manager Fu Yang-li, and Nam Wei Industrial Strategy Director Yang Wei-han analyze the development opportunities in Africa from their practical experience in the packaging, building materials, and textile industries.
Wang Ximeng, secretary general of the Foreign Trade Association, pointed out that in addition to the competition between Europe, America and China over the layout of the African continent, Japan, South Korea, India and other countries in Asia are committed to increasing investment and economic cooperation in Africa.
There are more than 1.3 million people of Indian descent in Africa, such as in East Africa, where more than 60% of the economic lifeline is controlled by Indians.
In addition, 18 of India's 25 newly established embassies and consulates are located in Africa, and India has become the fifth largest investor in Africa, while Japanese automobile manufacturers Toyota, Nissan, and electrical appliance giant Toshiba have already planted flags in Africa; South Korea's Hyundai, Samsung, LG and other large enterprises have also been stationed in Africa.
Through this event, we hope to help our business people to learn from foreign companies such as Japan, Korea and India, as well as African market leaders, and shorten the path to enter the African market.
Liu, deputy director of the International Trade Bureau, said that in recent years, the global economy has continued to be volatile due to changes in the international situation such as Sino-US trade frictions, global inflation, and the Russian-Ukrainian war, but Africa has shown great resilience during this period.
In addition, foreign direct investment in Africa reached US $45 billion in 2022, which has returned to the pre-epidemic level, indicating that confidence in investment in Africa has gradually recovered. In 2022, the total import and export value of Africa reached a new high in recent years, with imports reaching US $694.5 billion, up 14%, and exports reaching US $661.4 billion, up 19%. It is hoped that through the activities of the association, upstream and downstream companies in various industries can learn from each other and share their experiences, and work together to promote Taiwan-Africa economic and trade relations.
The event will be held in conjunction with AGOA, a major textile manufacturer in South China, and the representative offices of African embassies in Taiwan, Africa-related associations, and import and export banks providing trade and financial services. For more information, please visit africa.taiwantrade.com for more information.

The vast majority of FDI has concentrated in a handful of countries.

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Content: In the session "Different Types of Financing Private Sector Projects"
90% of funding in Africa is dominated by Nigeria, South Africa, Egypt and Kenya
Walid Al-Murshed: Green economy needs to invest $23-billion by 2023
Sharm El-Sheikh, Arab Republic of Egypt: Participants in the “Different Types of Financing Private Sector Projects ” session held at the Islamic Development Bank Group in Sharm El-Sheikh, Egypt, expected further growth and diversification of Islamic financing mechanisms in various known and innovative forms, such as green sukuk and others, as the United States expands licensing of new financing mechanisms.
Dr. Abdul Qader Thomas, CEO of Shape Economic Consultancy, Dr. Iqbal Daridia, Advisor to the CEO of the Islamic Corporation for Private Sector Development, Iman Wahbi, General Partner of the Africa Growth Fund, and Waleed Al-Murshed, Representative of the International Finance Corporation (IFC) Saudi Arabia, spoke during the session.
Dr. Abdul Kader Thomas, CEO of Shape Economic Consultancy, said that there are some problems and constraints related to growth capabilities, most of which are related to the awareness of customers, as they do not fully know the nature of financing products, despite the large number of service providers from banks.
He added that the coming years will see the US currency regulator allow speculative forms, and a fourth bank will receive the license, which will have a positive impact on emerging markets in Africa, the Middle East and Asia.
Dr. Iqbal Daridia, Advisor to the CEO of the Islamic Corporation for Private Sector Development, explained that with regard to sukuk laws, double taxation has been abolished in some countries, and this has been done in Bangladesh, so the obstacles of capital markets must be removed, especially as Islamic finance calls for great attention to ethics.
He pointed out that if there is a possible deficit, we sit with the issuers, and we can extend the period of the instrument or grant a grace period during which nothing is paid, but if the problem is greater than that, resort to the trust fund for the sukuk to grant traders their rights.
Looking at the poor countries, we will find that about 90% of the capital in Africa is dominated by Nigeria, South Africa, Egypt and Kenya only, but there are many countries with great experience in the business growth environment such as Morocco.
Fintech has mobilized 60% of capital in Africa, the Middle East and North Africa.
Africa attracts many investors with the expectation of a lot of capital from abroad from the GCC countries, or from Malaysia, and for a long time multilateral banks have talked about regional integration.
Waleed Al Murshed, IFC Saudi Arabia, said: “Green sukuk hold a lot of opportunities, and more than $23 billion is needed until 2023 to invest in climate and green economy.
We are putting in place the infrastructure for sukuk issuance, and I call on everyone to cooperate to create Islamic capital markets.
I stress that pension funds should start focusing on sukuk, allowing for diversification of business. ”
“Green bonds have been around for a long time, while green bonds were introduced only five years ago to take into account the financing of green projects.
In 2004, the first green bond was issued in Malaysia and this year the first green bond was issued in Egypt with CIB, and $150 billion in the last 5 years has been invested and there is a need for Islamic finance concentrated in the Middle East.
Eman Wahbi, general partner of the Africa Growth Fund, recommended the need to provide technical support to SMEs and stressed the need for specialized agencies to help startups in member countries, as access to finance is not the only problem facing entrepreneurs.
# Government Data
- Done.

Nigeria, South Africa, Egypt, and Kenya account for around 90% of the continent’s capital investment, making them the primary destinations for foreign investors.

Morocco is increasingly recognized for its business-friendly climate, especially in clean energy investment.

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

Other nations gaining attention include Ghana and Mauritius; Ghana is emerging as a tech and financial hub, while Mauritius is considered the top sub-Saharan African economy for ease of doing business .

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Content: Optimists talk about Africa as the next economic frontier

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BY DELIA DE VILLIERS

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

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

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

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

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

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

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

Picking your next market is key

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

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

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

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

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

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

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

Beyond the obvious

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

These are among the main reasons.

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

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

Embracing innovation

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

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

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

BUSINESS REPORT

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Regionally, West Africa has led in high-value investment deals from 2019 to 2023, followed by East Africa, North Africa, and Southern Africa, with Central Africa attracting the least.

West Africa logged 246 deals over $1 million, East Africa 175, North Africa 160, Southern Africa 147, and Central Africa only 14 during this period.

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Content: In 2023, standards became higher than ever for global tech. Customers want to be able to buy something in two clicks but still need in-person customer service. Workers want to work digitally, ideally from a beach somewhere, while maintaining a connection with their colleagues. And the truth is these standards are unlikely to get lower soon.

In Africa, the tech scene hasn’t been any less dramatic. It was, in many ways, a market correction. Several startups shut down, while many others survived by bone-deep cost-cutting or mergers and acquisitions. Founders and investors have gone from chasing Silicon Valley-esque growth to seeking a balance with the African market. Between 2020 and 2023, African tech went from the “peak of inflated expectations” point to the “plateau of productivity” side of Gartner’s hype cycle.

