The size of Africa’s food and agriculture market is projected to rise to $1 trillion by 2030, Akinwumi Adesina, president of the African Development Bank Group (AfDB) has said.
Adesina also said the demand for infrastructure presents an annual investment opportunity of at least $170 billion a year, from energy to transport, digital infrastructure, water and sanitation.
He stated these while delivering a keynote speech at the opening ceremony of the 2024 Africa Investment Forum Market Days in Rabat, Morocco, on Wednesday.
“Our focus is on a triple mandate, to advance high-impact projects to bankability, raise capital and accelerate the closure of deals. By focusing on investment facilitation for Africa, the Africa Investment Forum has become the premier investment platform for Africa.
“Africa presents such a unique investment opportunity which cannot be ignored. Don’t just believe me, believe the data,” said Adesina.
Citing the New York Times, he said that the world was becoming more African, as 1 out of 4 people in the world will be African by 2050. He said the continent’s population would double to reach 2.4 billion by 2050, making it the same size as the combined population of China and India today.
Noting that population is destiny, the AfDB boss said Africa will brim with unparalleled demand for consumer goods and services, digital services and housing, with the demand for housing expected to rise to an investment opportunity of $1.4 trillion.
Read also; How Nigeria can move from consumption to production-driven economy – AFDB
“Your presence here today shows that you see the investment opportunities for value creation in Africa. Again, believe the data,” he added.
A survey of asset managers by the Africa Private Equity Capital Association Survey for 2024 showed that 85 percent of Limited Partners are expected to increase the allocation of private capital in the next two years.
Also, 52 percent of Limited Partners expect that private capital in Africa would be more attractive in Africa than other emerging markets in five years’ time.
Adesina further explained that Africa50 (which he chairs) launched its $500 million Africa Infrastructure Acceleration Fund, reaching its first financial close with 15 institutional investors from Africa.
He also said the Alliance for Green Infrastructure (AGIA) launched by AfDB had garnered the support of the G7 to mobilize $10 billion for investment in green infrastructure in Africa.
The bank’s launch of hybrid capital, the first ever by a multilateral development bank with an issuance of $750 million was oversubscribed 8 times by $6 billion, a remarkable demonstration of investors’ confidence.
According to Adesina, Africa has become the prime investors’ destination in the race for returns in the global energy transition boom because it has large deposits of critical minerals.
“Africa holds 95 percent of chromium, 90 percent of Platinum Group Metals, 2/3 of global reserves of cobalt, 30 percent of lithium and manganese, and 20 percent of graphite—all of which are key for the green transition, from electric vehicles to battery energy storage systems.
“The size of the electric vehicle and battery energy storage systems will rise from $7 trillion in 2030 to $59 trillion by 2050. Africa, which currently serves as a supplier of raw minerals, has a unique opportunity to move up the critical minerals value chain, with investments in critical minerals value-adding industries,” said Adesina.
He also cited Moody’s Analytics assessment of cumulative defaults on infrastructure over a 14-year period which showed that Africa had the lowest default rates in the world — 1.9 percent for Africa; 6.6 percent for North America; 10.1 percent for Latin America; 12.4 percent for Eastern Europe; 4.6 percent for Western Europe and Asia, respectively.
He, therefore, encouraged investors to see Africa as a business destination, adding that the continent was not as risky as perceived.
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