By Amaechi Ogbonna, just back from Marrakech
His voice was loud as thunderstorm and clear as crystal at the Palais des Congress in Marrakech, in the Kingdom of Morocco, when he spoke as captain of Africa’s financial powerhouse at a briefing to draw the curtain on the three -day Africa Investment Forum (AIF) back in November.
In that palacious event centre, Dr Akinwunmi Adesina, President and Chairman of the Board of the African Development Bank (AfDB) was glaringly forthright and resolute in his commitment, while telling the global business community the truth many never knew about Africa, the land of precious stones, gold, lithium, diamonds, crude oil, gas and several other natural resources with enormous potential to unleash growth, wealth, profit for investors, jobs for the youths and industrialisation that will transform the continent to a global economic powerhouse.
As in other fora since his presidency, Adesina had used every opportunity available to him to tell Africa’s compelling story to the world and stressing its desire to enjoy a bigger share of the economic pie, especially in the areas of trade, investment and business competitiveness.
Rather than remain exporters of raw materials and primary products and earning so little from them to cater for its growing youth population, the AfDB helmsman had preached the gospel of value addition that would make the continent earn more revenue for its labour and resources to challenge the current discriminatory economic order.
African accounts for about 3 percent of the world’s trade in goods while transactions among countries within the continent have remained at a very low ebb.
But what perhaps appears most worrisome to the AfDB boss and his team is the low level of infrastructural development across Africa where an estimated 95million citizens in Nigeria for instance lack access to stable electricity, portable water, good roads, health, food and transportation facilities to mention a few.
Africa is home to an estimated 1.3billion people with a combined GDP of about $3.4trillion, making it one of the richest continents in the world today by potential.
But its lack of basic infrastructure to drive economic and industrial development continues to vitiate these potential and make most of its estimated 477million youths jobless thereby exposing them to life threatening situations.
But the just concluded 2023 Africa Investment Forum (AIF) in the beautiful city of Marrakech, was yet another opportunity for the AfDB boss to draw global attention to the urgent need to reset African nations’ development narrative to enable them play more prominent roles in the fourth industrial revolution.
With over 1000 delegates from across Europe, United States of America, Asia and the African continent in attendance, Adesina’s message struck the right chord with participants at the Africa Investment Forum (AIF) Market Days 2023 event in Marrakech, by attempting to challenge an age -long perception of many foreigners who see Africa as home for only the wretched of the world.
At that particular event, Adesina unveiled Africa’s secret as a continent of immense opportunity and one that is ready to do more business with discerning investors already set to take vantage positions as proven in the outcome of various boardroom deals.
The Nigerian -born board strategist and multilingual administrator, popularly called by associates at the continental bank as the “Optimist General of the AfDB” for his passionate commitment to Africa’s transformation agenda, however left no one in doubt as to why he wants a better deal for Africa going forward.
An excited AfDB chief declared “We are building a financial powerhouse around investments in Africa.” Market Days boardrooms. And now, it gives me great pleasure to announce that thanks to all your collective efforts, the Africa Investment Forum 2023 was a great success.
We successfully secured $34.82 billion of investment interests!
What an incredible achievement, all in just 72 hours! I said, “let’s do it again.” And we did it! And you did it! Thank you very much once again. These investments will deliver transformative impacts on the lives of people. That is the bottomline of the Africa Investment Forum: investing to improve lives.”
But for those who had committed to leveraging the AIF 2023 to invest in Africa, one clear takeaway from the AfFB boss’s body language was an assurance of a double digit return from such ventures.
In his closing press conference at the Palais des Congres, venue of the forum, Adesina’s voice thundered in admiration of the resounding success the 2023 AIF had recorded, while he acknowledged the active support of King Mohammed 1V and his minister of Economy who helped facilitate it.
He said “Several months ago, we the founding partners of the Africa Investment Forum made the decision to have the 2023 Africa Investment Forum Market Days in Marrakesh, Morocco.
You all came from around the world, Heads of state and governments, ministers, project developers, investors, with one purpose in mind: deals, deals and deals.”
Among investors from around the world, we were delighted to also host a delegation of 50 business leaders from Japan.
What a commitment we have! Thank you all very much for coming all the way.
Morocco is the right choice.
Since we arrived in the beautiful and resilient city of Marrakesh, we have been treated to incredible hospitality for which Morocco is well known. And that hospitality and warm welcome flowed directly from the heart of His Majesty, King Mohammed VI (May God assist him).
His Majesty graciously placed the event under his own high patronage. His message to us all said, “Initiatives such as the Africa Investment Forum … are commendable because they help direct private investment towards most promising economic sectors, thus reinforcing the integration of African economies into global value chains.”
His Majesty further said, “I am sure that this year’s Forum will be even more enriching, and that it will send a strong signal to investors as to African countries’ commitment to transformative investment … to fulfil the aspirations of our continent, our populations, and our youth.”
