The Africa Investment Forum gets underway in Johannesburg on Wednesday. One of the organisers, the African Development Bank says the conference is over-subscribed with business people from all over the world showing interest to invest in Africa.
AfDB president Akinwumi Adesina says the Forum is a unique transaction-oriented platform where investment deals will be brokered along with discussions to making investing in Africa easier.
The African continent’s untapped markets and a growing middle class make it an attractive investment destination.
The continent is also home to six of the world’s ten fastest growing economies in 2018.
The World Bank expects Sub-Saharan Africa to grow at 3.1% in 2018 from 2.6% in 2017.
Growth in the region is weighed down by continued slow growth in the two largest economies – Nigeria and South Africa.
African economies are primarily exporters of raw materials and importers of processed goods. But there is realisation that economies need to diversify to be able to increase trade amongst each other and to build buffers against cyclical changes.
The infrastructure deficit and perceptions of risk are other hurdles that have constrained trade.
The financial responsibility will be taken by the investors in a very organised, smooth and well manner.
Small and medium enterprises will also get a special focus.
United Nations Conference on Trade and Development (UNCTAD) report says foreign direct investment to Africa fell by 21% in 2017.
But it forecasts growth in Foreign Direct Investments to Africa will increase by about 20% in 2018 to about $50 billion.
The projection is underpinned by the expectations of a continued modest recovery in commodity prices and strengthened inter-regional economic cooperation.
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