DailySun
This article is part of a joint series with the African Development Bank, commemorating its sixtieth anniversary.
We invite you to visit our dedicated portal to discover the Bank’s history and its initiatives throughout the continent.
The Africa Investment Forum, held in Rabat, Morocco from December 4th to 6th this year, highlighted the continent’s immense investment potential. The event, under the theme “Leveraging Innovative Partnerships for Scale,” marked the highest attendance since its inception in 2018, drawing 1,707 investors from 200 institutions across 83 countries.
In his opening speech, Dr. Akinwumi Adesina, president and chairman of the board of directors of the African Development Bank Group, made a powerful case for increased investments in Africa. He encouraged investors to “trust the data” and not get swayed by negative stereotypes about the continent. He pointed out that Africa is set to represent a quarter of the global population by 2050, leading to a significant rise in the demand for numerous goods and services.
Dynamic Forum Participation Highlights Africa’s Unique Investment Landscape
“The demand for housing is expected to surge, offering an investment opportunity of up to $1.4 trillion. By 2030, the food and agriculture market in Africa is projected to reach $1 trillion. Furthermore, the need for infrastructure suggests an annual investment potential of at least $170 billion across sectors such as energy, transportation, water and sanitation, among others,” he emphasized, noting that “Africa presents a distinctive investment environment that should not be overlooked.”
Dr. Adesina, awarded the “African of the Decade Award” at the end of the forum, remarked that the record attendance reflects the continent’s vast opportunities for value generation. This year’s forum attracted delegates from India, China, and Japan, underscoring its rising influence and growing interest in African investments. A 2024 survey by the Africa Private Equity Capital Association indicated that 85% of limited partners intend to increase their private capital allocations to Africa over the next two years, with 52% finding Africa more appealing compared to other emerging markets within five years. Given that a significant amount of key minerals for the green transition are found in Africa, it is also positioned to boost its electric vehicle production value, which is expected to escalate from $7 trillion in 2030 to $59 trillion by 2050.
Morocco’s Finance Minister Advocates for Structural Reforms
In her welcoming address, Morocco’s finance minister, Nadia Fettah Alaoui, praised the founding partners of the Africa Investment Forum for their collaborative efforts to enhance investment within Africa. “Now, more than ever, development partners need to strengthen their strategic collaborations and work more cohesively for greater impact in addressing the increasing challenges faced by African nations,” she stated.
While recognizing the progress made in attracting private investment, Alaoui emphasized the need for further efforts to close the financing gap for the Sustainable Development Goals. She called on development partners to intensify their support for structural reforms being undertaken by African governments, promoting private initiatives and well-designed, financially sustainable projects. “Such reforms should include measures to strengthen macroeconomic fundamentals and improve the investment climate, ultimately reshaping risk perceptions and dismantling longstanding biases against Africa, to fully harness private stakeholders’ financial capabilities,” she urged. Alaoui also asked global partners to work together in establishing a more effective global financial safety net for prompt and automatic access to liquidity, which would help reduce investment risk premiums.
New Investments Total $29.5 Billion, Significant Agreements Reached
Across previous editions, the Africa Investment Forum has attracted $180 billion in investment interest and facilitated transactions totaling $30 billion, positioning itself as the leading event for channeling investments into the continent. Following three days of focused discussions, this year’s market days at the AIF generated $29.5 billion in new investor commitments across various sectors, including transportation, energy, agribusiness, manufacturing, mining, pharmaceuticals, private equity, tourism, urban infrastructure, and water management. This was achieved through a total of $40.9 billion in deals presented to investors in 41 specialized boardrooms established during the forum, featuring 34 investment-ready opportunities and 7 at the early stage, showcasing a range of possibilities for potential investors.
Several important agreements were finalized during the AIF. Seedstars Africa Ventures I, a venture capital fund focused on early-stage investments in scalable African startups, announced its first closing at $42 million, supported by the African Development Bank, EIB Global (part of the EU’s ACP Trust Fund and Boost Africa initiative), and other international investors. Additionally, the African Development Bank and Bank of Africa SA established a €50 million risk-sharing agreement aimed at boosting private sector financing and enhancing trade within Africa, targeting an additional €200 million in trade support for SMEs across over 20 African countries.
Another agreement was forged between the African Development Bank Group, the Development Bank of Southern Africa (DBSA), and institutional investors to assess a multi-originator synthetic securitization transaction designed to attract private capital and mitigate risks encountered by African development finance institutions. This initiative builds upon the successful $1 billion Room to Run Programme and aims to create a framework to enhance lending capabilities for major projects across climate finance, infrastructure, and financial intermediation.
$6 Billion Mattei Plan Intended to Develop an Energy Hub
At the AIF, a partnership was established between SACE, an Italian insurance-financial group, and the African Development Bank Group to provide credit protection and encourage investments in Africa under the “Mattei Plan.” This agreement is part of a broader initiative by the Italian Government in collaboration with the Bank, aimed at supporting high-impact projects across sectors such as infrastructure,
agribusiness, healthcare, energy, and education. The $6 billion Mattei Plan, introduced earlier by Italian Prime Minister Georgia Meloni, is focused on strengthening economic connections and creating an energy hub, prioritizing countries like Algeria, Egypt, Ethiopia, and Morocco. SACE’s financial offerings, which include the Push Strategy, will enhance connections between African buyers and Italian SMEs, fostering business relations between Italy and Africa.
The AIF is an initiative backed by 9 Development Finance Institutions, including the AfDB Group, Africa50, Afreximbank, IsDB, DBSA, EIB, TDB, BADEA, and AFC. This year, it proudly welcomed the Arab Bank for Economic Development in Africa to its founders’ roster, further broadening its reach and impact.
