During the Africa Investment Forum, Akinwumi Adesina, the President of the African Development Bank (AfDB), praised investment opportunities in Africa due to its strong economic growth, favorable demographics, potential in renewable energy, and low default payment rates.
"Africa is the top investment destination. And African economies offer some of the best opportunities globally," stated the President of the AfDB at the opening of the Africa Investment Forum held from November 8 to 10 in Marrakech under the theme "Unlocking Africa's Value Chains." The forum is attended by heads of state, decision-makers, multinational corporations, and investors to highlight Africa's investment potential.
With supporting figures, the President of the AfDB emphasized why Africa has become a preferred investment destination. Firstly, the continent is experiencing good growth and demonstrating resilience.
"Despite the challenges the continent has faced, Africa recorded a real GDP growth of 3.8% in 2022, surpassing the global average of 3.5%. Five of the six best-performing African economies before the pandemic are expected to be among the ten fastest-growing economies in the world in 2023-2024. These figures demonstrate Africa's resilience in the face of global economic crises," highlighted Akinwumi Adesina.
He also added, "with a population expected to reach 2.5 billion by 2050, representing 25% of the global population, Africa is set to become the engine of the global workforce. With 477 million young people aged 15 to 25, the continent is an invaluable source of skilled labor and talent."
Regarding the food market, he noted that its size will reach $1 trillion by 2030, in less than seven years.
Five of the six best-performing African economies before the pandemic are expected to be among the ten fastest-growing economies in the world in 2023-2024.
On opportunities, A. Adesina emphasized the potential in the electric vehicle sector. According to him, the future of electric vehicles largely depends on Africa as the main source of metals required for their manufacturing. Additionally, "Bloomberg NEF's assessment shows that the cost of manufacturing lithium-ion battery precursors in Africa is three times lower than in the United States, China, and Poland," he stated.
Regarding renewable energy, the President of the AfDB remains convinced that "Africa has the largest sources of renewable energy in the world, including hydropower and solar energy." He cited examples such as the Noor Ouarzazate solar complex in Morocco and the AfDB's $20 billion "Desert to Power" project, demonstrating the continent's commitment to sustainable energy transition.
A. Adesina took this opportunity to dispel some prejudices related to payment defaults in Africa. He affirmed that "Africa has the lowest payment default rate in the world, at only 2.1%. Compared to Eastern Europe (over 10%) and Asia (over 8%), Africa appears as a less risky investment option."
Africa has the lowest payment default rate in the world, at only 2.1%
For the President of the AfDB, the Africa Investment Forum has become a major meeting point for bankable projects in Africa and investors worldwide. "Since its launch in 2018, it has attracted more than 16,500 participants and generated nearly $143 billion in investment interests," he revealed, adding that during the 2022 Market Days of the Africa Investment Forum, the Abidjan-Lagos highway corridor attracted $15.5 billion in investment interests.
Last year as well, the East Africa railway corridor, connecting Tanzania, the Democratic Republic of the Congo, and Burundi, attracted $3.6 billion in investment interest. In summary, "the Africa Investment Forum has so far addressed investment deficits worth $11 billion in liquefied natural gas, renewable energy, agro-industry, industrial manufacturing, creative industry, housing, and transportation," concluded Adesina.
