United Kingdom (UK) companies have to grab the chance to deepen economic ties with Africa, a continent with unmatched investment opportunities, several African leaders have said at a high-level panel at the oversubscribed opening ceremony of the UK-Africa Investment Summit held in London on 20th January, 2020.
Dignitaries and delegates from 16 African countries, including President El Sisi of Egypt and British Prime Minister Boris Johnson, made the case for bigger investments in Africa and called for increased and renewed partnership between the UK and Africa.
In an opening address in which Prime Minister Johnson referred to Africa as a booming continent with “staggering levels of growth,” he said: “Look around the world today and you will swiftly see that the UK is not only the obvious partner of choice, we’re also very much the partner of today, of tomorrow and decades to come.”
PM Johnson announced that “From today, the British government will no longer provide any new direct development assistance for thermal coal mining or coal power plants overseas.” The UK-Africa Investment Summit, the first of its kind hosted by the UK government, was attended by Foreign Secretary Dominic Raab, International Development Secretary Alok Sharma, and Prince Harry.
Ghanaian President Addo Dankwa Akufo-Addo, Kenyan President Uhuru Kenyatta, Mauritanian President Mohamed Ould Cheikh el Ghazouani, African Development Bank President Akinwumi Adesina, and MP Sharma addressed a plenary panel discussion on ‘Sustainable Finance and Infrastructure – Unlocking the City of London and UK financial services for growth in Africa.’
Responding to a question about UK-Ghana partnership, President Akufo-Addo said “the City of London can play a significant role in bridging Africa’s huge infrastructure gap … and LSE can be a pivot in the new relationship with the continent. Indeed, one in four consumers will live in Africa by 2030,” he said.
President Kenyatta, who rang the opening bell at the London Stock Exchange (LSE) to mark the launch of Kenya’s first green bond at the LSE, made the case for innovative and sustainable investments in energy infrastructure. “We all must think out of the box in terms of energy…to ensure we produce more green energy. This first-ever sovereign green bond of $41.45 million will be used to build environmentally-friendly student accommodation in Kenya,” he said.
President Cheikh el Ghazouani shared opportunities offered by the blue ocean economy and substantial reforms currently under way to attract foreign investors.
“We have reinforced security along our coasts. Other measures include the establishment of a Council on Investment. These huge efforts are showing tremendous results and it is giving comfort to investors,” he noted.
Africa is home to eight of the 15 fastest-growing economies in the world. By 2030, 42% of the world’s youth will be African and will constitute an incredible workforce and potential consumers. Dr. Adesina announced a new $80 million AfDB-Department for International Development infrastructure financing partnership.
According to Dr. Adesina, the continent’s $68-$108 billion infrastructure investment gap per year is massive, but it depends how one looks at it. “Either the cup is half full or half empty. To us, that is a $68-$108 billion opportunity.” He added, “The issue of risk in Africa is exaggerated. The risk of loss is lower than Latin America. Yet, funds are not being channeled into Africa. There are $8 trillion of assets under management in London, but only 1 percent is invested in Africa.”
The AfDB president urged investors to look to Africa and recalled the achievements of the Africa Investment Forum – a game-changing initiative led by the AfDB and key partners to accelerate investment in the continent. The unique multi-sector platform is designed to advance bankable deals to financial closure. At the 2019 forum, which took place in Johannesburg, South Africa, deals valued at $40.1 billion secured investment interest.
In his concluding remarks, MP Sharma expressed confidence in the continent with “Africa has a fabulous future.” He announced five partnerships to mobilize private sector investment in quality infrastructure on the continent. “The City of London can play a role in mobilizing resources for Africa,” he said.
By Ayuure Kapini Atafori