Now, what’s next? That’s what everyone wants to know as we enter a new year. Predicting the future is hard and risky. But it’s even harder in the digital tech industry because, as we’ve seen in the past three years, things change fast and dramatically. However, 2023 gave several pointers to trends we should all pay attention to in the new year.

Crypto/Web3

2022 was a rough year for the crypto market. Everything went wrong, from Terra’s downfall to FTX’s scandal. But 2023 was a lot better as Bitcoin ended the year over 150% higher than where it started. The Solana blockchain also made a dramatic comeback, with its token rising over 1000%.

Why does this matter? Because price is still the main driver of the crypto ecosystem. Funding pours into startups when prices are high and dry up when prices are low. It also means the hype bubble will likely return because markets become irrational in the face of high prices.

Africa is the fastest-growing cryptocurrency market among developing economies, primarily because people seek to hedge against inflation. Young people are drawn to low-barrier opportunities to generate wealth, which is crypto’s biggest use case today.

Africa’s regulatory environment is also slowly buying into crypto. In December, Nigeria’s central bank lifted a ban on cryptocurrency transactions, saying global trends had shown a need to regulate such activities.

Artificial intelligence

AI has become the rave of the moment, thanks to OpenAI’s breakthrough with ChatGPT. The chances that an image or text you see on social media are products of generative AI are higher than ever. Every big tech player is in the race for AI dominance. Google launched Gemini in December, a few weeks after Elon Musk’s xAI launched Grok, another ChatGPT competitor.

One in every four dollars that went into the pocket of an American startup was related to AI, per Crunchbase data. According to McKinsey data, AI startups garnered over five times as much funding in the first half of 2023 as they did over the same period in 2022. Global demand for talent in this section also spiked in 2023. LinkedIn job postings that mention AI or generative AI have more than doubled since 2021.

In Africa, we are seeing more startups either focus on AI or apply it to their processes. For instance, OnePipe, a Nigerian fintech, uses artificial intelligence for fraud detection and prevention and biometric verification for customer KYC implementation. It also uses natural language processing for conversational transactions. Nokwary, a Ghanaian startup, uses speech recognition and conversational user interfaces to enable visually impaired people and those who can’t read and write to interact with banking apps and systems through spoken commands.

The biggest challenge to an AI boom in Africa is data. However, this poses a huge opportunity for research and data collection companies in the continent.

Mergers and Acquisitions

Many startups shut down between 2022 and 2023, either because they couldn’t raise more cash or because tough economic times got the better of them. But that wasn’t the only trend that emerged. Many others survive by getting acquired. Nearly 70 acquisitions have happened between 2022 and 2023, according to data from The Big Deal and BD Funding Tracker. Some notable deals were Risevest and Chaka, BioNTech and InstaDeep, Bitmama and PayDay, and FairMoney and PayForce.

Mergers and Acquisitions will likely remain a trend for as long as valuations are low. Over the last two years, startups have been more cautious about bloating their valuations, and investors have kept the same sentiment. It’s partially why we haven’t recorded new unicorns in a minute. MNT-Halan was the only new entrant in the last two years.

This also creates an opportunity for African startup marketplaces, which will replicate Acquire.com to make acquisition easy for startups with solid products but low clout.

International work for Africans

Many African countries saw their currencies devalued in 2023. Inflation rates have also spiked in many economies. This creates a stronger appeal for them to earn foreign currencies and an [almost worrisome] opening for Westerners to find cheap labour in Africa. This is crucial because wage rates are rising in China and India, making it increasingly expensive for companies to outsource services there.

Studies by Bloomberg show that China’s upper-middle class now dominates, with over 200 million urban households having disposable incomes of $16k — $34k. Meanwhile, many Sub-Saharan economies have seen their middle-class shrink in recent years.

Also, there aren’t enough opportunities for young people to work remotely in Africa. Ten to twelve million young Africans enter the labour market each year, and an estimated one-third of the 600 million young people entering the global market by 2030 will be young Africans.

This trend will create opportunities for new approaches to apprenticeship or employment matching. It also means startups focused on building tech talent will likely see growth in 2024.

New regional preferences

In 2024, investors could reevaluate their regional strategies in response to changing macroeconomic and political conditions. Per the EIU, fifteen African countries have elections next year, and investors will observe their outcomes keenly. Elections are fraught with risk, especially in regions where armed conflict is rampant. The EIU notes that elections in Algeria, Egypt, Ghana, and South Africa will add to political risk, which could have long-term implications on where investors put their money.

An AVCA survey revealed that LPs favoured investing in West Africa while GPs leaned towards East Africa. The data aligns with this: between 2019 and 2023, per The Big Deal, there were over 700 recorded deals worth $1m or more. West Africa led the pack with 246, East Africa with 175, Northern Africa with 160, Southern Africa with 147, and Central Africa with 14. Depending on the degree of confidence, the numbers could realign with investors becoming more risk-averse. It’s all “wait and see” going into 2024.

Elsewhere on Ventures

These numbers underscore both the dominance of a few economic regions and growing investor flexibility in response to changing macroeconomic and political environments .

Title:

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

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

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

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

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

Fintech sector

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

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

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

Risk premium

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

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

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

Picture: 123RF

Innovation-focused investments target Kenya, Nigeria, and Egypt, which together host more than 30% of Africa’s technology hubs, nurturing start-up growth and entrepreneurship.

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.

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What trends are emerging for African startups in 2022?

South Africa maintains significant strength in IT and advanced business services.

Which sectors received the most foreign investment?

Elsewhere, countries like the Democratic Republic of the Congo and Uganda have experienced unexpected surges in start-up funding, indicating a slow but meaningful diversification of investment destinations .

Title:

