Opportunities for investment in Africa often outweigh the obstacles, the African Development Bank’s first Africa-to-Africa (A2A) Investment Report has said.
The Report unearths the realities African companies face when investing in Africa, the emerging trends in A2A investment and the steps African policymakers can take to accelerate intra-African investment.
Africa-to-Africa Investment Report: A first look, copied to the Ghana News Agency, found that more African companies are investing in Africa.
It said those companies had confidence in the Continent’s long-term growth potential; they are at the cutting edge of their industries and are capitalising on their knowledge of local markets to generate higher returns and impact.
In line with the Bank’s High 5s for transforming Africa and the African Union’s Agenda 2063, the A2A Report aims to take the conversation on investing on the Continent a step further.
It shows what African multinationals are doing to drive investments in Africa, how they are expanding their African footprint, and gives insights into how to scale-up investments more widely.
“As global foreign direct investment to Africa falls, intra-African investments are picking up pace,” said Akinwumi A. Adesina, the President of the African Development Bank Group.
“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”.
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).
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 business case for A2A investment is strongly connected to the Continent’s integration, growth and prosperity. Although challenges remain, the A2A Report is the start of a broader discussion to fast-track investments, move beyond the wish list and make deals happen.
The Report said the Continent’s policymakers could inspire a greater level of confidence and promote A2A investments by highlighting their role as dependable business partners for African investors.
The Report is part of the Bank Group’s continued championing of investment across Africa.