# Foreign Investment in African Countries: Trends and Opportunities

## Executive Summary

This report provides an overview of foreign investment trends in Africa, highlighting key figures, geographical focus areas, industrial sectors, major investors, and partnerships.

As Africa continues to demonstrate economic resilience and growth potential, foreign investment remains a critical component for the continent's development, creating diverse career opportunities for business administration graduates.

## Economic Growth and Investment Climate

Africa's economic outlook shows moderate growth despite global challenges.

According to the African Development Bank, Africa's GDP is projected to grow at an average rate of 4% in the current year and 3.

9% in 2024, compared to 3.

8% in 2022.

The World Bank projects slightly more conservative growth for Sub-Saharan Africa at 3.

6% in 2023 and 3.

9% in 2024.

Regional growth projections vary significantly:
- **East Africa**: Expected to show the strongest growth at 5% in 2023 and 5.

4% in 2024
- **Central Africa**: 4.

3% in 2023 and 4.

22% in 2024
- **West Africa**: 4.

1% in 2023 and 4.

3% in 2024
- **North Africa**: 4.

3% in 2023 and 3.

4% in 2024
- **Southern Africa**: 2.

3% in 2023 and 2.

8% in 2024

Inflation is expected to decrease from an average of 13.

8% in 2022 to 13.

5% in 2023, and further to 8.

8% in 2024, which would be below pre-pandemic levels.

## Foreign Investment Figures and Trends

The Africa Investment Forum announced the coordination of investments worth $32.

8 billion, demonstrating significant commitment to the continent's development.

According to McKinsey & Company's global managing director, "Across our corporate base globally the interest in Africa is high and growing, and I would say it is about the level that it was in Asia 30 years ago.

"

Morocco has emerged as a significant investor in Africa, with the continent now representing more than 50% of Morocco's foreign direct investment (FDI).

Moroccan financial institutions have

# Foreign Investment in African Countries: Trends and Opportunities

## Executive Summary

This report provides an overview of foreign investment trends in Africa, highlighting key figures, geographical focus areas, industrial sectors, major investors, and partnerships.

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Content: Africa Investment Forum announces coordination of investments worth $32.8 billion - Sunrise Portal
Friday 18 March 2022 7: 02 AM Cairo Cairo 24 °
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Published on: Friday 18 March 2022 - 6: 02 AM | Last updated on Friday 18 March 2022 - 6: 02 AM
African Development Bank (AfDB) President Akinwumi Adesina announced that the forum was successful in coordinating investment deals for projects in Africa worth $32.8 billion.
At the end of the Africa Investment Forum, Adesina said that the largest deal reached at the African Investment Forum, which was held by default, during the period from 15 to 17 March, amounted to $15.6 billion for the Lagos-Abidjan highway, which connects two major cities in West Africa, Nigeria and Ivory Coast.
The 1,200-kilometer highway will consist of four to six lanes and will take about six years to complete, he said.
The projects addressed by the forum touched on the sectors of agriculture, education, energy, climate, health care, minerals, mining and information and communication technology.
Adesina noted that other projects will include the creation of a new medical city in the Senegalese capital of Accra, a fund for health services for low-income populations in South Africa, and two platforms for the manufacture of pharmaceutical products: one in West Africa and the other in Kenya.
These projects are part of the bank ’ s response to COVID-19.
The forum was originally scheduled for late last year in the Ivorian capital Abidjan, but was postponed due to an increase in the number of Omicron cases.
Adesina said: “Through the African Investment Forum, we aim to offset some of the decline in investments that occurred as a result of the COVID-19 pandemic, where“ project funding decreased by about 49%, affecting infrastructure. ”
The AfDB sees its focus on infrastructure as boosting intra-African trade, which today accounts for only about 15% of the continent ’ s total trade, as investment flows are set to help accelerate the implementation of the African Continental Free Trade Area (AfCFTA), which is expected to be fully operational in 2030, to include a market of 1.2 billion people with a GDP of $2.5 trillion.
The African Export-Import Bank is also developing a system that will enable the transfer of funds between African countries instead of settling payments through US and European banks, an initiative that is expected to save the continent $5 billion in annual transaction costs.
“We have no choice but to make the African Continental Free Trade Area (AfCFTA) operational as soon as possible. ”
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The 2022 Nigeria Construction Market Report

2022 Nigeria Construction Market Report

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The Nigeria Construction Market Report is focused on delivering indepth analysis, projections and insights about the lucrative Nigerian Construction Industry

The Nigerian Construction Market report therefore serves as a guidebook to investors on how to enter and navigate smoothly in the market with as much intelligence as possible.”
— Dr. Segun Faniran

AL MARYAH ISLAND, ABU DHABI, UNITED ARAB EMIRATES, January 15, 2023 /EINPresswire.com/ -- The Nigerian construction market is valued at about US$39.5 billion. The sector's contribution to the country's economy stood at 9.56% and grew by 4.8% in the first quarter of 2022.

And with extensive natural resources, a high volume of young and cheap labor, a fast-growing consumer market, and immense investment opportunities in energy and infrastructure, the West African country will always be a target destination for many large economies.

Nigeria is the largest country in Africa by population and gross domestic product (GDP). The government at all levels is committed to infrastructure development, with the private sector actively responding to the call for partnership by the government. There is a huge advantage for early entrants as the urbanization rate grows.