Content: Stories
Congo, Iraq, Uganda and Bangladesh show unexpected growth in investments in start-ups
Stories
Elena Likhanova
Senior Editor RB.RU
Elena Likhanova
In the vast majority of cases, funded startups are grouped in countries that are easy to do business.
They are rarely seen in regions where it is difficult to start new businesses.
And that ’ s why it ’ s so interesting to find that in a place like this, startup funding can grow.
The Crunchbase platform studied such locations and shared unexpected conclusions.
Congo, Iraq, Uganda and Bangladesh show unexpected growth in investments in start-ups
It turns out that seed and venture capital investments cover more and more corners of the globe.
For simplicity, four countries were chosen that have never been the centers of attraction for startups, but are seeing a sharp increase in funding.
For this purpose, the World Bank rating of 190 best and worst countries for doing business and Crunchbase data were used.
Democratic Republic of the Congo
It is the largest country in sub-Saharan Africa, home to about 108 million people.
It is a country with a tragic colonial history that has spent several turbulent decades under the leadership of strong leaders.
Despite the fact that this country is huge and rich in natural resources, it has never been easy to make a living or build a business here.
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But Congo is too big a territory for startups to ignore completely.
According to Crunchbase, local startups have received about $10.4 million in investments since 2021.
While these numbers don ’ t look as impressive, it ’ s a leap from previous years.
Thus, according to Crunchbase, for the decade from 2010 to 2020, Congolese companies attracted only $1.2 million of pre-seed investments.
One of the largest recipients of funding in recent years is Altech Group, a supplier of solar energy and eco-friendly cookstoves.
The company raised $1.5 million in equity financing with the support of social investor SIMA Funds, as well as $7.1 million in debt financing.
Another $37.5 million this year went to Jambo, an African Web3 superapp whose founders were born in Congo.
In May, the company closed a $30 million round led by investment company Paradigm, focused on cryptocurrencies.
It is unclear if Jambo is also present in the Congo.
Iraq
Iraq is hardly the center of technological start-ups.
According to Crunchbase, from 2010 to 2020, local projects received about $2 million in venture and seed funding.
Recently, however, the situation has been gaining momentum.
Since 2021, startups from Baghdad have raised at least $13.7 million in equity funding.
There is even a special fund, Iraq Tech Ventures, which says it focuses on “diversifying Iraq ’ s economy from oil to more sustainable sectors such as technology. ”
RB recommends the best digital solution providers for your business
Most recently, the most significant funding went to Bely, an app to call a taxi from Baghdad, closing the $10.5 million round.
Food delivery startup Alsaree3 raised $3.2 million
Uganda
Uganda ’ s population is said to be the youngest in the world, with an estimated 45% of its inhabitants under the age of 15.
Only 2% of people in this country are over 65 years old.
Apparently, part of this youthful energy is being translated into startups.
Crunchbase notes that since 2021, at least 20 startups from Uganda have raised seed, venture or debt financing and collectively raised more than $40 million.
For comparison, over the entire decade from 2010 to 2020, Ugandan startups received less than half of that amount.
The most famous of the local projects is Tugende, a startup from Kampala that offers financing and services for small businesses and sole proprietors who want to own income-generating assets such as motorcycles and cars.
According to Crunchbase, Tugende has raised $22 million in equity financing and $27 million in debt financing to date.
In June, the company also announced an undisclosed size round.
And in March, telemedicine solution provider Rocket Health Africa closed a $5 million Series A round.
The company, based in Kampala, offers medical consultations on a smartphone, collection of laboratory samples and delivery of medicines.
Bangladesh
With a population of 170 million people, Bangladesh is the eighth most populous country on Earth.
However, in terms of land area, Bangladesh ranks 94th, which means that it is also one of the most densely populated countries in the world.
Despite geographical difficulties, the natives of the country are industrious, which over the past decade has allowed it to become one of the fastest growing economies in the world.
This has led to a sharp rise in investment in start-ups, many of which create goods and services for consumers and businesses in the domestic market, as well as export-oriented businesses.
Crunchbase has data on nearly 100 rounds of different stages involving startups from Bangladesh that have closed since last year, collectively raising more than $230 million.
Most of that money went to one company: Dhaka based ShopUp, a small business B2B trading platform that raised more than $200 million in venture capital investments.
Other major rounds are dominated by e-commerce, logistics and delivery.
Source.
Cover photo: GR.Stocks / Shutterstock
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What trends are emerging for African startups in 2022?

Industry trends reflect the evolution of Africa’s economic landscape.

The longstanding appeal of oil, gas, mining, and financial services continues, but new momentum is evident in renewable energy, tech, digital finance, and infrastructure.

Title:

