The African Development Bank (AfDB) on Monday reported that opportunities for investment in Africa outweigh the obstacles despite the sundry challenges companies are contending with in the various countries.
The continental development finance institution in a news report distributed on its behalf by the African Press Organisation (APO) Group, stated in its maiden Africa-to-Africa (A2A) Investment Report that more African companies were investing in Africa based on their confidence in the continent’s long-term growth potential
The report, which is published by the bank on inter-African investments, reflected the realities African companies face when investing in the continent, the emerging trends in A2A investment and the steps African policymakers can take to accelerate intra-African investment.
The Africa-to-Africa Investment Report indicated also that the African companies investing in Africa were at the cutting edge of their industries, and are capitalizing on their knowledge of local markets to generate higher returns and impact.
The news report stated further that in line with the bank’s High 5s for transforming Africa and the African Union’s Agenda 2063, the A2A Report aimed to take the conversation on investing in the continent a step further.
The A2A Report showed also what African multinationals were doing to drive investments in Africa, how they were expanding their African footprint, and gave insights into how to scale-up investments more widely.
Commenting on the findings of the maiden report, AfDB’s President, Dr. Akinwumi Adesina noted that“as global foreign direct investment to Africa falls, intra-African investments are picking up pace.
“Africa’s big companies are increasingly on the move and expanding their African footprint. It is through more investments that the continent can build inclusive, sustainable growth and development. We have made this our collective commitment in the High 5s”, he added.
The A2A Report features eight publicly-listed and privately-owned African companies operating in consumer services, finance, industry, media and diversified portfolios and investment, with home bases in North Africa (Morocco), West Africa (Nigeria, Togo), East and Central Africa (Ethiopia, Kenya) and Southern Africa (Mauritius, South Africa).
Some of the major highlights from the Report’s intra-African investment stories include the importance of having a clear long-term vision, getting up-to-date investment facts, building local partnerships to deliver on the ground and tapping into talent in the local labour force.
The AfDB indicated further that the business case for A2A investment was strongly connected to the continent’s integration, growth and prosperity even as it noted that although challenges remained, the A2A Report was the start of a broader discussion to fast-track investments, move beyond the wish list and make deals happen.