The government looks to embark on 11,800 new projects and continue old ones. These projects, valued at over NGN3.6 trillion, would involve constructing schools, hospitals, roads, bridges, houses, energy, and telecommunication infrastructure.

Therefore, for global infrastructure investors thinking about entering the Nigerian construction industry, there's no better time.

ConstructAfrica has worked with diligent specialists to create this Nigeria construction market report that will give the readers all the information required to succeed in the Nigerian construction market.

The report offers the following benefits :
Understand challenges and opportunities in the Nigerian construction market.
Gain insight into upcoming and ongoing projects in Nigeria.
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To Download the 2022 Nigeria Construction Market Report Sample Presentation for FREE, please click : http://nigeriareport.constructafrica.com

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Content: Africa: The Role of Extractives in Africa's Inclusive Green and Resilient Recovery

Minerals such as graphite, lithium and cobalt could help meet growing demand for clean energy technologies.

The COVID-19 pandemic presents the greatest global development challenge ever faced in our lifetime. It has decimated economies and livelihoods. The impacts are multi-faceted and longer term than expected.

Climate change presents yet another stumbling block to achieving development outcomes as floods, droughts, cyclones, and other natural hazards continue to ravage Africa, reversing the gains made over decades.

For Africa that is already reeling in poverty, debt, crumbling health systems and a myriad of other problems, recovery from the dual crises of COVID-19 and climate change will prove to be an insurmountable task.

As is the case for Africa, industrialization, increased urbanization, and population growth are driving a sustained demand for minerals, metals and coal globally. According to the UN, the number of people living in cities will increase from 4.2 billion currently to 7.3 billion by the end of the century.

It is projected that Africa will have the world's fastest urbanization rate by 2050, but perhaps the greatest demand for minerals is now driven by the quest for a green recovery. As we reboot our economies shattered by the pandemic it is important to adopt an economic development model that lessens environmental, climate and disaster risks and one where social and economic benefits trickle down to those at the bottom of the pyramid, the so called "inclusive, green and resilient recovery".

At the core of a green recovery is the clean energy transition to drive economies, which involves uptake of technologies that reduce emissions such as wind and solar energy and less of fossil fuel-based technologies such as those derived from coal.

If not well managed, the 'transitioning out' of sectors of the economy such as coal could lead to massive losses of jobs and livelihoods for millions of workers and communities in fossil fuel- rich African countries already experiencing poverty and inequality such as South Africa, Mozambique, Nigeria, Angola, Chad, and Gabon, hence the notion of a justice transition. It can also put a damper on the excitement of new discoveries of fossil fuels in countries like Uganda, and Mozambique, hence dashing their hopes for long term economic prosperity. This could potentially leave such countries with a puzzle of dealing with stranded workers, communities and assets.

Minerals largely ignored

Whilst clean energy and decarbonizing international investment and finance seem to be dominating the development discourse, what is less hyped about is the minerals, including rare earth minerals, metals and construction materials needed for this to happen.

A new World Bank Group report (2020) reveals that the production of minerals such as graphite, lithium and cobalt, could increase by nearly 500% by 2050 to meet the growing demand for clean energy technologies.

It is estimated that over 3 billion tons of minerals and metals will be needed to deploy wind, solar and geothermal power, as well as energy storage, required for achieving a below 2°C future. The mineral intensity is such that even if the recycling rate for copper and aluminium is 100%, recycling and reuse will still not meet the steep demand.

Surprisingly, key African policy frameworks and programmes such as the Agenda 2063, Africa Continental Free Trade Area (AfCFTA), Africa Mining Vision and the more recent Africa Green Stimulus Programme (2021) are silent on the linkages between minerals, climate action and green recovery.

However, like any other mining or developmental activity, the minerals driving the clean energy transition come with social and environmental costs and paradoxically have their own carbon footprint, from extraction to end use. Land-based mining is moving into more remote, ecologically and biodiversity- sensitive areas such as wildlife areas and can cause deforestation, relocation of local communities, creation of mountains of often toxic waste and pollution of freshwater ecosystems.

Minerals for climate action

African countries are richly endowed with these 'minerals for climate action'.

About 70 per cent of the world's cobalt - used for batteries in mobile phones to electric cars - comes from the Democratic Republic of the Congo (DRC), and a significant percentage from Madagascar. Countries such as Zimbabwe and Namibia have among the largest reserves of lithium globally.

As the global demand rises and the rush for these minerals by corporates from rich countries heightens, the creation of a level playing field is key so African countries and the local communities that are directly impacted by their extraction also benefit socially and economically from their own resources.

Such countries should not suffer from a "resource curse" and be pushed further into poverty and inequality, environmental degradation, health and safety risks, but should be assisted with the finance, technology and requisite capacity and social protection.

Mineral value addition and the capacity to negotiate win-win contracts with the private sector and deal with corruption are key if Africa is set to achieve long-term social and economic transformation from extractives.

Very few African countries export value-added mineral products. The Botswana case of forward integration in the diamond industry value chain by investing in diamond cutting and polishing and the creation of local jobs should serve as a learning experience for other African countries.

For instance, lithium-rich countries could explore the local manufacture of lithium-ion batteries to tap into local, regional and global electric vehicle and solar industry markets. At the same time, they can contribute to meeting their national targets stated in their Nationally Determined Contribution (NDCs) under the Paris Agreement on climate change.

