DailySun
The Africa Investment Forum (AIF) this year, held in Rabat, Morocco from December 4th to 6th, generated $29.5 billion in new commitments from investors for various projects across the continent.
These commitments were made following the presentation of deals valued at $40.9 billion across 41 dedicated boardrooms during the forum. Among these, 34 deals were ready for investment, while 7 were still at the preliminary development stage.
This year’s event achieved the highest participation rate since its launch in 2018, drawing in 1,707 investors from 200 institutions across 83 nations.
At the AIF, several significant agreements were made. Seedstars Africa Ventures I, a venture capital fund focused on early-stage investments in scalable African startups, announced its first close of $42 million, with support from the African Development Bank, EIB Global (under the EU’s ACP Trust Fund and Boost Africa initiative), among other global investors. Furthermore, the African Development Bank and Bank of Africa SA finalized a €50 million risk-sharing agreement to enhance private-sector financing and promote African trade, aiming to generate an additional €200 million in trade and support SMEs in over 20 African countries.
Additionally, another agreement was reached among the African Development Bank Group, the Development Bank of Southern Africa (DBSA), and institutional investors to explore a multi-originator synthetic securitization initiative designed to mobilize private capital and mitigate risks for African development finance institutions. This initiative builds upon the success of the Bank’s $1 billion Room to Run Programme, establishing a platform to enhance lending capacity for impactful projects in climate finance, infrastructure, and financial intermediation.
Momentum for Italy’s Mattei Plan
The AIF also featured the signing of an agreement between SACE, an Italian insurance and financial group, and the African Development Bank Group to provide credit protection and promote investments in Africa under Italy’s Mattei Plan. This agreement forms part of a broader initiative by the Italian Government and the Bank, aimed at supporting major projects in sectors like infrastructure, agribusiness, healthcare, energy, and education.
The $6 billion Mattei Plan, announced earlier this year by Italian Prime Minister Georgia Meloni, seeks to strengthen economic ties and establish an energy hub, focusing on countries such as Algeria, Egypt, Ethiopia, and Morocco. SACE’s financial tools, including the Push Strategy, are designed to facilitate connections between African buyers and Italian SMEs, thus improving business relations between Italy and Africa.
Adesina urges faith in data
At the opening of the forum, Akinwumi Adesina, president and chairman of the board of directors of the African Development Bank Group, strongly encouraged increased investment in the continent, urging investors to “believe the data” and overlook outdated misconceptions about Africa. He pointed out that by 2050, Africa is projected to constitute a quarter of the global population, significantly heightening demand for goods and services.
“The anticipated demand for housing is expected to create investment opportunities of up to $1.4 trillion. The value of Africa’s food and agriculture market is projected to reach $1 trillion by 2030. Moreover, the demand for infrastructure offers an annual investment opportunity of at least $170 billion across energy, transport, infrastructure, water sanitation, and other crucial sectors,” he emphasized, adding that “Africa offers a unique investment opportunity that cannot be ignored.”
This year’s forum hosted delegations from diverse countries, including India, China, and Japan, highlighting its impact and the growing interest in the opportunities available on the continent. According to a 2024 survey by the Africa Private Equity Capital Association, Adesina noted that 85% of limited partners plan to increase their allocation of private capital to Africa within two years, while 52% believe that Africa’s private capital will become more attractive than that of other emerging markets in the next five years.
Furthermore, with a significant portion of key green transition minerals, Africa holds a unique opportunity to advance in electric vehicle production value, which is expected to rise from $7 trillion in 2030 to $59 trillion by 2050, he remarked.
The AIF is a collaboration among nine development finance institutions, including the AfDB Group, Africa50, Afreximbank, IsDB, DBSA, EIB, TDB, BADEA, and AFC. This year, it welcomed the Arab Bank for Economic Development in Africa as a new member.