The AfDB boss further noted that throughout the three- day event, the royal inspiration from the Moroccan monarch like a renewable energy, powered the discussions of participants, as the Palais des Congrès was transformed into a beehive of discussions, engagements, analysis and assessments on projects.
He noted that the opening high-level panel discussion of Heads of state and government was very inspiring, showing that the leaders came to show strong support for investments.
“The boardrooms were packed. In several cases, heads of state and government chaired discussions of projects from their countries. They were truly there as Chief Executive Officers of their countries, fielding questions and providing assurances and reassurances to investors.
Project developers and investors looked at investment opportunities in several areas, including food and agriculture, renewable energy, mining, transport corridors, aviation, deep-water seaports and railways, ICT, digital infrastructure, artificial intelligence, creative industries and health.”
Other events focused on Regional Corridors, the Mayor’s Forum and the Special Agro- Industrial Processing Zones, were all exciting and powerful for driving greater investments in transport corridors, urban infrastructure and finance, and in food and agribusiness.” He enthused.
According to Adesina, among the major landmark developments at the AIF 2023 were the signing of a Letter of Intent with the Chief Executive Officer of the Mohammed VI Investment Fund, to invest in supporting the private sector, especially small and medium sized enterprises and infrastructure in Morocco—a great vision by His Majesty King Mohammed VI.
He also informed his audience of partnerships forged with the launch of the Alliance for Special Agro-Industrial Processing Zones with a commitment of $3 billion by the partners, including the African Development Bank, the Africa Export-Import Bank, the United Nations Industrial Development Organisation, and Arise Integrated Industrial Platforms.
For the AfDB boss and the high level delegation that graced the occasion, it was an opportunity for Africa to Celebrate its diversity, commitment and partnerships to change the history of a continent that has over the years been associated with very low demographics in human development index.
Having been wrongfully and derogatorily tagged as the land of poverty, diseases, crime, unemployment, conflict and land without electricity for majority of its citizens, the AIF 2023 thus became a watershed event many at AfDB and across the world are hopeful could trigger a whole lot of possibilities to reset and transform the African narrative as a continent of opportunities.
It was these partnerships driven by investment that prompted the participation of institutions like the United Kingdom Export Finance, Multilateral Investment Guarantee Agency (MIGA), the International Finance Corporation, Saudi Arabia Ministry of Investments, United States Trade and Development Agency, the European Bank for Reconstruction and Development, the Japan International Cooperation Agency and the Japan Bank for International Cooperation, among several others.
Other sectors captured in the various deal rooms at event were mining, creative industry, ICT, Artificial Intelligence, deep sea seaports, railways, health and special agro industrial processing zones and industrial corridors.
Adesina also said that new alliances were formed for special agro investment zones as participants celebrated Africa’s diversity and commitment driven by investment.
He stated that the AfDB was building a formidable power house for investment in Africa through the investment forum which began over five years ago.
Among the projects covered in the discussion according to the AfDB boss are the $5.9billion railway project in Tanzania, public private partnership power transmission project in Kenya and Ghana as well as an electric vehicle factory project in Zambia.
Also captured in the 2023 deal rooms was the Morocco gas pipeline finance project , the financing of a soda ash plant in Egypt, hydro power plant in Mozambique and the strengthening of electric transmission grid in parts of Africa.
Equally revealed at AIF 2023 was that the board of continental finance institution had formally approved the establishment of the Youth Entrepreneurship Investment Bank for Liberia and six other countries.
The Liberian bank will be capitalised with $16million, while six other banks will be commissioned when feasibility works on them are finalised.
According to Adesina, part of the initiative for setting up the bank was to curb joblessness among Africa’s estimated 477million youths, many of whom have suffered needless deaths crossing the Mediterranean Sea in search of better life in Europe.
“ We must set up financial institutions fully dedicated to youths and women if we must grow the African economy.” He said.
Also paying glowing tribute to his and other stakeholders, he said “The most important are you the participants! A very big thank you!
A big thank you to our Heads of state and government, ministers and government leaders.
So many people worked so hard to make this Forum such a great success. A big thank you to the project developers. A big thank you to the investors. A big thank you to the government and the people of Morocco for incredible support.
A big thank you to my own Executive Directors at the African Development Bank, several of whom participated actively.
A big thank you to the senior management and staff of the Africa Investment Forum founding partners: the African Development Bank, the Africa Export-Import Bank, Africa50, the Africa Finance Corporation, the Development Bank of Southern Africa, Trade and Development Bank, Islamic Development Bank and the European Investment Bank.
“We could not have pulled this off without the Senior Director of the Africa Investment Forum, Chinelo Anohu and all the staff of the African Development Bank and partner institutions, that worked together.
Of course, I have fantastic senior leadership at the African Development Bank, led by my Senior Vice President, Swazi Tshabalala among others.