Digital green solutions

More sophisticated digital green solutions such as the use of robots for COVID-19 recovery and drones for delivery of medication adopted by Rwanda should demonstrate to other African countries that it is doable in a Least Developed Country context if there is sufficient political will.

Challenges that inhibit transformative and scalable social and economic gains from the extractive sector as stated in the Africa Mining Vision must still be addressed. These include large infrastructural deficits which constrain the movement of goods and services; weak local markets for mineral products which reflect the overall low level of Africa's industrialization; technological deficiencies; low levels of research and development; and the large skill gaps existing in the continent

The clean energy transition should adhere to international standards for labour, health, safety, and human rights, particularly the rights of the child and women and social protection of vulnerable groups. The transition should also harness Africa's youth dividend, considering the high rates of youth unemployment on the continent which creates fertile ground for violent extremism, civil conflict, and other social ills.

Ms. Mukarakate is the UNDP Africa Regional Climate Advisor

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African economies should seize the opportunity to better integrate into technology-intensive global supply chains and boost prosperity, but this depends on their ability to harness key market and investment trends, the UN’s trade and development body UNCTAD said on Wednesday.

In a new reportUNCTAD shows that Africa can become a major exporter of higher value-added goods, creating growth and jobs, and fuelling a rise in productivity and wages.

Launching the report in Nairobi, UNCTAD Secretary-General Rebeca Grynspan insisted it would offer a better future for the continent’s economies.

Diversifying trade “builds resilience and enhances innovation”, Ms. Grynspan said, adding that diversifaction was “key” for private sector development and employment opportunities for Africa’s growing population.

Africa’s competitive advantage

Ms. Grynspan highlighted three factors driving the “huge” opportunity for the continent. From a geopolitical point of view, countries and businesses are seeking to diversify their suppliers and thus reduce risk. Africa is well placed to tap into this trend, Ms. Grynspan said, which together with the African Continental Free Trade Area offers “great synergies” for participating in global supply chains.

Africa also has a unique advantage amid the rise of the renewable energy market, as it is a vital source of raw materials for technology-intensive industries – for instance lithium, essential to the production of electric car batteries. It has the possibility to become a destination for manufacturing and should seek to export more complex finished goods rather than just commodities, Ms. Grynspan said.

As for demographics, Africa boasts not only a dynamic, young workforce, but also a “burgeoning” middle class offering local consumer markets for hi-tech goods.

‘Untapped potential’

The report analyses “untapped potential” for African countries to strengthen their position in the automobile, solar energy and pharmaceutical industries.

Encouragingly, Ms. Grynspan noted that Africa’s tech ecosystem growth has already proven impressive, as “hubs in artificial intelligence, 3D printing, blockchain, fintech [financial technology] and e-commerce are thriving” in countries such as Kenya, fostering innovation and strengthening Africa’s chance to capture technology-intensive global supply chains.

Higher wages and resilience

Creating an environment conducive to technology-intensive industries will raise wages, the UNCTAD chief said, underscoring that the average wage on the continent is $220 per month while in the Americas, in comparison, it is nearly $670.

According to UNCTAD, deeper integration into global supply chains would also diversify African economies, boosting their resilience to future shocks.

Attract investment

However, for this to happen, more investment will be needed, Ms. Grynspan said. The report highlights the fact that currently, only about two per cent of global investments in renewable energy go to Africa.

Paul Akiwumi, Director of UNCTAD’s Division on Africa, Least Developed Countries and Special Programmes, said that in order to drive more large-scale private investment, regulatory barriers will have to be removed and regional industrial development plans put in place.

Mr. Akiwumi cited the example of a regional agreement between the Democratic Republic of the Congo and Zambia, allowing for the creation of an industrial zone for the production of electric car batteries. He also highlighted the importance of product registration and intellectual property in order to attract investors.

Urgent debt relief needed

Ms. Grynspan stressed that in order for Africa to be able to seize its competitive advantage, the continent’s economies need debt relief to create fiscal space so that countries can invest in strengthening supply chains and in education for their workforce.

She recalled that African countries pay four times more for borrowing than the United States and eight times more than European nations, as shown in UNCTAD’s recent “World of Debt” report.

‘Change the rules’

“This must change if Africa is to achieve its full economic potential and be a major actor in global supply chains,” the UNCTAD chief insisted, pledging the UN’s unwavering support to nations across the continent.

Ms. Grynspan highlighted UN Secretary-General António Guterres’ advocacy to “change the rules that reproduce these asymmetries” and fix the “distorted” perception of risk which international investors hold in relation to developing economies.

Distributed by APO Group on behalf of UN News.

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Content: (Bloomberg) -- Vukile Property Fund Ltd., a South African real estate investment trust, raised its guidance for 2024 paced by a booming Spanish business that helped counter a deteriorating outlook at home.

The company’s funds-from-operations rose 11% in the six months through September, it said in a filing on Wednesday. Its properties in Spain had “negligible” vacancies, compared with 4.5% in South Africa, Vukile said.

Companies in Africa’s most-industrialized economy are reeling from inefficiencies at the state-run logistics firm and power utility. Electricity outages have prompted business to find ways to cut costs while spending more on running generators. Businesses also have to deal with borrowing costs that are at a 14-year high.