Content: « Money » monitors the forecasts of economic analysts for foreign investment flows in the current year
A number of them predicted it would reach $10 billion.
Samar Al-Sayed
Praying for Mahmood
6: 59 AM, Wednesday, 27 Jul 22
Wael Ziadeh: The Russian-Ukrainian war is an opportunity for the Egyptian stock exchange to attract more capital
Esraa Ahmed: Clean energy, infrastructure and digital financial services are the most attractive sectors
Hani Geneina: Companies should be encouraged to reinvest their profits instead of transferring them to parent entities abroad
Naaman Khaled: Most of the money will come from Gulf markets
The Egyptian government aims to increase foreign direct investment flows, especially the Gulf, in the local market in the coming period, in light of the repercussions of the Russian-Ukrainian war on the global and local economies, and a number of analysts and macroeconomic experts estimated the value of these investments to reach $10 billion, driven by various factors, including the decline in the stock prices of companies on the stock exchange, and the exchange rate of the pound against the dollar.
The latest report issued by UNCTAD in June on the volume of foreign investment flows in 15 African countries last year showed that Egypt ranked second in the list, recording the volume of flows about 5.122 billion dollars compared to 5.852 billion in 2020 compared to 9.010 billion in 2019.
South Africa came first last year with a 1,235% jump in investment inflows of $40.889 billion compared to $3.062 billion in 2020 and $5.125 billion in 2019.
Wael Ziadeh, founder and CEO of Zela Capital, said that the Russian-Ukrainian war had negatively affected foreign direct investment flows in the world, while inter-state assistance had increased to counter the negative consequences of the war.
He explained to Al-Mal that these negative effects included the exit of investment flows from some emerging countries, which led to the impact of their trade balance, especially as their imports of food and oil more than their exports, for example Turkey and many European countries, as well as Sri Lanka.
On the other hand, the war represents a positive area for these countries, especially in activating the stock market sector, he said, adding that in this context, the Egyptian Exchange has opportunities to attract more foreign investments in the coming period.
He predicted that Egypt will take no more than six months to recover its trade balance once the war is over, as the prices of petroleum products and food will fall rapidly, as they rose rapidly after the outbreak of the war.
The objectives of the Egyptian government published in July 2021 in the second and final review report of the Credit Standby Arrangement Program signed with the International Monetary Fund, amounting to about $5.4 billion, indicated that the percentage of net foreign direct investments of GDP will rise to 2.5% in the current fiscal year compared to 2% in the last fiscal year, adding that it recorded 1.4% in the fiscal year 2021 / 2020, 2% in 2019 and 2.6% in 2019. / 2018.
These targets pointed out that the proportion of net foreign direct investment will jump to 3% of GDP in the fiscal year 2025 / 2024 compared to 2.9% in 2023 / 2024.
The government also expected in the report to increase the volume of foreign direct investment flows in the local market to about 11.7 billion in the current fiscal year against 8.6 billion dollars in the last fiscal year 2022 / 2021 to rise to 14.9 billion in the next fiscal year (2023 / 2024) and 16.5 billion in 2025 / 2024.
According to the Central Bank of Egypt ’ s forecasts issued in its statistical bulletin for May, the proportion of net foreign direct investment in GDP declined to about 1.3% in the fiscal year 2020 / 2021 compared to 2% in the fiscal year 2019 / 2020, adding that it was 2.7% in the fiscal year 2018 / 2019 and 3.1% in the year 2017 / 2018.
Economist Hani Geneina predicted that the value of net foreign direct investments in the local market will exceed 10 billion dollars in the coming period, due to several different factors, including the decline in the prices of shares of companies in the stock exchange and the exchange rate of the pound against the dollar.
However, Egypt was the second largest recipient of foreign direct investment in the African continent, he said, adding that recent pledges from Gulf countries to invest about $22 billion in various sectors will boost foreign direct investment in the future.
The number of new green projects in Egypt has more than tripled to $5.6 billion, according to the UNCTAD report, pointing out that for example, the UAE real estate company Reportage announced a real estate project worth $1.5 billion.
According to the report, the volume of foreign direct investment flows to North Africa declined by 5% to $9.3 billion last year.
Geneina told Al-Mal that the flows of foreign direct investments to the markets are divided into three types, the first is the acquisition of one company on another by more than 10%, pointing out that this investment happened last fiscal year, such as the acquisition of the UAE Holding “ADQ ” on several Egyptian companies, pointing out the importance of this type of investment, but it is not very useful in the list of foreign investments.
This type of rapid investment is encouraged by the decline in both stock prices on the stock exchange and the exchange rate of the pound against the dollar, as well as the recent government stimulus measures that included the implementation of the state ownership document.
The document of state ownership announced by the government in mid-June revealed the most prominent sectors that will witness the stabilization or reduction of government investments (while allowing the participation of the private sector), a number of activities in the transport, education, mining, real estate, electricity, telecommunications and sports sectors.
Geneina said that the second type of flows is the reinvestment of a foreign company present in the market for its profits again, pointing out that this type is classified in the balance of payments as foreign direct investments.
He added that the most prominent local sectors that will go to this type of investment is oil and gas, due to the high value of its profits achieved last fiscal year, and will therefore reinvest its large financial surpluses during the current fiscal year.
He pointed out that the third type of investment is the most difficult, which is the establishment of a new company or project from the beginning, and the employment of new workers, pointing out that for example, Dana Gas announced that it will expand its operations implemented in the local market.
This area is likely to witness an increase during the current fiscal year, especially in the oil and gas sectors and related sectors, namely petrochemicals and fertilizers, especially by Gulf investments in light of the features announced recently by the government, namely the state ownership document, the gold license, as well as the large financial surpluses they have, which motivates them to invest in the local market.
In mid-May, Prime Minister Mostafa Madbouly announced a number of concessions on the industrial sector, most notably the issuance of the golden license for some projects, pointing out that it will be granted once and include three areas as a start, namely green hydrogen, electric car manufacturing and infrastructure, seawater desalination projects and renewable energy.
Geneina stressed the importance of the government encouraging foreign companies to reinvest their profits in the local market instead of transferring them to parent companies abroad by providing incentives to urge them to take this step.
According to the latest UNCTAD report, Mozambique ranked third in the list of foreign investment flows to 15 African countries last year, and its inflows rose by 68% to $5.102 billion compared to $3.035 billion in 2020, while it recorded 2.212 billion in 2019.
Nigeria ranked fourth on the list, attracting inflows of 4.844 billion over the past year, an increase of 103 percent from the previous year, the data added, adding that it recorded 2.385 billion in 2020 and 2.305 billion in 2019.
Ethiopia followed in fifth place, and foreign direct investment inflows increased last year by 79% to $4.259 billion compared to $2.381 billion in 2020.
In the sixth place came « Congo » with the volume of flows of $3.691 billion, a decline of 8% from its value in 2020, and recorded 4.016 billion dollars, followed by Ghana in the seventh place in the list and increased flows by 39% to reach 2.614 billion dollars during 2021 compared to 1.876 billion in 2020.
According to data from the UNCTAD list, foreign direct investment flows in Senegal jumped by 21% to 2.232 billion against 1.846 billion dollars in the previous comparison period.
According to the report, the value of flows to Morocco increased by 52% last year to $2.153 billion, and a major international financing deal was announced there, a $20 billion construction project for a 3,800km transmission line to the UK with a capacity of 3.6 gigawatts, sponsored by English company Xlinks.
The Democratic Republic of the Congo ranked 10th on the list, with investments up 14% to $1.870 billion compared to $1.647 billion in 2020.
Gabon came in eleventh place, with direct investment flows falling by 5% last year to record 1.635 billion dollars compared to 1.717 billion in 2020, followed by Uganda, with flows rising by 31% to 1.142 billion dollars compared to 874 million in 2020.
Tanzania ranked 13th, with foreign investment up 35 percent in 2021 to $922 million compared to $685 million in 2020.
According to the bulletin, investment flows in Algeria decreased by 24% last year to $870 million compared to $1.143 million in 2020, pointing to the decline of investments in Tunisia to $660 million compared to $652 million in 2020 to be ranked 15th.
Esraa Ahmed, a macro-economic analyst at the investment bank “Ahly Pharos ”, agrees with Geneina ’ s opinion as she expects the volume of net foreign direct investment in Egypt to rise to about $10 billion during the current fiscal year (2022 / 2023), up from levels that will not exceed $7 billion in the fiscal year ending 2021 / 2022.
She added that this rise is driven by the Gulf investment flows that have been announced recently, and the acquisition deals that we see are witnessing activity during the current period.
There are other factors that may prevent net foreign direct investment from rising to larger numbers in the near future due to the continuation of the war in Ukraine and its repercussions on the global economy.
According to Ahmed, these factors are the economic situation of the European Union, which is an important partner for Egypt in terms of trade and investment, in addition to the general reluctance globally to risk starting new projects, and the prevailing outlook for emerging markets and the risks of their currencies.
On the sectors that may witness foreign inflows during the coming period, she said that the most prominent of them are clean energy, new infrastructure driven by the expansion of the state in this field, in addition to digital financial services, and some branches of manufacturing industries.
For his part, Numan Khalid, a macro-economic analyst at Arqaam Capital, said that the current circumstances in the world prevent the possibility of predicting the volume of foreign direct investment flows in the local market during the coming period.
He added that most of the investments come from the Gulf market, especially from Saudi Arabia and the UAE, pointing out that these two countries have benefited greatly from the recent increases in oil prices, and thus have a great financial solvency through which to invest in surrounding countries, especially in Egypt, which is one of their target markets.
He pointed out that health, hotels, real estate and the financial sector will witness an increase in the volume of investment flows to them during the coming period.
During his participation in the Qatar Economic Forum last June, the Minister of Finance, Mohamed Maait, looked forward to increasing the volume of Gulf investments with the transformation of their deposits in Egypt into real investments that benefit from the promising development opportunities available in various fields.

Which sectors are Chinese investments in Africa focusing on?

Greenfield investments in Africa’s energy and gas sector soared from $24 billion in 2021 to $120 billion in 2022.

What trends are emerging for African startups in 2022?

The construction sector attracted $24 billion, and extractive industries received $21 billion during the same period.

The ICT sector reported the highest number of new projects amid Africa’s digital revolution .

Which sectors are Chinese investments in Africa focusing on?

Renewable energy has become a central focus for FDI.

Countries across the continent are targeting ambitious green energy benchmarks: Ghana aims for 1,363 MW by 2030, Angola wants a 70% renewable energy share by 2025, Senegal targets 30% by 2030, and Mozambique already generates over 80% of its energy from hydropower.

