Cape Town, Addis Ababa, London, Paris, Washington, Beijing, Dubai, Brasilia, Tokyo
The timely AfCFTA Business Forum, co-hosted by the AfCFTA Secretariat and the Government of South Africa in Cape Town, South Africa this week was a resounding success, according to African institutional investment leaders. The AfCFTA Business Forum, is Africa’s biggest business event focused on accelerating the implementation of the AfCFTA and activating trade and investments.
The Forum convened a broad participation of Africa’s private sector, strategic investors, financial institutions, investment promotion agencies, business councils, chambers of commerce, multinationals, African women and youth business organizations, as well as Heads of Government, Regional Economic Communities (RECs), academia, regional and international media, and AfCFTA Partners.
Speaking during the Summit, Dr Hubert Danso, Chairman of African investor (Ai), the African Union Development Agency Continental Business Network (CBN) and the African Green Infrastructure Investment Bank (AfGIIB), Applauded H.E. Wamkele Mene’s tireless green industrialization leadership and commitment to partnering the African institutional investment community and highlighted, that given today’s multi-polar global trading system competing for the $10trn per annum and growing global green industrial economy, through America’s Inflation Reduction Act (IRA), the EU’s Green Industrialization Plan and China’s belt and road initiative, there is an urgent need for the AfCFTA to co-champion a new investable incentives driven African Green Industrialisation Plan, to attract domestic and global trade related infrastructure and manufacturing investment at scale, that takes full advantage of the AfCFTA, and Africa’s globally recognized and revered, competitive strengths, such as our abundant super natural capital (wind, sun, hydro), our outsized 40% of the globe’s climate transition minerals resource endowment and our human capital youth bulge of 3 billion fellow Africans by the end of the century. Representing over 30% of the global workforce by that point.
In closing Dr Danso restated Africa investor’s continued commitment, to working to increase the AfCFTA’s investment attractiveness and global competitiveness, through the creation of modern green industrial cities and digital trade corridors, powered by ‘green supply chains of the future’, driven by forward-looking regulation as a stimulus, and eTrade marketplaces that enfranchise African SMEs and support the global decarbonisation agenda.
Africa makes for a compelling growth market for long-term global institutional investors, due to its young population, rapidly growing middle class, the increase in mobile phone users on the continent, its super abundant natural capital and oversized clean tech critical minerals endowment and its emerging digital ecosystem, which, unfettered by legacy systems, presents Africa with the opportunity to leapfrog the rest of the world (LINK TO INFOGRAPHIC). With the right policy levers in place to facilitate the uptake of digital technology in both the public and private sectors, Africa can become a digital technology world leader.
Africa investor encouraged the deepening of the ongoing collaborative partnership between the AfCFTA and the private sector, on the Regulations as a Stimulus (RaaS) initiative, the Green Industrial Cities initiative (link to press release), and investable legal and regulatory frameworks, through the Institutional Investor-Public Partnerships (IIPPs) Model Law (link to press release), to provide essential clarity and confidence to the investment community that African trade is a globally competitive investable asset class, which can rapidly boost Africa’s global trade competitiveness and regional integration, whilst delivering competitive risk and climate adjusted returns.
CREATE AS A SEPARATE PAGE THAT’S LINKED TO: See how Africa investor is supporting the African Continental Free Trade Area (AfCFTA)
Ai Academy AfCFTA Investment Action Initiatives
Ai through The Ai Academy, helps investment and business leaders and policy makers to understand the evolution of climate investing in Africa, to enhance their performance, competitiveness and provide a fact base for decision-making at the continental level.
Our AFCFTA investment initiatives and interventions seek to:
- Mobilize private capital at scale for Africa’s Just Energy Industrial Transition,
- Deepen, green and develop resilient supply chains,
- Deploy private capital at speed for Africa’s industrial development and integration,
- Stimulate and support the creation of Just Transition Green Industrial Cities,
- Increase and scale Africa’s access and participation in the $10trn per annum and growing green industrial economy
- Increase MDB de-risking to mobilize private capital for AfCFTA projects
Ai AfCFTA Initiatives;
The first initiative Regulations as a Stimulus initiative (RaaS).
Launched at the 76th UN General Assembly in conjunction with the United Nations Development Programme (UNDP) and the AfCFTA Secretariat. RaaS is an instrument to help Heads of State strategically facilitate intra-African trade for SME’s, in lieu of the monetary stimulus that governments have struggled to implement or sustain during pandemics or economic downturns. RaaS can have a substantial impact on the African economy.
With the immediate implementation of RaaS, intra-African trade could be boosted by $7.2bn per annum over the next five years and could add $500 billion to business revenue. Additionally, it could create over 260,000 more jobs by 2027 – if transformative action is taken in five key areas: access to finance, business environment, infrastructure, before the border charges (export, import documents and procedures), and at the border costs. RaaS facilitates inclusion and tackles inequality, since sectors where women are predominant, such as food, soft commodities, and textiles are projected for an 18 per cent uplift.
Read more:
The second initiative The ICC-AfricaPLC Digitise 5 Million SMEs Campaign. A partnership between Africa investor’s E-Trade platform AfricaPLC and the International Chamber of Commerce (ICC) to connect pan-African and global businesses, investors, and Chambers of Commerce through AfricaPLC.com as its eTrade and FinTech platform.