“This is getting to an ideal time in the property cycle to buy,” Chief Executive Officer Laurence Rapp said at a briefing in Johannesburg. “The frustration at the moment is that at the time when one should be buying there is limited access to capital. And when you can get it, it’s very expensive.”

Vukile’s shares jumped as much as 5.6% in Johannesburg before paring gains.

Spain’s economy has been among Europe’s top performers since the global pandemic, buoyed by a strong rebound in tourism that’s been aided by unseasonably warm weather.

Given that little new capacity is coming to the market in Spain “where are the tenants gonna trade from? If not from my mall,” Rapp said.

©2023 Bloomberg L.P.

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Content: en English

Fairer Green Finance

Increasingly shut out of capital markets, African countries face huge budget pressures that impede large-scale investment in economic development. To limit global warming and avert an environmental catastrophe, the international community must help developing countries overcome investors' biased risk perceptions.

CAIRO – This month’s United Nations Climate Change Conference (COP27) in Egypt looks set to be a defining moment in what will surely be a pivotal decade for climate action. Whereas COP26 in Glasgow last year was dubbed the “finance COP,” this gathering has been dubbed by some the “implementation COP” to reflect its focus on translating funding commitments into concrete plans.

COP27’s agenda underscores the need for stronger multilateral cooperation and highlights the urgency of honoring the international community’s pledge to close climate-financing gaps in the Global South. Failing to do so will make it difficult to meet the 2015 Paris climate agreement’s central goal of limiting global warming to well below 2° Celsius, relative to pre-industrial levels, and will render the efforts to limit the temperature increase to 1.5°C all but impossible.

Converting financial commitments to investment opportunities is critical to strengthening climate resilience in Africa. While the continent faces the quadruple threat of climate change, disease outbreaks, food insecurity, and political instability, African countries also struggle with huge budget pressures that impede large-scale investment in economic development. If funding gaps go unaddressed, they will continue to undermine the continent’s opportunity to leapfrog the need for carbon-intensive technologies for progress in achieving the UN’s Sustainable Development Goals (SDGs) and hamper efforts to avert climate catastrophe. The consequences will be felt far beyond Africa’s borders.

According to recent Climate Policy Initiative estimates, the global climate-financing gap – the difference between the total cost of combined Nationally Determined Contributions under the Paris climate agreement and the financing that governments can provide from their own resources to support the net-zero transition until 2030 – is roughly $2.5 trillion. Moreover, funding for climate-adaptation programs currently lags behind investment in mitigation measures, despite the Paris climate agreement’s emphasis on the need to balance the two.

But Africa’s budget shortfall also reflects the structural problems of African economies. In particular, energy poverty has historically undermined economic diversification and exposed the region to negative global shocks. The continent’s climate-funding gap amounts to 10% of its combined $2.4 trillion GDP – more than double its annual spending on health and social programs – as chronic deficits have constrained governments’ ability to expand public investment and attract private capital.

In 2018, the International Monetary Fund highlighted the myriad challenges facing Sub-Saharan African countries in closing the financing gap, including the need to broaden the tax base to increase the capacity of governments to mobilize more revenues domestically. While significant progress has been made over the last two decades, the region’s performance remains dismal. Africa’s median revenue-to-GDP ratio is 20%, compared to 28% in East Asia and 42.3% in Europe.

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The financing gap has been magnified by the incidence of sovereign debt which reflects pernicious “perception premiums” – the overinflated risks that credit-rating agencies assign to African countries, irrespective of these countries’ macroeconomic improvements or growth prospects. With the spreads between African sovereign bonds and US Treasuries now in the double digits, debt-service payments have become African governments’ largest expenditure. Interest payments are expected to consume more than 45% of Egypt’s government revenues this fiscal year and swallow up over half of the government revenues in Ghana and Sri Lanka.

While elevated interest rates deter investment by setting unrealistically high return expectations, they also directly affect public spending. Financing gaps tend to cloud countries’ development horizons, with urgent short-term needs crowding out the most important long-term investments required to transform economies and expand opportunities for the benefit of future generations. Honoring external debt commitments, for example, will always trump funding climate-resilient infrastructure projects.

But in a world awash with cash, countries should not have to choose between saving the planet and preserving their access to capital markets. At $210 trillion, global financial assets are worth roughly double world GDP. An inclusive framework that fosters multilateral cooperation between key stakeholders (governments, donors, development banks, and private companies) and promotes innovative financing mechanisms could de-risk investment to catalyze private-sector financing. Such a framework must also improve the global distribution of green financing, which to date has been skewed heavily toward developed economies. In the first half of 2021, for example, high-income countries issued 76% of the world’s green bonds.

Policymakers and multilateral development banks can help de-risk green infrastructure investment by encouraging the use of innovative financing instruments such as guarantees, insurance, blended finance, and credit-enhanced bonds. Attracting more banks and institutional investors would raise Africa’s share of global climate financing, which is currently just 5.5%.

Insuring investors against specific hazards and reducing the risk of losses, policymakers could increase that share. Similarly, offering credit protection and extending loan maturities would help leverage more private capital to develop long-term green infrastructure projects.

Donors and multilateral lenders have a crucial role to play in mitigating overinflated risk perceptions and creating incentives for investors to finance green projects in developing economies. Through concessional funds employed for blended finance and grants, these stakeholders could create first-loss positions to improve portfolio ratings and de-risk projects. As more investors enter the climate-debt market, multilateral institutions could also enhance the credit of green bonds, thus raising risk appetites and channeling patient capital to where it is most needed.