Title:

Content: The “green ” energy transition announced by the European Union in the name of combating global climate change requires a huge amount of cheap resources to deploy a network of renewable energy sources (RES).
Therefore, environmentally concerned politicians not only of the EU, but also of the United States, once again turned their eyes to Africa, where China is already in full control.
Bidding for Africa
Ivan Shilov © IA REGNUM
These countries are placing a big bet on Africa, hoping to meet the growing demand for renewable energy and at the same time promising the continent fantastic economic growth.
It is possible to buy green electricity from African countries: according to current estimates, solar power generation is 10 TW, hydropower - 350 GW; wind power - 110 GW.
Mozambique is considered one of the greenest countries in the world - it receives 81% of its electricity from hydropower.
However, much of Africa's energy resources remain largely untapped.
This is where foreign investors put their feet.
With the help of international consulting and investment agencies, they estimate that Ethiopia has solar and hydropower capacity of more than 60,000 MW, while in South Africa, the potential for wind power is estimated at 67,000 GW.
Having adopted the rules of the game of potential investors and decided that renewable energy is the source of their enrichment, some African countries have set themselves goals in the field of green energy development.
By 2030, Ghana aims to increase the share of its national “green ” energy balance from 42.5 MW to 1,363 MW, Angola is ready to use RES by 70% by 2025, and Senegal is doing everything possible to increase the share of RES in the country ’ s energy balance to 30% by 2030.
Windmills
Myriams-Fotos
The Paris climate agreement has forced many African governments to take the climate agenda more seriously, leading to the inclusion of RES provisions in national legislatures, including reforms aimed at encouraging foreign direct investment and private business participation in the process.
Paradoxically, for all the attractiveness of the African continent for “green ” investors, African countries are experiencing an energy crisis: currently more than 600 million people do not have access to electricity, and more than 900 million people do not have access to clean fuels for cooking.
Energy demand is growing every year across the continent due to population growth, with developing countries expected to account for more than 90% of the world ’ s population growth by 2050.
Electrifying their own territories has become a priority for many African governments, which requires significant investment, and here the whole calculation is on foreign investors.
It should not be forgotten that Africa is the second largest mining industry in the world, with many countries of the continent dependent on exploration and mining.
Already, the “green ” energy transition is orienting this industry towards the extraction of elements necessary for the production of electric vehicles, batteries and other clean energy technologies.
Although nearly 50% of South Africa ’ s export value comes from the development and trade of fossil fuels, the main focus is shifted to nickel, copper and cobalt mining – these minerals serve as important components in renewable energy technologies, and demand for them is expected to grow exponentially in the coming decades.
Countries rich in copper and nickel, such as the Democratic Republic of the Congo, Zimbabwe and Zambia, are likely to be especially loved by foreign investors.
To understand what promises these investors entry to the continent, it is enough to study the latest data on the size of mineral deposits, so necessary for the production of renewable energy.
Zimbabwe boasts the world ’ s second largest platinum deposit (2.8 billion tons) and rich chrome ore deposits (10 billion tons), as well as Africa ’ s largest lithium deposit.
The mining sector of the country is estimated at $12 billion a year.
With the growing demand for batteries, Zimbabwe is poised to become one of the world ’ s largest exporters of lithium, and is currently developing four major industrial projects.
Lithium
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Another contender for an investment boom is Zambia, which has about 6% of the world ’ s proven copper reserves, as well as some of the richest deposits in the world, making the country the seventh largest copper producer in the world.
In addition, Zambia has prospects for uranium, gold, coal and diamonds.
The resources of the Democratic Republic of the Congo are estimated at tens of trillions of dollars - these are unused reserves of gold, cobalt, diamonds and high-quality copper.
In 2019, this South African country produced a total of 100,000 metric tons of cobalt, accounting for 70% of global production.
The country boasts some of the highest quality copper deposits in the world.
According to an E & Y report titled “Africa ’ s Attraction Program, ” Africa ’ s young, vibrant population and significant economic potential make it a tidbit for foreign investors.
However, the extraction of minerals and the construction of power plants does not mean that the lives of the African
Rather, it means more exploitation of cheap labor and enrichment of decision makers on how to dispose of the natural resources of their States.
Read earlier in this story: Africa is waiting for the irreversible consequences of the European green course
Read the development of the plot: Copper mining companies in Zambia plan to attract to gold mining

Morocco is developing a $20 billion wind energy project for export to the UK, while Mauritania and Namibia are investing in large-scale green hydrogen capacity .

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

Africa’s mineral wealth, essential for energy transition technologies, is also drawing renewed attention.

The Democratic Republic of the Congo is the leading global producer of cobalt (70% in 2019), while Zambia is a major copper supplier, Zimbabwe is prominent in lithium and platinum, and South Africa remains important for platinum, gold, and diamonds.

The rising need for electric vehicles and batteries underpins investment in these sectors .

Digital finance is another growth area.

Which sectors are Chinese investments in Africa focusing on?

With revenues projected to reach $30 billion by 2025, fintech investment in Africa continues to climb, spurred by a young population and rapid adoption of mobile financial services.

What trends are emerging for African startups in 2022?

Similar trends are seen in agri-tech, advanced manufacturing, logistics, and healthcare technology; for example, imports of medical devices in Southern Africa are projected to reach $1.8 billion by 2023 .

Which sectors are Chinese investments in Africa focusing on?

Foreign investor profiles vary by region.

The UK and France are leading European investors, focusing on oil, gas, mining, and financial services, with $65 billion and $60 billion in investment stock, respectively, as of 2020.

Which European countries lead investment in Africa?

China is unmatched in infrastructure, building over 10,000 km of railways, 100,000 km of roads, and hundreds of ports and industrial parks across Africa.

Title:

