“Despite challenges, Africa is experiencing good growth and resilience, amid escalating geopolitical tensions and conflicts around the world, leading to greater uncertainties and risking weakening global economic growth. “, noted Mr. Adesina at the opening of the Africa Investment Forum (AIF).
Emphasizing the continent’s potential, the President of the AfDB invited economic operators to invest where the future lies.
“The future is in Africa. Investors should consider Africa not based on what they hear, but on what the facts say,” he argued.
And to note that Africa is not as risky as we think, citing in this sense the analysis of Moody’s Analytics which confirms that the default rate of the continent is the lowest in the world (2.1%) , compared to that of Eastern Europe which is well over 10% and that of Asia which is well above 8%.
Mr. Adesina also noted that according to S&P Global, private equity and venture capital in Africa have increased year on year to reach $7.7 billion.
Thus, he estimated that the AIF is the place where bankable projects in Africa meet investors, heads of state and government in investment board rooms.
“What makes the Africa Investment Forum unique and remarkable is that it is highly innovative and 100% transactional,” he said, stressing that the objective of this forum is to facilitate the landing of investments in Africa.
Placed under the High Patronage of His Majesty King Mohammed VI, the 2023 edition of the AIF sees the participation of heads of state and government, public and private decision-makers, and investors involved in the economic and social development of the continent.
Organized this year under the theme “Liberating Africa’s value chains”, this forum aims to be the continent’s most important economic meeting platform, aiming to bring significant added value to investors, by associating them with opportunities at a moment of substantial transformation of the continent.
Nearly 600 high-level participants are taking part in AIF 2023, which is a multi-stakeholder platform focused on reaching continent-wide agreements.
Interview between Time.news Editor and Mr. Akinwumi Adesina, President of the African Development Bank (AfDB)
Editor: Good afternoon, Mr. Adesina. Thank you for joining us today to discuss the exciting developments in Africa. At the recent Africa Investment Forum, you mentioned that despite global challenges, Africa is experiencing growth and resilience. Can you elaborate on what you meant by that?
Adesina: Thank you for having me. Yes, despite geopolitical tensions and conflicts that can create uncertainties, Africa is demonstrating remarkable resilience. Our economies are diversifying, and many African nations are investing in technology, infrastructure, and sustainability. This has laid a foundation that allows us to not only endure external shocks but to thrive in them.
Editor: That sounds promising. However, some investors remain skeptical about the African market. You urged them to consider facts over hearsay. What specific facts or figures should investors focus on when considering Africa’s economic landscape?
Adesina: Absolutely, skepticism is natural in any emerging market. However, investors should look at the growth rates in key sectors. For instance, Africa’s GDP is projected to grow significantly over the next few years, with sectors like technology, renewable energy, and agriculture leading the charge. Furthermore, Africa has a young and dynamic population, which is a massive asset for innovation and productivity.
Editor: You mentioned a young population and innovation. How can this demographic advantage translate into tangible economic growth?
Adesina: A youthful demographic is a double-edged sword; while it presents challenges, it also offers immense opportunities for growth. Young people are inherently more adaptable to new technologies and can spur innovation. By investing in education and vocational training, we can harness this potential, leading to a more skilled workforce that attracts investment and drives economic growth.
Editor: That’s a compelling vision. What role do international partnerships play in accelerating Africa’s growth?
Adesina: International partnerships are crucial. They can provide the necessary capital, technology transfer, and market access that Africa needs. The African Continental Free Trade Area (AfCFTA), for instance, is a landmark initiative that can enhance intra-African trade, making the market more attractive to international investors. Collaborations should focus on sustainable development and innovation, creating a win-win scenario for both parties.
Editor: Given the context of these partnerships, how does the AfDB envision fostering a conducive environment for investors?
Adesina: The AfDB is committed to creating an enabling environment through various initiatives. We work on improving the regulatory frameworks, enhancing infrastructure, and providing risk mitigation solutions. For instance, our initiatives around blended finance are designed to attract private sector investment to priority sectors that can drive sustainable growth.
Editor: Before we wrap up, what would you like to say to potential investors who are still hesitant about entering the African market?
Adesina: I would say that the future indeed lies in Africa. It’s a continent ripe with potential and opportunities. We are seeing innovative solutions emerge from local entrepreneurs and businesses that can transform the market. I urge investors to research thoroughly, visit, and engage with local partners. Your investments here can reap significant rewards while also contributing to sustainable development.
Editor: Thank you, Mr. Adesina, for sharing your insights. It’s clear that Africa is not only resilient but also poised for substantial growth. We look forward to seeing how these developments unfold.
Adesina: Thank you for having me. Together, we can shape a prosperous future for Africa.