A robust global carbon market would promote transparency and encourage decarbonization. Likewise, multilateral development banks’ ability to leverage their financial resources to support a liquid secondary market in developing-country sovereign bonds is essential to putting African economies on a path to sustainable development. The nexus between the SDGs and climate change is such that environmental leapfrogging could also set the region on such a path.

The burgeoning green-bond market has entered a virtuous growth cycle and is fast approaching the long-awaited milestone of $1 trillion in annual green investment. But to encourage equitable climate finance, investors must avoid the stigmas that have long plagued the fixed-income market, where foreign investors either shun Africa or invest there only at exceedingly high premiums.

Unbiased financing is crucial to winning the global battle against climate change. To ensure sustainable development, we must encourage asset managers to lead the charge.

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Is the African continent emerging from the external debt trap?
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Is the African continent emerging from the trap of external debt?, a question that is frequently asked in the economic circles and its discussions have become a fatty substance on the table of analysts and experts, especially since the prospects for the ability of African countries to bear debt are still unclear, according to statements recently made by Andrew Dabalin, chief economist for the Africa region at the World Bank.
According to the World Bank, nearly half of sub-Saharan Africa ’ s countries are in default or at high risk of default this year, while inflation is expected to be double-digit across much of the continent with a growth rate of 3.1 percent in 2023.
The debt of African countries is estimated at $1 trillion in 2022, doubling five times since 2000, 66 percent of the debt is concentrated in nine countries, led by South Africa, while 22 countries are unable to meet their financial obligations to creditors, according to the International Monetary Fund, which pointed out that debt installments of about $100 billion annually strained the budgets of many countries and cut more than 15 percent of GDP.
Domestic resource gap
The main reason for resorting to external debt and borrowing is the gap between the investment rate required to achieve the target growth rate and the domestic savings rate, pointing to the expansion of the public debt of Africa, where the debt levels in middle-income countries reached unprecedented levels in modern history, as global debt rose to 28 percent of GDP in 2020. Increased government spending in response to the coronavirus outbreak and loss of revenue due to economic recession.
Stifling investment and undermining growth
Of the total external debt of the African continent, for example, South Africa owns 15 percent, Egypt 13 percent, Angola 7 percent, Morocco and Sudan 6 percent each, while Tunisia, Kenya and Zambia each own 4 percent. Public finances in highly leveraged countries such as Angola, Sudan, Tunisia, and Zambia ranked uncomfortably high in a longer list of countries including Cameroon, Chad, Djibouti, Ghana, Mauritania, Mozambique, and Senegal.
“The heavy debt burden on public finances will continue to undermine the ability to channel funds into economic and social development projects and undermine the resilience to external shocks. ”
But what is the level of external debt that has a negative impact on economic growth?
“External debt can be beneficial if it reduces liquidity constraints, provides an additional source of financing for development and meets the needs of the necessary infrastructure for growth, but external debt affects growth by reducing capital accumulation, which leads investors to lower their expectations of returns due to their expectation of higher tax rates, and also constrains African economic growth by reducing the productivity of production elements because African countries are less willing to adopt more expensive policies. ” Finally, economic growth is negatively affected indirectly through the impact on public spending on social services, education and health, in addition to weak exports, weak savings mobilization, and high inflation as African countries begin to pay off their external debt service.
Safe Limits of External Debt
A high external debt stock can have a negative impact on economic growth through a negative impact on private investment due to the expectation that governments may increase taxes in the future to service debt, so foreign and domestic investors will refrain from investing in debtor countries, leading to lower economic growth, according to Dr. El Shennawi, who explained that the safe limit for external debt is 150 percent of GDP. If the state wants more hedging, the safe limits of debt can be considered to be in the range of 100 percent.
Economic expert Dr. El Shennawi proposes a scenario to get rid of Africa ’ s external debt trap according to four axes:
Public debt is unavoidable
It is not possible to imagine a situation in which any state or government can run its operations without debt, and in estimating this inevitability, the questions that must be asked while seeking to dismantle this structure are, where does religion come from, how is it used, and what are the terms associated with it?
The source of the use and justification of religion are therefore crucial considerations.
• Capital controls
The ultimate goal of the Bretton Woods institutions was, and remains, to protect the interests of international companies by ensuring that African economies offer investor-friendly environments, that African economies are characterized by low wages and consistently low labor costs, and that African economies do not maintain capital controls, so that capital inflows and outflows remain easy.
It also does so by anchoring export-oriented growth strategies even in economies that are unable to produce and export adequately, exacerbating their balance of payments.
• Debt crisis cannot be avoided without focusing on growth
As long as policymakers put the importance of growth aside, we must forget Africa ’ s ability to emerge from the debt crisis.
Yet despite this fact, “neoliberalism ” (an ideological ideology based on economic liberalism) systematically creates a framework that makes it impossible for African governments to focus on growth.
Dismantling the neoliberal model
The focus of neoliberal policy reforms is inappropriate for Africa because of the same initial arguments that African governments have used in order to pursue mixed economies — economies in which the government plays a leading role, not only as a arbiter but also in facilitating and even leading the expansion of productive capacities.
Desperate move to restore macroeconomics
Economist Ali Hamoudi told Sky News Arabia: “African countries have faced financial difficulties for many years, and with the accumulation of debt on some African economies due to increased borrowing amid unexpected domestic expenditures, African countries resorted to default on their external debt or threatened to default in a desperate move to restore macroeconomic and debt sustainability.
As an example in 2021, six countries – Chad, Eritrea, Mozambique, the Republic of Congo, South Sudan and Zimbabwe – were classified as having distressed debt as African governments issued a record $7.5 billion in sovereign bonds, 10 times more than in 2016, and the IMF changed Zambia and Ethiopia ’ s ratings from moderate to high risk.
This year, with rising global inflation, rising borrowing rates, and a strong dollar, paying off debt and generating money has become more difficult, making the situation very complicated in a number of countries such as Ghana, Malawi, Zambia, Tunisia and Egypt, according to Hamoudi.
Economist Hamoudi adds: “I am not surprised to see some African countries default on their external debt, most of these African countries have high debt ratios relative to GDP, and spend a larger proportion of their revenues on debt service financing, which is not sustainable, and it is expected that they will reach a point of imbalance that will make it impossible to pay their debts. ”
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Financially facilitating extra-ordinary businesses to participate in the Economic Boom of West Africa

