President of the African Development Bank (AfDB) Akinwumi Adesina, has emphasized that Africa represents a unique and lucrative investment opportunity that cannot be overlooked.
Speaking at the opening ceremony of the 2024 Africa Investment Forum (AIF) Market Days in Rabat, Morocco, Adesina outlined the continent’s immense economic potential, noting that Africa’s food market is projected to reach $1 trillion by 2030, while infrastructure investments could require at least $170 billion annually.
Adesina presented compelling data to support his claims, asserting that Africa’s population, expected to double to 2.4 billion by 2050, will drive a surge in demand for consumer goods, services, digital infrastructure, housing, and agriculture. With this demographic shift, Africa is set to become a global powerhouse for investment, with housing demand alone projected to represent a $1.4 trillion opportunity.
“Africa presents a unique investment opportunity,” Adesina said, stressing that the continent’s growing population will create unparalleled demand across sectors. He further pointed to the continent’s increasing attractiveness to investors, noting that 85% of private equity capital managers expect to allocate more funds to Africa over the next two years.
Adesina also highlighted the success of initiatives like the Africa Infrastructure Acceleration Fund, which recently closed with $500 million from 15 institutional investors, and the Alliance for Green Infrastructure (AGIA), which has secured support from the G7 to mobilize $10 billion for green infrastructure investment across the continent.
Turning to energy, Adesina described Africa as a prime destination for investment in the global energy transition, emphasizing the continent’s vast mineral wealth, including critical elements such as cobalt, lithium, and platinum, which are vital for technologies like electric vehicles and battery storage systems. He pointed out that Africa has the opportunity to move up the value chain in the critical minerals sector, citing the example of the Democratic Republic of Congo’s lithium-ion precursor battery plant, which is three times cheaper to develop than in other global markets.
Refuting concerns about Africa’s perceived risks, Adesina presented data showing that Africa’s default rates are lower than many other regions, with only 1.9% of African investments defaulting, compared to higher rates in North America, Latin America, and Eastern Europe. He underscored the role of the AIF in facilitating informed investment decisions, citing its success in mobilizing $180 billion in investor interest over the past five editions and closing deals worth $30 billion.
Adesina concluded by celebrating the AIF’s record achievements, including securing over $15 billion in deals in 2024 alone, and reaffirmed the importance of continuing to match investors with opportunities, accelerate financial closures, and catalyze Africa’s growth.