The third initiative was on Trade Related Infrastructure Investment and the AUDA-CBN 5% Investment Agenda. This is a key AUDA-NEPAD, CBN, and African Sovereign Wealth Fund and Pension Fund leaders Forum initiative, designed for the continent’s post-pandemic industrial infrastructure investment recovery, which features a new AfCFTA Supportive Partnership Model where African and global institutional investors pursue competitive risk-adjusted returns, on the back of transactions structured by African Trade Banks, and guaranteed by Export Credit Agencies (ECAs) such as the ECA Backed Loan schemes:
Read more – Link to AfCFTA section pdf of the Investable Africa report section
Fourth initiative: AfGIIB Building and Supporting Resilient AfCFTA Supply Chains
The African Green Infrastructure Investment Bank (AfGIIB) platform, is an African Union convened, African institutional Investor led global investment platform, to catalyze private capital for Africa’s green transition. AfGIIB has a priority focus to invest in resilient supply chains that support of the implementation of the continent’s $3.2 trillion-AfCFTA and assist private companies, especially African SMEs, in greening their supply chains across Africa, through corporate power purchase agreements (PPAs) and export credit solutions.
Read more www.afgiib.com
The Fifth initiative: The Ai African Electronic Trade Leaders Roundtable hosted by Africa investor (Ai) in collaboration with the AfCFTA Secretariat
The Ai African Electronic Trade Leaders Roundtable bought together African and global Secretary Generals, business and government leaders, heads of Customs Organizations and Chambers of Commerce, to share their insights on the latest industry needs, trends, tools and innovations and regulatory frameworks, to facilitate a dialogue on implementation and innovative digitization partnerships, to improve access to, and the quality and quantity of African buyer information, eTrade documentation and Electronic Certificates of Origin solutions, in support of the African Continental Free Trade Area (AfCFTA).
Watch here: https://www.youtube.com/watch?v=SPIv2xe6zCs
The Sixth initiative: The Just Transition Investors Alliance (JTIA)- Green Industrial Cities Initiative
The Just Transition Investors Alliance (JTIA), launched at COP27, is an investor led, Just Transition Value Chain Investment Initiative, to manufacture and procure ‘finished goods’, from AFCFTA supported Just Transition Green Industrial Cities, predominantly located in places dependent on mining and highly carbon intensive industries, supplying the $10trn pa, Global Green Industrial Economy (GGIE).
The Just Transition Investors Alliance (JTIA), partners include The African Union Development Agency (AUDA), The African Continental Free Trade Area Secretariat (AfCFTA), The Continental Business Network (CBN), the African Green Infrastructure Investment Bank, The African Sovereign Wealth and Pension Fund leaders Forum, Africa investor (Ai) Group, the International Chamber of Commerce (ICC), The World Benchmarking Alliance and the Council for Inclusive Capitalism.
Read more: https://www.africainvestor.com/african-just-transition-investors-alliance-jtia-launched-at-cop27/, www.jtia.biz
The Seventh initiative: The AfricaPLC Roadmap Report on globalizing Africa eTrade in support of the African Continental Free Trade Area (AfCFTA)
The AfCFTA and digitalization is an economic gamechanger for Africa. The AfricaPLC eTrade Roadmap Report is a call to action for the digitalization of the AfCFTA, to increase the AfCFTA’s investment attractiveness and global competitiveness, through the creation of modern digital trade corridors, powered by ‘green supply chains of the future’, driven by forward-looking regulation and eTrade marketplaces that enfranchise African SMEs and support the global decarbonisation agenda.
Read more: https://www.africainvestor.com/ai-africaplc-releases-afcfta-e-trade-digitalization-report/ Report: https://africaplc.com/wp-content/uploads/2021/05/AfricaPLC-eTrade-Report_050721-Final-Release.pdf
Eighth initiative WTO Public Forum – Ai delivers Private Sector Briefing
During the 76th session of the UN General Assembly, Dr Hubert Danso, Chairman of African investor (Ai) and the Chairman of the African Union Development Agency Continental Business Network (CBN), addressed the World Trade Organisation (WTO) Public Forum Session. He discussed building resilience through strengthened regional integration and African Continental Free Trade Area (AfCFTA) implementation.
This high-level WTO session highlighted the importance of regional integration in building Africa’s resilience to global economic shocks. In his address, Danso briefed WTO delegations on three key investor-led initiatives:
9th initiative Ai Briefs Citi Bank Treasury and Trade Solutions Clients on the Benefits of the Africa Continental Free Trade Area (AfCFTA)
Exploring the Benefits of the Africa Continental Free Trade Area (AfCFTA) hosted by Citi Treasury and Trade Solutions
Minaz Bhuiya, Citi Treasury and Trade Solutions SSA Head for FI & Correspondent Banking talks with Dr. Hubert Danso, CEO and Chairman for Africa Investor (Ai) Group Explore the Benefits of the Africa Continental Free Trade Area:
For more information contact: Wendy Edwards: wedwards@africainvestor.com
About Africa investor (Ai)
Africa investor (Ai) is an investment holding platform that aligns its client base of sovereign wealth funds, pension funds, family offices, and long-term investors with vetted infrastructure, private equity, and technology investment opportunities in Africa. Ai was founded in 2002 to facilitate investments across Africa and do one thing: be the Pan African specialist advisory service to assist and advise African project developers access international capital and provide foreign investment and transaction advisory services to African governments, the private sector, and global investors. This remains our singular purpose today, underpinned by deep fundamental research, the pursuit of investment insights and continuous innovation, facilitated by over 70 years’ industry experience working across every market on the African content.
The Ai Group provides secure, easy to use transaction platforms and investment advisory services, strategic research, investment indices, and investment communication services to support its clients’ investment programmes in Africa. Africa investor advises clients from around the globe, acting as a principal investor in strategic assets on the continent through Ai Capital.
Ai also benefits from specialist insights and the operational experience of the Ai Advisory Board and Ai Academy Leaders Forums, on Sovereign Wealth and Pension Funds, Family Offices, Infrastructure Project Development, and Emerging Investment Managers.
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