Barika and Kraft, Dubai based financier talks about unprecedented opportunities that businesses face during the economic prosperity of the West African Region.

“Across our corporate base globally the interest in Africa is high and growing, and I would say it is about the level that it was in Asia 30 years ago.”
— Dominic Barton, global managing director of McKinsey & Company
DUBAI, UNITED ARAB EMIRATES, August 18, 2022 /EINPresswire.com/ -- As West Africa’s population booms, its economy continues to expand, the opportunities for businesses to trade across the region are vast. The rising need economy has presented various opportunities across all industries in West Africa. Previously an agriculturally driven economy is now facing a transition. Majority of the newly established businesses are catering the growing needs of the people of west Africa, which include industries such as Hospitality, Healthcare and Banking.

One of the catalysts and driving forces for this economic can be seen from active participation of the West Africa Trade & Investment Hub (Trade Hub, which is a 5-year, $140 million trade and investment facilitation activity designed to improve private sector productivity, profitability, and competitiveness in West Africa through market-based approaches. The West Africa Trade and Investment Hub is a one-stop shop that partners with banks/financial institutions to provide financial support and business development services, capacity building, and best practices with the aim of making businesses viable and export ready, through the African Growth Opportunity Act (AGOA).

One of the largest economies in West Africa, Nigeria has seen significant surge in Energy usage. The government has been looking at alternate sources of energy such as Solar & Waste-to-Energy plants which has led to the inception of green power projects across the region. Barika and Kraft has been actively participating in this sector with a multitude of projects securing Seed-funding under the patronage of Barika and Kraft.

Apart from Nigeria, another nation observing a significant spike in economic prosperity is Ghana. Consumer expenditure has seen a large growth which is an early sign of nation-wide development. This west African nation is seeing a remarkable growth in exports as their dominant industry being Agriculture has undergone immense technological advancements which has benefited local farms to increase their yields. A lot of entrepreneurs are capturing the opportunity of being the first mover to establish/grow their presence in Ghana and Barika and Kraft has been actively reviewing opportunities of participation.

A representative from Barika and Kraft has informed us that there are a magnitude of projects currently being presented on a daily basis. Barika and Kraft focus on sourcing financial resources to the best of the projects that present their competence. Current projects that Barika and Kraft participate in include Green Energy, Hospitality, Fin-Tech, and Agriculture.

Barika and Kraft is a Dubai-based company providing financing services to global clients. More information is available by visiting its website at www.barika-kraft.com or email: info@barika-kraft.com

VALERY GARCIA
BARIKA AND KRAFT
vg@barika-kraft.com
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Content: News

November 13, 2023

We are building power house around investment in Africa – Adesina

AfDB President, Dr. Akinwumi Adesina

By Jimoh Babatunde

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

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

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

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

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

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

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

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

Founding partners commend Market Days

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

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

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

As Africa continues to demonstrate economic resilience and growth potential, foreign investment remains a critical component for the continent's development, creating diverse career opportunities for business administration graduates.

What trends are emerging for African startups in 2022?

What trends are emerging for African startups in 2022?

What trends are emerging for African startups in 2022?

What trends are emerging for African startups in 2022?

What trends are emerging for African startups in 2022?

## Economic Growth and Investment Climate

Africa's economic outlook shows moderate growth despite global challenges.

Title:

Content: Economics & Business
World Bank forecasts positive growth for Sudan ’ s economy by 2023
Report - Eshraqa Abbas-Sona
The World Bank expects Sudan ’ s economy to achieve positive GDP growth during this year 2023, amounting to about 2% after three lean years, according to the World Bank ’ s latest Global Economic Prospects report.
The bank also predicted that this growth will strengthen (slowly) next year to reach 2.5%, and that any such slowdown represents a huge challenge to economic development, according to the bank's report released last Tuesday called "World Economic Outlook".
The Sudanese economy has not achieved GDP growth during the past years, but has eroded some of the growth it achieved previously, as it suffered negative growth of -3.6% in 2020, and -1.9% in 2021, to recover slightly and reach 0.3% according to the bank ’ s estimates for 2022.
Debt, policy uncertainty, violence and conflict can keep the pace of recovery and growth low and slow.
It could also increase incomes by only 1.2 percent on average in 2023-2024, but it is a much slower rate compared to what is needed to sustain progress in poverty reduction, and reverse the income losses the country has incurred due to the coronavirus epidemic and others.
The Bank warned that this forecast is subject to several downside risks, including a deeper than expected slowdown for the global economy as a whole, as sharp declines in global commodity prices could occur, limiting growth in commodity exporters, including industrial minerals.
If global inflation pressures continue longer than expected, they will raise borrowing costs and increase the risk of debt distress.
Food systems may also be severely affected by high costs of agricultural inputs, climatic conditions and weather shocks, further disrupting agriculture and delaying large infrastructure and mining projects.
According to the World Economic Outlook, growth in sub-Saharan Africa is expected to be 3.6 percent in 2023 and 3.9 percent in 2024.
In the Middle East and North Africa, 3.5% in 2023 and 2.7% in 2024.
The global economy as a whole will grow by 1.7% in 2023 and 2.7% in 2024, with the sharp slowdown expected to spread widely across all countries.
World Bank Group President David Malpass said: “The crisis facing development is worsening as global growth prospects deteriorate. ”
Emerging and developing countries face a multiple period of slow growth driven by heavy debt burdens and weak investment, as global capital is absorbed by advanced economies facing extremely high levels of government debt and rising interest rates.
Weak growth and business investment will exacerbate already devastating setbacks, in education, health, poverty, infrastructure and growing demands from climate change.
Political Mobility

Title:

Content: Entertainment

Africa’s fashion industry is growing to meet global demands but needs more investment, UNESCO says

ABUJA, Nigeria — (AP) — Africa’s fashion industry is growing rapidly to meet local and international demand but inadequate investment limits its potential, UNESCO said Thursday in a report released during Lagos Fashion Week.

Currently valued at $15.5 billion worth of exports annually, the earnings from the continent's fashion industry could triple over a decade with the right investment and infrastructure, according to UNESCO Director-General Audrey Azoulay, who launched the organization’s first report on fashion in Africa in Nigeria’s economic hub of Lagos.

With a young population of 1.3 billion people set to double by 2050, the continent’s fashion industry has also proven to be both “a powerful lever for the promotion of cultural diversity (and) also a way to empower young people and women,” said Azoulay.

Across the continent, fashion continues to grow on various fronts – including in movies and films – in the form of textiles, garments as well as accessories and fine crafts, all with a long history of prestige and symbolic of the African culture.

The demand for African fashion brands is also spurred by the growth in e-commerce, the UNESCO report noted.

Africa leads mobile device web traffic in the world, according to the U.S. International Trade Administration. That has opened more market opportunities such that across Nigeria, for instance, young people on social media are steadily opening fashion brands.

“Africans want to wear Africa. It’s really beautiful to see because it hasn’t always been like this,” said Omoyemi Akerele, who founded the Lagos Fashion Week in 2011 to encourage the patronage of Nigerian and African fashion. “But fast forward, a decade after, that’s all people want to wear."

Featuring a mix of designers from across the continent, the annual fashion show celebrates — and provides a market for — local brands mostly highlighting African culture and crafts in various colours and styles.

In Nigeria and other parts of Africa, young fashion designers are hungry for success and are taking over the global scene, said the UNESCO director-general.

“A new breed of young designers is causing a stir in the international scene, reinventing the code of luxury while at the same time reconciling them with the demands of sustainable, local fashion and heritage," she said.

One such designer at the Lagos Fashion Week, Ejiro Amos-Tafiri, said she uses her brand to tell African stories while celebrating “the sophistication, class and uniqueness of every woman.”

“With more exposure, people are coming to realize that there is a lot of culture in the Nigerian culture, particularly in the fashion industry,” she said. “So Africa is really the next frontier (for the fashion industry).”

___

Associated Press journalist Dan Ikpoyi in Lagos, Nigeria contributed.

According to the African Development Bank, Africa's GDP is projected to grow at an average rate of 4% in the current year and 3.

Title:

Content: The African Development Bank expects the continent ’ s growth rate to stabilize at around 4%.
Saturday ، 21 January 2023 10: 38 AM
African Development Bank
A, A, A,
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Africa ’ s medium-term growth prospects are subject to significant headwinds, including a sharp slowdown in the global economy, continued inflation, tightening global financial conditions, rising cost of capital, depreciation of the national currency, declining financial flows, continued climate-related losses and damage, geopolitical tensions, and further escalation of the Russo-Ukrainian conflict.
According to the report of the African Development Bank, Africa ’ s average economic growth rate is expected to stabilize at around 4% between 2023 and 2024, surpassing the global averages of 2.7% and 3.2% projected in the same years.
According to the African Development Bank (AfDB), the continent ’ s gross domestic product (GDP) should grow by an average of 4% this year and 3.9% in 2024, compared to 3.8% in 2022.
East Africa is expected to experience the strongest growth in 2023 and 2024 at 5.4% and 5.4% respectively, ahead of Central Africa (4.3% in 2023 and 4.22% in 2024), West Africa (4.1% and 4.3%), North Africa (4.3% and 3.4%) and South Africa (2.3% and 2.8%).
The AfDB also noted that inflation in Africa is expected to fall from an average of 13.8% in 2022 to 13.5% in 2023, before falling to 8.8% in 2024, below the level of 9.1% recorded before the Coronavirus pandemic in 2019 and the average of 9.6% recorded between 2014 and 2018.
At the regional level, inflation will remain high in East Africa due to continued supply constraints, the impact of climate change, conflict and political uncertainty affecting some countries in the region, while Central Africa will see relatively low stable inflation, expected to reach 5.7% this year, partly reflecting coordinated monetary policies.
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Content: Urgent.
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% by the end of the year.
News source / Libya Direct
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% at the end of 2022 and by 4.4% in 2023.
He added that these expectations are driven by the resumption of oil production, rising demand for energy resources and a recovery in global prices.
The Libyan Event
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Libya Direct

9% in 2024, compared to 3.