Content: People 's Network > > International
Along the way, along the road
China and Africa jointly build the "Belt and Road" wind is hanging
People 's Daily reporter Tang Weihong, Chen Xingxing, Zhao Yanhong
October 06, 2023 17: 23 | Source: People's Daily Online - International Channel
Small number
30,000 miles to go this morning.
In the golden month of September, a railway freight train loaded with coffee beans from the Ethiopian plateau, in the heart of East Africa, traverses the mountains, plains and deserts to reach the easternmost port of Djibouti in Africa.
As early as the early 15th century, Zheng He visited the east coast of Africa four times. The Maritime Silk Road witnessed a long history of China-Africa exchanges. More than 600 years later, China and Africa built the “One Belt, One Road ” key cooperation project, the Asia-Djibouti railway, through the East African plateau, paving the way for prosperity.
The mountains are not far from the sea.
This year is the 10th anniversary of the Belt and Road Initiative, the policy concept of "true sincerity" for Africa and the correct concept of righteousness. Over the past 10 years, China and Africa have worked hand in hand, and the cooperation has yielded fruitful results and fragrance.
Container trains of the Yagi Railway converge at the Nagade station in Djibouti.
Road to Prosperity
On September 16, Fayisa, 28, of Addis Ababa, Ethiopia, drove his train out of the Yagi Railway's Indus station.
As a student, he never rode a train, and now he can ride the train independently on the Ethiopian plateau, transporting Ethiopia's coffee beans, grains, granite and other special products to Djibouti port for export.
The Yagi Railway assists the Ethiopian government in transporting food.
Respondents' Map
With a length of 752.7 kilometers and a design speed of 120 kilometers per hour, the railway is the first transnational electrified railway and the longest distance electrified railway in the African continent.
It will reduce the cargo time from Addis Ababa to Djibouti from seven days to more than 10 hours.
"Safety, price and speed are the most concerned factors when customers choose transportation services." Yagi Railway Marketing Department head Samir told reporters that Yagi Railway helped customers save transportation costs, and its products will be more competitive in the market.
Yagi Railway is jointly constructed and operated by China Civil Engineering Group Co., Ltd and China Railway Second Bureau Group Co., Ltd., and the whole project adopts a full set of Chinese standards to achieve the Sinicization of the whole process from financing support, design standards, equipment procurement, construction and operation.
Over the past five years, the railway has sent 7.43 million tons of goods and nearly 530,000 passengers, and its transportation revenue has maintained an average annual growth of more than 35 percent.
The railway, which will lead to prosperity and development, will not only boost the economies of the two countries and increase people-to-people exchanges, but also significantly enhance regional economic integration.
Hu Bin, Chinese ambassador to Djibouti, said that China-Djibouti infrastructure cooperation projects, including the Yagi Railway, have provided great impetus for Djibouti to continuously advance towards the realization of the Vision 2035 goal.
Laiki Port implements a 7 × 24 hour loading and unloading operation mechanism.
On September 14, a container ship from Shanghai, China, docked at the port of Laiki, shipped Chinese tires, raw materials from Southeast Asia, and loaded rubber and other materials to return to the port.
It takes about a month to pass through other ports before. "A daily chemical products producer in Lagos, Nigeria, told reporters about the logistics convenience brought by Laiki Port.
Laiki Port, located in the Lagos Free Trade Zone, is the first modern deep-water port in Nigeria to be equipped with a container shore bridge.
At the opening ceremony of the port, Lagos State Governor Babajid Sanhuru said that “Laiki Port will make Lagos a maritime logistics hub for Central and West Africa. ”
Paving the road to build the port, connecting the eight sides.
China supports Africa in making infrastructure construction a priority for economic revitalization, and encourages and supports Chinese enterprises to take a variety of modes to participate in infrastructure construction, investment, operation and management in Africa.
Yagi Railway, Kenya Mombasa-Nairobi Railway, Congo (Brazzaville) National Highway No. 1, Laiki Port, Djibouti Doharei Multipurpose Port, Togo Lomé Container Terminal... A large number of "Belt and Road" flagship projects have become the "steel skeleton" supporting the African continent, and played an important role in the process of regional connectivity and integration.
"In the past 20 years, the two sides have cooperated in building more than 10,000 kilometers of railways, nearly 100,000 kilometers of roads, nearly 1,000 bridges, hundreds of ports, and 700 million users of network services in Africa," said Ambassador Hu Changchun, head of the Chinese mission to the African Union.
"It means independence and self-determination," he said.
Opuku, a founding member of the National Democratic Congress and member of the National Political Committee of Ghana, commented on the civilian infrastructure brought to Africa by the Belt and Road Initiative.
East Industrial Park Huajia aluminum production workshop.
Photo by Zhao Yanhong, People 's Daily Online
Dream Garden
"Thanks to Chinese companies for providing me with a stable job," Meirant, a female worker in Ducam, Oromia state, Ethiopia, told reporters, adding that her income has quadrupled in the five years she worked in the Oriental Industrial Park.
Lida clothing, where Melant is located, is the largest jeans production enterprise in Ethiopia, and the entire industrial chain from cotton - yarn - denim - jeans is set up in the park, which greatly promotes local employment.
At the same time, its source material cotton was purchased in Ethiopia, which solved the problem of imported materials due to the shortage of foreign exchange.
On the Addis Ababa – Adama highway, some 16 kilometers to the southeast, a huge sign of the "Oriental Industrial Park" came into view.
Rows of factory buildings in the park are neatly arranged, and trucks carrying raw materials and products pass through them.
The park, founded by Chinese private enterprises, is the first industrial park in Ethiopia, with a total area of 5 square kilometers, of which 2.33 square kilometers has been completed.
Lu Qizhong, director of Dongfang Industrial Park, told reporters that the park currently has more than 140 enterprises, involving building materials, shoes and hats, textile and clothing, automobile assembly and metal processing industries, with a total staff of about 24,000, of which about 1200 Chinese personnel, the rest are local employees, 70% to 80% are female workers.
Ten years ago, Dukam was a small town with a population of about 6,000.
Now, with the arrival of the Oriental Industrial Park, the population of the town has increased dozens of times.
From the original grasslands to the present densely populated towns, Dukam has also been upgraded from a town to a city.
In June 2007, the Oriental Industrial Park was listed by the Ethiopian government as an important priority in the country ’ s industrial development plan.
The construction and development of the park has provided a practical reference basis for the implementation of the Ethiopian Industrial Park Law and promoted the adjustment of relevant land regulations in Ethiopia.
He said that the East Industrial Park has attracted a lot of investment for Ethiopia.
"This has boosted Ethiopia's economic development and created more jobs for our people," he said.
In Huajian Light Industry City, shoemakers work on the production line.
Photo by Zhao Yanhong, People 's Daily Online
"The Chinese master taught me professional skills and Chinese." At Huajian Light Industry City, which is also invested by Chinese private enterprises in Ethiopia, the squad leader Min Derui was checking the operation of the production line in the workshop.
He graduated from Madawarab University, where he has been working for 8 years and is currently responsible for 150 Ethiopian employees. “It is a great achievement that we produce shoes that earn foreign exchange. ”
Build a nest.
Not only in Ethiopia, but also in African countries such as Mauritius, Nigeria and Zambia, the figure of China's economic parks can be seen.
By the end of 2022, China's stock of direct investment in Africa exceeded 47 billion US dollars, making it the fourth largest source of investment in Africa, and there are currently more than 3,000 Chinese enterprises investing in Africa.
The establishment of economic and trade cooperation zones, special economic zones, industrial parks and science and technology parks in cooperation with African countries has attracted Chinese and other countries to invest in Africa, set up production and processing bases and carry out localized operations, increased local employment and tax revenue, promoted industrial upgrading and technological cooperation, and injected new momentum into Africa's industrialization process.
Babatunde, a researcher at the Institute of Peace and Conflict Resolution in Nigeria, bluntly said, “China is a good partner in Africa ’ s exploration of the path of modern development. ”
South yam at Friendship Square in Addis Ababa.
Photo by Zhao Yanhong, People 's Daily Online
The Friendship Tree.
