By African Development Bank Group
Published January 25, 2020
British companies must leap at the chance to deepen economic ties with Africa, a continent with unmatched investment opportunities.
At an oversubscribed opening ceremony for the 2020 UK-Africa Investment Summit, attended by dignitaries and delegates from 16 African countries, British Prime Minister Boris Johnson made the case for bigger investments in Africa and called for increased and renewed partnership between Britain and Africa.
Referring to Africa as a booming continent with ‘staggering levels of growth,’ in his opening address, Premier Johnson 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.”
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The UK-Africa Investment Summit, the first of its kind hosted by the UK Government, was attended by the foreign secretary, Dominic Raab, the international development secretary, Alok Sharma, and Prince Harry.
Presidents Uhuru Kenyatta of Kenya, ana Akufo Addo of Ghana and Mohamed Ould Cheikh el Ghazouani of Mauritania attended a plenary panel discussion titled ‘Sustainable Finance and Infrastructure – Unlocking the City of London and UK financial services for growth in Africa,’ that was addressed by Sharma.
President Kenyatta who rang the opening bell at the London Stock Exchange (LSE) marking 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 US$41.45 million will be used to build environmentally-friendly student accommodation in Kenya.”
African Development Bank President Akinwumi Adesina announced a new US$80 million Bank-DFID infrastructure financing partnership.
According to Adesina, the continent’s US$68-US$108 billion infrastructure investment gap per year is massive.
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“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 US$8 trillion of assets under management in London, but only 1 percent is invested in Africa,” Adesina said.
Adesina urged investors to look to Africa and recalled the achievements of the Africa Investment Forum – a game-changing initiative led by the African Development Bank 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 US$40.1 billion secured investment interest.
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.