Your Majesty, King Mohammed VI of the Kingdom of Morocco.
Excellencies,
The Honorable Minister of Finance and Economy of Morocco, Nadia Fettah Alaoui,
Honorable Ministers and senior government officials.
President of the European Bank for Reconstruction and Development, Odile Renaud-Basso.
The President of the Africa Export-Import Bank, Benedict Oramah, represented by Haytham El Maayergi, Executive Vice President,
The President of the Africa Finance Corporation, Samaila Zubairu
The Chief Executive Officer of Africa50, Alain Ebobisse,
The Chief Executive Officer of the Development Bank of South Africa, Boitumelo Masako,
The President of the Islamic Development Bank, Dr. Muhammad Al Jasser, represented by Hani Sombol, Chief Executive Officer of the International Islamic Trade Finance Corporation,
The President Emeritus and Managing Director of the Trade and Development Bank, Admassu Tadesse,
The President of the European Investment Bank, Nadia Calvino, represented by Abroise Fayolle, Vice President,
The President of the Arab Bank for Economic Development in Africa, Dr. Sidi Oud Tah,
Business leaders and investors from around the world.
Executive Directors of the African Development Bank Group,
Members of the media
My darling wife, Grace.
Distinguished ladies and gentlemen.
Good morning!
I am delighted to welcome you all, on behalf of all the partners of the Africa Investment Forum, to the Africa Investment Forum Market Days for 2024.
We are especially honored to be, again, graciously hosted by the government of the Kingdom of Morocco, in this beautiful capital city of Rabat.
I wish to especially pay homage to and immensely express our deep gratitude to His Majesty King Mohammed VI for placing the Africa Investment Forum Market Days for 2024 under his high patronage.
I applaud His Majesty’s leadership, passion, drive and commitment to promoting private sector investments in Africa.
I am fully convinced that the accelerated development of Africa requires greater mobilization of private capital.
We must make room for capital to be deployed to meet opportunities in Africa. At the Africa Investment Forum, this is the driving principle that brought us together as Founding Members, including the African Development Bank Group, Africa50, Africa-Export Import Bank, the Development Bank of Southern Africa, the Islamic Development Bank, the European Investment Bank and the Trade and Development Bank.
I am pleased today to welcome the Arab Bank for Economic Development in Africa, as it joins the Founding members. I am pleased that my colleague, the President of the European Bank for Reconstruction and Development Bank (EBRD) is here today, and I am sure the Bank will also join the platform, as we pull together for advancing investments in Africa.
I wish to thank all the corporate sponsors for the Market Days for 2024 for your incredible partnership.
Together, we are on a journey to transform Africa with private capital.
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.
The New York Times said that the world is becoming more African, as 1 out of 4 people in the world by 2050 will be African. The continent’s population will double to reach 2.4 billion by 2050. That will be the same size as the combined population of China and India today.
Population is destiny. Africa will brim with unparalleled demand for consumer goods and services, digital services, as well as housing, with the demand for housing expected to rise to an investment opportunity of $1.4 trillion.
The size of Africa’s food and agriculture market will rise to $1 trillion by 2030. Demand for infrastructure presents an annual investment opportunity of at least $170 billion a year, from energy to transport, digital infrastructure, water and sanitation.
Your presence here today shows that you see the investment opportunities for value creation in Africa.
Again, believe the data.
A survey of asset managers by the Africa Private Equity Capital Association Survey for 2024 shows that “85% of Limited Partners expect to increase allocation of private capital in the next two years”.
Also, “52% of Limited Partners expect that private capital in Africa will be more attractive than other emerging markets in five years’ time”.
We are seeing that attractiveness today, not five years.
Africa50 (which I chair) launched its $500 million Africa Infrastructure Acceleration Fund reaching first financial close with 15 institutional investors from Africa.
The Alliance for Green Infrastructure (AGIA) launched by the African Development Bank has garnered support of the G7, to mobilize $10 billion for investment in green infrastructure in Africa.
The African Development 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.
Africa has become the prime investors destination in the race for returns in the global energy transition boom.
That’s because Africa will be critical for global energy transition, as it has large deposits of the critical minerals.
Again, believe the data.
Africa holds 95% of chromium, 90% of Platinum Group Metals, 2/3 of global reserves of cobalt, 30% of lithium and manganese, and 20% of graphite—all of which are key for 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.
Take for example that the development of lithium-ion precursor battery plant in Democratic Republic of Congo will be 3 times less expensive than in the United States of America, China or Poland, according to Bloomberg NEF report.
Africa needs investors in supporting its ambition to become a green energy power hub for the world.
Africa is not as risky. Perception is not reality.
Again, believe the data.
Moody’s Analytics assessment of cumulative defaults on infrastructure, over a 14-year period shows that Africa has the lowest default rates in the world. Default rates were 1.9% for Africa; 6.6% for North America; 10.1% for Latin America; 12.4% for Eastern Europe; 4.6% for Western Europe and Asia, respectively.
The Africa Investment Forum goal is to help investors take informed investment decisions on projects in Africa. Our purpose remains the same: match investors with opportunities; mobilize capital; and accelerate financial closure for projects.
The Africa Investment Forum has a strong record. In the past 5 editions, it has mobilized $180 billion of investor interests to Africa. It has fully closed transactions worth $30 billion and continues to fast-track a lot more to financial closure.
I commend our AIF partners and their staff for their collaboration and exceptional work. This year, AIF partners originated deals worth over $15 billion—a record.
Over the next three days, we will have 41 investment board rooms on project opportunities across Africa.
The Investor Blast of the AIF reached out to 2,298 single investors. I am delighted to inform you that 1,707 investors from over 200 institutions, globally, have been cleared to proceed to the board rooms. They come from 83 countries. This marks a landmark record for the Africa Investment Forum and is an incredible demonstration of appetite for investment projects in Africa.
There’ll be excellent opportunities for business-to-business interactions and engaging panels on how to expand investment opportunities in Africa.
The board rooms are ready.
The project developers are ready.
The investors are ready.
And the governments are ready.
Africa is bankable!
So, let the deals begin!
Welcome again.
Thank you very much.