8% in 2022.

The World Bank projects slightly more conservative growth for Sub-Saharan Africa at 3.

6% in 2023 and 3.

Title:

Content: Urgent.
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% by the end of the year.
News source / Libya Direct
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% at the end of 2022 and by 4.4% in 2023.
He added that these expectations are driven by the resumption of oil production, rising demand for energy resources and a recovery in global prices.
The Libyan Event
About News Source
Libya Direct

9% in 2024.

Regional growth projections vary significantly:
- **East Africa**: Expected to show the strongest growth at 5% in 2023 and 5.

Title:

Content: Urgent.
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% by the end of the year.
News source / Libya Direct
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% at the end of 2022 and by 4.4% in 2023.
He added that these expectations are driven by the resumption of oil production, rising demand for energy resources and a recovery in global prices.
The Libyan Event
About News Source
Libya Direct

4% in 2024
- **Central Africa**: 4.

3% in 2023 and 4.

Title:

Content: Urgent.
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% by the end of the year.
News source / Libya Direct
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% at the end of 2022 and by 4.4% in 2023.
He added that these expectations are driven by the resumption of oil production, rising demand for energy resources and a recovery in global prices.
The Libyan Event
About News Source
Libya Direct

22% in 2024
- **West Africa**: 4.

1% in 2023 and 4.

Title:

Content: Urgent.
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% by the end of the year.
News source / Libya Direct
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% at the end of 2022 and by 4.4% in 2023.
He added that these expectations are driven by the resumption of oil production, rising demand for energy resources and a recovery in global prices.
The Libyan Event
About News Source
Libya Direct

3% in 2024
- **North Africa**: 4.

3% in 2023 and 3.

Title:

Content: Urgent.
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% by the end of the year.
News source / Libya Direct
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% at the end of 2022 and by 4.4% in 2023.
He added that these expectations are driven by the resumption of oil production, rising demand for energy resources and a recovery in global prices.
The Libyan Event
About News Source
Libya Direct

4% in 2024
- **Southern Africa**: 2.

3% in 2023 and 2.

Title:

Content: Urgent.
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% by the end of the year.
News source / Libya Direct
The African Development Bank (AfDB) has announced that it expects the Libyan economy to grow by 3.5% at the end of 2022 and by 4.4% in 2023.
He added that these expectations are driven by the resumption of oil production, rising demand for energy resources and a recovery in global prices.
The Libyan Event
About News Source
Libya Direct

8% in 2024

Inflation is expected to decrease from an average of 13.

8% in 2022 to 13.

5% in 2023, and further to 8.

8% in 2024, which would be below pre-pandemic levels.

## Foreign Investment Figures and Trends

The Africa Investment Forum announced the coordination of investments worth $32.

8 billion, demonstrating significant commitment to the continent's development.

According to McKinsey & Company's global managing director, "Across our corporate base globally the interest in Africa is high and growing, and I would say it is about the level that it was in Asia 30 years ago.

What trends are emerging for African startups in 2022?

"

Morocco has emerged as a significant investor in Africa, with the continent now representing more than 50% of Morocco's foreign direct investment (FDI).

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Content: DON'T MISS : Talking Africa Podcast - Gates Foundation CEO: 'Stop stockpiling & deploy vaccines to Africa to avoid costly new variants'

Money talks in Morocco’s pivot to Africa

By Jon Marks and Alié Dior Ndour
Posted on Thursday, 27 January 2022 07:24

Morocco has reshaped its world view since the financial crisis. With increasing emphasis on anglophone economies, Rabat is looking to be a trans-continental player.

Morocco spent the decade following the global financial crisis making an increasing commitment – driven by King Mohammed VI – to building business and political links across Africa. This meant going far beyond the country’s traditional francophone links. Progress is such that “Morocco now plays a major role in Africa, which today has become its vital space”, according to a senior executive in a leading Casablanca bank.

Financial institutions led the way.

Attijariwafa Bank (AWB), BMCE Bank of Africa (BOA) and Banque Commercial Populaire (BCP) moved quickly to fill the growing vacuum left by the retreat of major Western banks. The big three Casablanca banks now make between a quarter and a third of their net consolidated profits in other African markets; BOA’s network has grown the African contribution to its overall profit to 35%; for BCP it is around 25% and for AWB 31%.

Such is the extent of the pivot to Africa, after years of greater focus on Europe and the Middle East, that the continent now represents more than 50% of Morocco’s foreign direct investment (FDI).

What trends are emerging for African startups in 2022?

What trends are emerging for African startups in 2022?

Moroccan financial institutions have