2024-12-05 05:57:00
One person who actively promotes investment in Africa is Stefan Liebing. He is an honorary professor at the University of Flensburg and CEO of Congiunzione, a medium-sized company that develops and finances investment projects in Africa. Liebing is critical of the German federal government’s current strategy for Africa and is bothered by the “continent of opportunity” narrative.In his view, economic opportunities across Africa have worsened since the coronavirus pandemic.Inflation is rising, growth in many countries is weakening, per capita income is low, which cripples consumption in africa. There are big opportunities “only in selected countries, sectors and business models,” Liebing said at a conference at the Center for Business and Technology in Africa at the University of Flensburg.
Which sectors in Africa are currently attracting the most foreign investment?
Interview with Stefan Liebing: Unlocking Investment Opportunities in Africa
Time.news Editor: Thank you for joining us today, Stefan. As a CEO of Congiunzione and an expert in fostering investment in Africa, can you share your insights on the current investment climate on the continent?
Stefan Liebing: Thank you for having me. The investment landscape in Africa is complex and multifaceted. While the potential is frequently enough highlighted, the reality is that many countries are facing critically important challenges. Since the coronavirus pandemic, we’ve seen rising inflation and weak growth, which negatively impacts economic opportunities.
Time.news Editor: You mentioned that the narrative around Africa as a “continent of opportunity” is overly simplistic. Can you elaborate on that?
Stefan Liebing: Absolutely. While there are opportunities in Africa, they are not evenly distributed.My concern is that this broad brush “continent of opportunity” perspective overlooks the nuances.Economic conditions vary dramatically from country to country and even within regions.There are promising sectors and business models, but they exist primarily in selected countries. Identifying these hotspots is essential for successful investment.
Time.news Editor: That’s a valid point. For potential investors looking to enter the african market, what practical advice would you give?
Stefan Liebing: Investors should conduct thorough due diligence and focus on localized opportunities.Understanding the socio-economic conditions, regulatory environments, and consumer behavior in specific regions will yield better insights.Collaboration with local businesses can also enhance market entry strategies. Moreover, investments should align with sectors that show genuine growth potential, such as technology, renewable energy, and agriculture.
Time.news Editor: You also highlighted the role of the German federal government in promoting investment in Africa. What improvements do you think could be made to their current strategy?
Stefan Liebing: The german government has great potential to facilitate investment in Africa, but their current strategy needs to be more targeted.It would be beneficial to prioritize partnerships with private companies and leverage their expertise and resources. Additionally, fostering a better understanding of the economic landscapes in African countries can help create more effective policies that support sustainable advancement and genuine investment opportunities.
Time.news Editor: In your opinion, what sectors hold the most promise for future investment in Africa?
Stefan Liebing: Several sectors stand out. Technology, particularly fintech, is rapidly growing and transforming economies. Renewable energy is also crucial, as many African nations are striving to enhance energy access and sustainability. Agriculture remains a essential sector,especially with the continent’s rich natural resources and potential for innovation in agri-tech.
Time.news Editor: As we look to the future, what changes do you anticipate in africa’s economic landscape?
Stefan Liebing: I foresee a gradual shift towards more diversified economies in several African nations. Innovation and technology adoption will drive this change, along with improved infrastructure and investment in human capital. However, achieving this requires overcoming current hurdles, including governance issues and external economic pressures. It’s a challenging journey, but the potential for transformation is immense.
Time.news Editor: Thank you for sharing your valuable insights, Stefan. Your perspective on the complexities of investment in Africa is enlightening and essential for both current and prospective investors.
Stefan Liebing: Thank you for the opportunity to discuss these crucial issues. It’s crucial that we understand the realities of investing in Africa to maximize it’s potential together.