‘Africa remains fertile ground for investment’

THE African Development Bank (AfDB) says Africa remains a fertile investment ground with much effort premised on the continent’s ability to boost its health sector.

Speaking during a United Kingdom Department for International Trade-organised, Africa Investment Conference held virtually last Wednesday, AfDB president Dr Akinwumi Adesina said:

“Africa remains fertile ground for investment, but much hinged on the continent’s ability to boost its healthcare sector.” The one-day event brought together United Kingdom (UK) and African business and government leaders to discuss investment and partnership opportunities.

Four sectors namely, sustainable infrastructure, renewable energy, financial and professional services, and agriculture and agri-tech came under the spotlight.

The UK trade commissioner for Africa Mrs Emma Wade-Smith, joined Dr Adesina in the meeting that was held under the theme, “Building back better — utilising UK private sector strengths and values, and business-to-business opportunities working with UK government and others going forward.” During the meeting Dr Adesina noted that Africa still possessed the same fundamentals that had driven the continent’s phenomenal growth over the past decade.

AfDB said during the meeting it was highlighted that the continent offered ample opportunities in terms of natural resources, vast tracts of arable land, and a young and rapidly urbanising population.

In addition, the potential presented by the newly launched African Continental Free Trade Area (AfCFTA), which came into operation at the beginning of this month was also highlighted.

“The fundamentals in those phenomenal growth rates in Africa are still there . . . Africa still leads in terms of ease of doing business . . . It’s very exciting, the digital explosion that you see in Africa today,” Dr Adesina said, while listing the tide of mergers and acquisitions among African firms.

Last year, Africa’s economy shrank by 2,1 percent but is expected to grow by 3,4 percent in 2021 as the global economy recovers from the impact of the Covid-19 pandemic.

During the meeting Mrs Wade-Smith said she was heartened to learn that 10 of the world’s fastest-growing economies were still in Africa, adding that there was not enough awareness of how much innovation was happening in the region. She said there was an opportunity to blend African and UK innovation. “I’ve been struck by how many opportunities there are,” Mrs Wade-Smith said.

Africa has 365 pharmaceutical companies compared to 7 000 in China and 11 000 in India, as individual countries with comparable population sizes.

In this context, Dr Adesina urged British investors to pay attention to Africa.

“That’s where the next frontier is,” he said.

Other participants included UK Prime Minister Boris Johnson, Minister for Africa Mr James Duddridge, Minister for Investment Mr Gerry Grimstone, as well as business leaders from Standard Bank, pharmaceuticals firm AstraZeneca and mobile operator Vodacom. —