African leaders have recently renewed their commitment to attracting capital to the continent. They gathered at the Africa Investment Forum (AIF) Market Days in Marrakesh, Morocco, with a clear goal. They aim to de-risk markets, enhance investor-friendly policies, and actively promote opportunities for the global community. This resolve is critical in changing Africa’s investment narrative.
The AIF, a joint initiative involving the African Development Bank (AfDB) and other key financial institutions, is Africa’s primary investment platform. At the forefront of this effort is the newly launched Alliance for Special Agro-Industrial Processing Zones. This platform, a response to AfDB’s Feed Africa commitment, seeks to mobilize at least $2 billion over five years. It focuses on boosting Africa’s agricultural sector.
According to a report by The Guardian, AfDB’s president, Adesina, explains the Alliance’s strategy. It will finance up to 20 special agro-industrial processing zones across Africa. The Alliance will operate various investment windows. These will cover project preparation, development, and funding for tenant companies. It aims to address financing gaps and enhance agricultural value in Africa.
This initiative builds on the momentum of the Feed Africa Summit. Held in Dakar with AfDB, the Senegalese government, and the African Union, the summit secured $72 billion in commitments. These funds will support food and agriculture projects across Africa.
Adesina shared significant achievements at the forum’s opening. Since 2018, AIF has attracted $143 billion in investment interest. He highlighted the $15.5 billion secured for the Abidjan-Lagos highway at the 2022 Market Days. This project promises to transform West African trade and integration.
The forum has also sparked interest in other significant projects. These include the $3.6 billion East Africa railway corridor, connecting key regional nations. AIF has closed $11 billion in deals across diverse sectors.
The forum’s success demonstrates Africa’s readiness for business. It has drawn over 16,500 participants, showcasing the continent’s commitment to being a key investment destination.
Adesina pointed to Africa’s robust economic indicators. The continent’s GDP growth in 2022 was 3.8 per cent, surpassing the global average. Projections show several African nations among the world’s fastest-growing economies in the coming years.
The African food and agriculture market is set to reach $1 trillion by 2030. The African Continental Free Trade Area further presents a massive $3.4 trillion market opportunity. Africa’s vast reserves of green metals are essential for the global electric vehicle industry.
Adesina also highlighted the ambitious desert-to-power project. Spanning 11 Sahel countries, this $20 billion initiative will create the world’s largest solar zone. It marks Africa’s strong move towards renewable energy.
At a presidential panel, leaders discussed strategies to overcome investment challenges. Sierra Leone’s President Bio urged economic diversification. Somali President Mohamud highlighted the need to ease trade and investment barriers. Rwandan Prime Minister Ngirente called for swift, decisive action to realize the desired economic progress.
