THE 2024 Africa Investment Forum (AIF) Market Days kicked off in Rabat, Morocco, today with the African Development Bank (AfDB) revealing its triple mandate to advance high-impact projects by improving capital and accelerating the closure of deals.
The forum arrives at a time when Africa is expected to be critical in global energy transition from fossil fuels, as it has large deposits of renewable energy.
AfDB President Akinwumi Adesina said to accelerate the development of Africa, there was a need for major investment in private capital.
Official opening the 2024 AIF Market Days, which will run for three days, Adesina said Africa needed to ensure that capital was deployed to seize the opportunities that are presented on the continent.
“Our focus is on a triple mandate to advance high-impact projects by improving raised capital and accelerating the closure of deals. By focusing on investment facilitation for Africa, the African Investment Forum has become the premier investment partner for Africa. Africa, ladies and gentlemen, presents a unique investment opportunity which cannot be ignored,” he said.
“Do not just believe me; believe the data. The New York Times said recently that the world is becoming more African. As one out of four people in the world, by 2050, will live in Africa, the continent's population will double to reach 2,4 billion people by 2050. That will be on the same size as the combined population of China and of India. Population is destiny.”
Adesina said Africa would be free from power and demand for consumer goods and services, digital services, as well as housing.
As demand for housing is expected to rise, creating an investment opportunity of up to US$1,4 trillion, Adesina said the size of Africa's food and agricultural markets would rise to US$1 trillion by 2030.
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He added that demand for infrastructure presented an annual investment opportunity of at least US$1,7 billion a year.
He added that energy, transport, infrastructure, water, and sanitation were the other key areas of growth.
“Your presence here today shows that you see the investment opportunity of value creation in Africa. Again, believe the data,” Adesina said.
A survey of asset managers by the Africa Foundation Capital Association for 2024 showed 85% of limited partners expect to increase allocations of private capital to Africa in the next three years.
“Also, 54% of limited partners expect that private capital in Africa will be more attractive than other emerging markets in five years’ time,” Adesina said.
He touted the creation of the US$1,8 billion Africa Infrastructure Acceleration Fund, which will be the first of its kind on the continent.
The fund will support 15 institutional investments in Africa.
According to Adesina, the Alliance for Renewable Stocks, an idea launched by the AfDB, had gathered support to mobilise US$10 billion for investment in green infrastructure in Africa.
The forum is an initiative of nine development finance institutions.
These are the African Development Bank (AfDB), Africa50, African Export Import Bank, Development Bank of Southern Africa, Africa Finance Corporation, European Investment Bank, Trade and Development Bank, Islamic Development Bank, and the Arab Bank for Economic Development in Africa.
