BY GODWIN OBI
With a real GDP growth of 3.8 per cent in 2022, which was than higher than the global average of 3.5 per cent, Dr. Akinwunmi Adesina, President of Africa Development Bank, (AfDB) has described the African continent as the land of immense opportunities for discerning investors.
This was even as former President Olusegun Obasanjo, yesterday said his presence at the ongoing Africa Investment Forum in Marrakech was driven by his personal interest and commitment towards the growth of investment on the continent.
The former President who declined further comments as it relates to the diminishing prospects of foreign investment inflows into Nigeria, compared to his time in office, said he was looking forward to more foreign direct investment inflows into Africa, without any mention of Nigeria’s dire economic and foreign investment.
But while presenting his opening address at the ongoing Africa Investment Forum (AIF) in Marrakech, in the Kingdom of Morocco, themed “Unlocking Africa’s Value Chains” Adesina explained that five of the six pre-pandemic top performing African countries are now projected to return to the league of the world’s 10 fastest-growing economies for 2023–2024.
This was even as he noted that Africa’s population which will hit 2.5 billion by 2050, will account for 25 per cent of the global population to become a major market for Electric Vehicles from Europe and the Asian markets raises optimism that its huge natural resource endowments could help it play a key role in that sector if its leaders take deliberate steps to make right investments.
Against this backdrop, the AfDB boss urged global Investors to see Africa not from what they hear, but from what the facts say, by using recent assessment by Moody’s Analytics that concluded that Africa’s default rates on infrastructure financing globally over the past 14 years is the lowest in the world at 2.1 per cent compared to Eastern Europe at well over 10 percent and Asia at well over 8 percent.
Adesina stated that Africa is not as risky as most investors perceive it.
Also quoting a recent S&P Global in February 2023 with a screaming headline “African private equity activity surges to 5-year high in 2022.” “Private equity and venture capital in Africa soared year over year to $7.70 billion.”
He added that assessment by these analysts from outside the continent should therefore be enough inspiration for quality investment decisions by all discerning investors to come to Africa if they desired reaping high risk-adjusted returns!
“Our goal is simple: make investments to land in Africa smoothly,” he said.
Speaking on the achievements of the Africa Investment Forum since its launch in 2018, the AfFB boss listed them to include; drawing more than 16,500 participants to its events across the continent and generating investment interest of nearly $143 billion.
Also last year, investment interests were secured for $3.6 billion for the East Africa railway corridor, linking Tanzania, Democratic Republic of Congo and Burundi.
He also pointed out that the number of deals increased from 211 in 2018 to 404 in 2022—an increase of 91 percent, with total transaction value expanding from $4.65 billion in 2018 to $7.70 billion in 2022—an increase of 66percent
“The Africa Investment Forum is the place where bankable projects in Africa meet with investors, where investors meet with Heads of State and Government in investment board rooms, where comfort is given to investments, where risks are managed, and where deals are closed.” He said
Adesina also observed that there could many international conferences focused on business opportunities in Africa, but that no such gathering has been more strategic and important in terms of its convening power and capacity to galvanise investment actions on the continent, than the Africa Investment Forum—Africa’s premier investment marketplace.
“What makes the Africa Investment Forum unique and remarkable is that it is highly innovative, and 100 percent transactional. There is no other global investment forum like it. We develop and curate projects, reduce transaction costs and risks and accelerate the closure of deals. We also improve the overall business environment within which projects and investments are structured, developed and delivered.
Earlier in his welcome address, the Morocco King, His Majesty, Mohammed VI, commended the hosting of this year’s Forum in his kingdom.
The monarch said the country has made tremendous investment in the infrastructure space, including the Nigerian Morocco Gas pipeline project, stressing it will enable countries within the network enjoy unimpeded access to gas for power for household and industrial usage.
He pledged his country’s commitment to welcome other interested investors to support the project.
King Mohammed VI also noted that Morocco now has an installed renewal energy capacity of 4.1 GW, even as it has continued to expand its grid of renewable capacity to 52 percent of its national electricity mix by 2030.
In the area of investment, he said the kingdom was working to ensure that the private sector accounts for two- third of total investment by 2035.
On motorway, he said Morocco has now has a network of 2000kilometers, connecting all cities with more than 400000 inhabitants, while it became the first African country to launch a modern train traveling 320 km per our.
“Over the past two decades, Morocco has implemented major structural and investment reforms that would easily insulate our economy from the externalities and vagaries of global economic shocks in addition to putting the Moroccan economy on a sustainable path to strong and inclusive growth “ the monarch said.
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