"Hello, welcome to Ethiopia," he said. At the Friendship Square at the foot of the Prime Minister's Office in Addis Ababa, Ethiopia, locals greeted the reporter in Chinese.
On both sides of the horseshoe lotus-shaped national flower lectern, the lush and upright Southern Yangshan trees attract a large number of tourists to take photos.
Friendship Square is an important part of China's aid to Ethiopia's riverbank green development project, and is a key project of the "Belt and Road" jointly built by China and Egypt, with the first phase covering an area of 28.58 hectares.
Previously, it was a garbage dump of sewage, and after the construction of the CCCC One Public Bureau Group, it was only 11 months, which transformed it into one of the most functional and largest urban comprehensive squares in Africa.
"There are 76 trees in all, symbolizing the 76 nationalities of Ethiopia." Zeyedi, an Ethiopian employee of CCCC One Public Bureau Group, touched one of them and told reporters, "This is a gift from an Ethiopian old man when the square was built."
"I see that the square you built is moving trees, my yard has a South Yangshan, I want to give you, now move it, I can plant another small one." Ethiopia lacks a professional green seedling company, when the square tree search work is in the bottleneck, an old man offered to give it free of charge.
The market price of this 12-meter-tall tree is about 20,000 yuan.
“The square that Chinese companies helped us build is fantastic. ” De Bella, a coffee shop not far from Nanyang Shan, told reporters what the square meant to the locals.“ I ’ ve lived in the neighborhood for 15 years.
It turned out that it was very bad, and it was full of garbage... After the square was built, the environment was better, there were more tourists, and the income of the residents nearby was also higher. "
The riverbank green development project has also brought tourism revenue growth and employment growth to Ethiopia, and has also solved environmental pollution and ecological degradation problems that have plagued the region for many years.
Zhao Zhiyuan, Chinese ambassador to Ethiopia, pointed out that the project is of great significance to enhancing the national image of Ethiopia, enriching the lives of the Ethiopian people, promoting economic and social development and constantly advancing toward modernization.
A couple of newlyweds and friends pose for a photo at Friendship Square in Addis Ababa.
Photo by Chen Xingxing, People's Daily Online
All things are created for him and for him.
The Mongolian railway, praised by foreign media as "even giraffes are very satisfied", is another example of the focus on protecting African ecology in the process of China-Africa joint construction of the "Belt and Road".
Kenya is the fulcrum of the 21st century Maritime Silk Road connecting East Africa.
The railway is the first railway to be built by China since Kenya's independence.
According to the migration path and activity habits of wild animals along the route, the railway has set up animal channels and bridge culverts in the wildlife park, and even giraffes can pass at a leisurely height of more than 7 meters.
The railway passes through the air, the animals continue to enjoy themselves in nature, and people can watch from a distance.
Green is the background of sustainable development of the "Belt and Road".
China has been actively supporting Africa's efforts to combat climate change and seek green development.
Following the green development action in the "eight major actions", the green development project was included in the first three-year plan of the "Vision 2035 for China-Africa Cooperation" as one of the "nine projects".
Under the green development project, the China Africa Geoscience Cooperation Center was officially listed, and the China-Africa Green Innovation Plan was launched. A number of renewable energy projects such as the Zongailu Hydropower Station in Nigeria and the Sakai Photovoltaic Power Station in Central Africa are progressing smoothly.
Peter Kagwanga, director of the African Policy Institute in Kenya, believes that China's infrastructure construction and all development within the framework of the Belt and Road Initiative are striving to achieve harmonious coexistence with natural ecology.
Nigerian Agricultural Technology Demonstration Center, Bruce walks with Chinese teacher Wang Xuemin in a field of hope.
Photo by Zhao Yanhong, People 's Daily Online
Land of Hope
"Looking at the operation of Chinese experts, I first knew that the original fertilization is to accurately punch holes in the roots." In early August, early in the morning, Abuja, the Chinese aided Nigerian agricultural technology demonstration center, Bruce from Borno State, was observing how Chinese teacher Wang Xuemin interplanted seedlings.
He taught his countrymen the techniques of fertilization and pest control in China, and successfully extended the cultivation time of chili seedlings, increasing the yield of chili peppers to 30 kilograms in a field that originally produced 5 kilograms of chili peppers per season.
The confluence of the Niger and Benue rivers in Nigeria has irrigated thousands of miles of fertile soil along the two rivers.
However, due to factors such as the level of agricultural technology, the country still needs to import 2.2 million tons of rice every year, and has become a net importer of food for 20 consecutive years.
The project covers agricultural technology training centers, agricultural technology research and development and service centers, small-scale agro-processing technology demonstration centers, new energy and water-saving irrigation facilities and related supporting facilities.
Chinese Ambassador to Nigeria Cui Jianchun said the project is of great significance to agriculture and food security in Nigeria and Africa as a whole.
"It is to help the local people grow good food and feed themselves!" In October 2003, Wang Xuemin first came to Nigeria as a technician sent by the China-Nigeria "South-South Cooperation" agricultural project, and has worked on the land for nearly 20 years.
In 2017, Wang Xuemin and his colleagues cooperated with domestic advanced breeding companies to develop new rice varieties suitable for Nigeria, with a yield increase of about 30% compared to the original local main varieties.
They dream of Nigeria becoming the “granary of Africa ”!
Nigeria Agricultural Technology Demonstration Centre small agricultural processing workshop.
Photo by Zhao Yanhong, People 's Daily Online
It was also in 2017 that the four Chinese ministries and commissions jointly released the “Vision and Action for Jointly Promoting Agricultural Cooperation on the Belt and Road ”, which clarified the framework ideas and cooperation priorities for promoting international agricultural cooperation, and further strengthened the“ Belt and Road ” agricultural cooperation with top-level design.
and fishing.
China actively shares its experience and technology in agricultural development with Africa, supports African countries in raising their agricultural production and processing levels, and promotes the construction of agricultural industrial chains and trade development.
Chinese agricultural experts, like Wang Xuemin, are all over Africa, sowing hope.
According to the white paper on China-Africa Cooperation in the New Era released by the Information Office of the State Council in November 2021, since 2012, China has trained more than 50,000 people in Africa and built 23 agricultural demonstration centers through the implementation of projects such as 100 agricultural experts and expert groups in Africa.
In Madagascar, the introduction of hybrid rice varieties from Hunan, China, has not only fed local farmers, but also sold surplus grain.
In Rwanda, the technical training of fungi and herbs in environmentally friendly agricultural projects is very popular, not only helping to solve food sources and livelihood problems, but also protecting slopes and soil and preventing soil erosion.
By the end of 2020, China has more than 200 non-agricultural investment enterprises, involving a total of 35 African countries, with an investment stock of 1.11 billion US dollars, covering various industries such as planting, breeding and agricultural product processing, and more than 350 kinds of African agricultural products and foods can be traded with China.
The representative of the African Union in China, Mr. Osman, said that cooperation between Africa and China is effectively promoting the transformation of inclusive agriculture in African countries.
Walk alone fast, walk far. 10 years, work together to build a dream! 10 years, painted in a brilliant color!
To date, 52 African countries and the African Union Commission have signed the Belt and Road cooperation document with China. “Africa is what some Western economists call ‘ hopeless continent ’, but now it is on the forefront of China-Africa cooperation under the Belt and Road Initiative, ” said Denis Munene, executive director of the China-Africa Center at the African Policy Institute.
On both sides of the Taiwan Straits, the tide is flat and the wind is hanging.
Looking forward to the next 10 years, China-Africa high-quality joint construction of the "Belt and Road" will certainly take advantage of the momentum and promote China-Africa relations to a better future!
(Editor: Liu Jieyan, Yang Mu)
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Gulf states, especially Saudi Arabia and the UAE, recently pledged $22 billion for investments primarily in North African real estate and energy—e.g., the UAE's Reportage $1.5 billion project in Egypt .

