Africa’s vast economic potential and transformative investment opportunities were the highlights of the 2024 Africa Investment Forum (AIF) Market Days, held in Rabat, Morocco. Akinwumi Adesina, president of the African Development Bank (AfDB), maintained that the continent’s growth trajectory positions is a prime global investment destination. He described Africa as an “unmissable opportunity,” supported by robust data and trends.
Booming Markets and Infrastructure Needs
Adesina projected Africa’s food and agriculture market to grow to $1 trillion by 2030. Simultaneously, annual infrastructure investment opportunities, spanning energy, transport, and digital systems, are valued at $170 billion. Housing demand is also expected to surge, translating into a $1.4 trillion market opportunity. These figures align with Africa’s rapid population growth, which is set to double to 2.4 billion by 2050, equating to a quarter of the global population.
Milestones in Infrastructure Financing
The AfDB and its partners are driving infrastructure financing. The Africa Infrastructure Acceleration Fund has attracted $500 million from 15 institutional investors, while the Alliance for Green Infrastructure (AGIA) aims to mobilize $10 billion, with backing from the G7. Additionally, the AfDB’s issuance of $750 million in hybrid capital was oversubscribed eightfold, reflecting global investors’ confidence in Africa’s markets.
Critical Role in Global Energy Transition
Adesina also highlighted Africa’s critical role in the green energy transition due to its abundant reserves of essential minerals. The continent holds significant percentages of global chromium, cobalt, platinum, lithium, and graphite reserves—resources pivotal for electric vehicles and battery technologies. A shift from raw mineral exports to value-added industries could further elevate Africa’s economic standing. For example, setting up a lithium-ion battery precursor plant in the Democratic Republic of Congo would be three times cheaper than in China or the U.S.
Africa is “Not as Risky”
Countering perceptions of high risk, Adesina cited data showing Africa’s default rates at 1.9%, significantly lower than North America (6.6%) and Latin America (10.1%). The Africa Investment Forum has also demonstrated its efficacy, mobilizing $180 billion in investor interests over five editions and closing $30 billion in transactions.
Is Africa The Next Frontier
With its strong demographic trends, growing markets, and commitment to sustainability, Africa stands poised to redefine the global economic landscape. The challenge, as Adesina emphasized, lies in seizing this momentum through informed investments and strategic partnerships.
