2024 Africa Investment Forum: $29.5bn in New Commitments for African Projects

The 2024 Africa Investment Forum (AIF), held in Rabat, Morocco from 4th to 6th December, marked a major step forward for investment in Africa. The forum resulted in $29.5bn in new investment commitments for projects across the continent. During the event, $40.9bn worth of deals were presented to investors in 41 different boardrooms. A record 1,707 investors from 200 institutions in 83 countries attended, showing just how much global interest there is in Africa’s potential.

Key Highlights and Agreements
Out of the deals presented, 34 were ready for investment, while 7 were still in the early stages. One of the most notable agreements was the $42m first round of funding for Seedstars Africa Ventures I, a venture capital fund focused on supporting early-stage African start-ups. This fund has backing from the African Development Bank (AfDB), EIB Global, and other investors.

The African Development Bank and Bank of Africa SA also signed a €50m risk-sharing agreement, aiming to boost private-sector financing and trade across more than 20 African countries. This agreement is expected to generate €200m in additional trade and support small and medium-sized businesses (SMEs), which are vital for job creation and economic growth in Africa.

In another significant development, the African Development Bank, the Development Bank of Southern Africa (DBSA), and institutional investors launched a new initiative to help mobilise private capital. This project will support climate finance, infrastructure, and financial services, building on the success of the AfDB’s $1bn Room to Run Programme.

Strategic Partnerships and Regional Focus
A key agreement was signed between SACE, an Italian financial group, and the African Development Bank to provide credit protection and support investments in sectors such as infrastructure, agriculture, healthcare, energy, and education. This is part of the $6bn Mattei Plan, which was launched by the Italian government earlier this year. The plan aims to strengthen economic ties between Italy and Africa, with a focus on countries like Algeria, Egypt, Ethiopia, and Morocco.

Africa’s Growth Potential: A Message from AfDB President Akinwumi Adesina
In his opening speech, Akinwumi Adesina, president of the African Development Bank Group, called on investors to “believe the data” and not be influenced by misconceptions about Africa. He highlighted the continent’s tremendous growth potential, with Africa expected to account for a quarter of the world’s population by 2050. This will create huge opportunities in housing, agriculture, infrastructure, and many other sectors.

Adesina also pointed out that the demand for housing in Africa is set to rise significantly, offering an investment opportunity of up to $1.4 trillion. The African food and agriculture market is expected to reach $1 trillion by 2030, while the demand for infrastructure presents an annual investment opportunity of at least $170bn, covering areas like energy, transport, and water.

Furthermore, Africa is in a strong position to play a leading role in the global green energy transition, with the potential to capitalise on the growing electric vehicle market, which is projected to grow from $7 trillion in 2030 to $59 trillion by 2050.

Growing Global Interest in Africa
This year’s AIF attracted not only traditional players from Europe and the US but also delegations from emerging economies such as India, China, and Japan. This increasing global interest reflects Africa’s growing importance as an investment destination. A 2024 survey by the Africa Private Equity Capital Association showed that 85% of investors plan to increase their investments in Africa within the next two years, and 52% believe that Africa’s private capital market will be more attractive than other emerging markets in the next five years.

The Role of ADD™ in Africa’s Investment Future
At ADD™, we recognise the immense opportunities highlighted by the AIF. Our platform supports investment in Africa’s most important sectors, including infrastructure, energy, and technology, by providing in-depth due diligence, compliance, and strategic advice. We help our clients make informed decisions and navigate the complexities of investing in Africa.

The AIF’s success is proof of the rising momentum for investment in Africa. ADD™ is proud to be part of this exciting journey and remains committed to supporting sustainable development, unlocking funding for impactful projects, and building a prosperous future for Africa.

Conclusion
The 2024 Africa Investment Forum has shown that Africa is a continent full of opportunity. With key partnerships, innovative financing solutions, and a focus on high-growth sectors, the forum demonstrated Africa’s potential to be a leading investment hub. At ADD™, we are excited to continue contributing to Africa’s transformation and helping our clients seize the opportunities that lie ahead.