Which African countries are driving the venture capital ecosystem?

Recent high-profile partnerships include the $20 billion Morocco-UK Xlinks power line, the UAE’s ADQ acquiring stakes in Egyptian firms, Kelix bio’s $150 million pan-African pharmaceutical platform, and UK-backed fintech startup Moove.

What trends are emerging for African startups in 2022?

significant merger and acquisition activity

Which African countries are driving the venture capital ecosystem?

Which European countries lead investment in Africa?

African entities are increasingly engaging in such strategic alliances, leveraging Special Economic Zones in places like Mauritius and Rwanda for technology-related industries .

Looking forward, initiatives like the African Continental Free Trade Area (AfCFTA) promise to spur investment by creating a market of 1.3 billion people and a combined $3.4 trillion GDP, which is expected to benefit automotive, agriculture, pharmaceuticals, and logistics.

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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What trends are emerging for African startups in 2022?

Demand for healthcare, advanced consumer goods, and food processing also represents substantial opportunity .

Title:

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

By Sylvia Brune

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

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

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

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

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

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

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

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

So, what’s the solution?

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

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

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

SEE ALSO:

SEZs as talent hubs

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

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

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

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

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

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

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

The Andela example

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

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

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

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

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Which sectors are Chinese investments in Africa focusing on?

In summary, Africa’s FDI landscape is shaped by substantial flows into traditional and high-growth sectors in a select group of leading countries, though diversification is underway.

Robust engagement by European, Chinese, and Gulf investors is matched by the rise of local startups and regional partnerships.

What trends are emerging for African startups in 2022?

These trends, strengthened by economic integration and reform, point to expanding professional opportunities for graduate talent—particularly in new sectors and cross-border business—across the continent .

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Content: East Africa’s evolving venture capital industry

Novastar invested in Kenyan tech-enabled forestry company Komaza in July 2020.

By Niraj Varia, partner at Novastar Ventures

When we set up Novastar seven years ago the concept of venture capital in East Africa was a slightly crazy idea. Impact investing was one thing but it took a long time to convince investors that it was possible to deliver impact and financial returns at an early stage. Today, that argument has been made and the market is undoubtedly maturing.

Two prevailing trends point to this growing maturity. First, we see specialisation amongst both investors and start-ups. Early on there was an attitude of “we don’t know if it’s going to work, let’s be open to anything and give it a go”; today firms are singular in their focus. A great example on the investor side is Mobility 54, a corporate VC backed by Toyota Tsusho Group, which invests solely in mobility solutions for Africa. In turn, Africa-based entrepreneurs have zeroed in on sophisticated solutions to endemic problems. In the past few months alone we have spent time with 10 electric vehicle companies, two companies using AI applied technologies, and a score of marketplaces working to disintermediate broken supply chains. Meanwhile, as we know, fintech is thriving. This level of entrepreneurial activity, and the growing sector expertise that sits behind it, is good news for the East African venture ecosystem and ambitious businesses across Kenya, Uganda and Ethiopia.

The second indicator of market maturity is an increasing separation between impact and venture funds. In the past, if you invested early stage you were probably an impact investor whereas now there are increasing numbers of investors, both individual and institutional, who believe you can invest early to make money. Similarly, there are investors trying to have impact by doing more than just investing in SMEs. The industry no longer lazily bundles ‘early stage’ as impact and venture.

African venture capital is emerging as a distinct asset class. Venture is a very different animal to private equity; our work is not about the deep analysis of a single company in a sector and its financials but rather a judgement of individuals and teams. Almost by definition anything that we get excited about has huge amount of potential and almost no track record. That demands a different way of thinking and a particular sort of investment team.

And there is something distinctive about venture in Africa compared to more developed markets. This is a set of countries where there is massive untapped opportunity in every sector, and challenges in every part of the value chain. The entrepreneurs we work with seek to boldly transform the continent in a fundamental way – to change the way pharma works or disrupt the fertiliser industry, to come up with a new model for agri procurement or introduce innovative sanitation models in overcrowded informal settlements. Through our investments, we show it is possible to be equally committed to the financials and the impact. In our geographies, commercial success and impact at scale are mutually reinforcing because the companies we back are fixing huge problems, not making incremental gains in established industries. This impact finds voice in the stories of customer – whether that’s a family in Kibera getting on to the internet for the first time, a newly married couple buying a sofa for their new home, or a schoolboy being able to access a safe, clean toilet on his way to school.

A couple of examples help demonstrate the opportunity we see every day. One is NewGlobe Education, which started in Kenya expanded into Uganda, and today operates in five countries with over 2,000 schools and more than 780,000 current active pupils. Novastar was one of the first investors in NewGlobe and we’ve since been joined by the Chan-Zuckerberg Initiative and US VC firm NEA, amongst others. A second example is Komaza, whose unique microforestry approach pays farmers to grow tiny plots of trees for wood. Komaza does three things: it generates commercial return, brings enormous social benefit to farmers and their families, and sets up a unique environmental impact story. Both NewGlobe and Komaza share tech enabled operating models and work directly with low income communities on extraordinarily thin margins. These are themes which unite the Novastar portfolio and capture our thesis that you can secure tremendous social impact as well as strong financial returns.

We are not fundraising at the moment, but during the past 12 months we have definitely seen a spike in inbound interest from places like the West Coast, Hong Kong, Singapore and Europe as firms seek co-investment opportunities. This confirms East and West Africa is slowly being recognised at a global level. In turn, the DFIs are increasingly setting up their own internal venture arms, for example British International Investment. Their comfort with the ‘risk’ of venture in Africa now feels secure.

In 2014, Novastar set out to catalyse a new asset class in East Africa. We bear the scars and have the learnt the lessons from the 22 investments we have made since then. Our strong networks have brought in co-investors behind us, both third parties and our own LPs. We remain utterly true to our mission: to back amazing businesses which serve the common good, make money and as a direct consequence transform entire sectors. But we cannot do it alone.

More and more companies are providing early stage funding, be they angels or venture funds, but securing series A and B funding in East Africa remains very tough. Finding an investor willing to write the US$8 million – $15 million cheques needed to support rapidly growing but still unprofitable businesses is hard work. The second challenge is debt, start-ups in East Africa have to raise a lot more capital than they should because they are financing growth – capex or inventory, using equity. In addition, all of our companies have to try and fix entire value chains as they scale; this makes them more capital intensive as they have to iterate more and build much more expertise in their teams. That is why the series A and B rounds are so crucial. We welcome new entrants to this market. The handful of exits that have taken place so far are a cause of unique celebration; over the next three years, there will be more, enough, we think, that they will become cause for routine celebration.”

This article was first published in the East Africa Private Equity Industry Survey, produced by EY and EAVCA.