Technology has the potential to drive job creation and economic growth across the African continent. To harness this potential, opportunities for meaningful economic engagement must be created for Africa’s growing population. At the recently concluded UK-Africa Business Outlook, experts emphasised that the focus of financing and unlocking Africa’s entrepreneurial strength should be on job creation. The event, organised by Addleshaw Goddard and EventHive, brought together technology, investment, and finance experts to discuss the future of Africa’s economy.
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Harnessing Africa’s youthful energy: The Need for Job-Centric Investment
There is broad consensus that Africa has significant potential and could become one of the world’s leading economies in the future. Marc Fayemi, Principal of Capital Markets Development at EBRD, echoed this sentiment, asserting that innovative financing models are crucial to unlocking job markets and driving development on the continent. Panelists stressed that investment should focus on leveraging Africa’s core strengths, including its youthful population, natural resources, and the need for infrastructure development.
Veronica Bolton Smith, CEO of Connect Africa Network, highlighted that the continent’s young population needs jobs, and investors must prioritise this need. Jobs will emerge from investments in key business sectors. Cobus Visagie, Group CEO of Africa Merchant Capital, pointed to collateral warehouse financing as a promising investment area to unlock future job opportunities. This approach could lead to wealth creation across both upstream and downstream sectors, further enhancing job creation in Africa.
Overcoming barriers to investment
Sameh Shenouda, Chief Investment Officer at the Africa Finance Corporation, acknowledged that while investors are eager to invest in Africa, several challenges undermine investor confidence and hinder successful foreign investments. Saeed Soheily, CFO at Verto, identified liquidity issues, weak banking infrastructure, and payment challenges as key obstacles for investors.
Thomas De Beule, Commercial Director-Head of Bilateral Section Nigeria at CBL-ACP, pointed to the negative perception of the African market as a significant barrier to investment. Other challenges include policy issues, lack of government support, and limited access to energy. Africa’s diversity also presents unique challenges that can be difficult for investors with insufficient local knowledge to navigate.
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Showcasing Africa’s economic achievements to boost investor confidence
Despite these challenges, there are notable success stories in technology, infrastructure, and economic development that highlight Africa’s investment potential. Husam El-Qasem, President of EQ Developments, and Shenouda agreed that Africa has not done enough to promote these successes. Investors, governments, and other organizations must actively share successful African stories in the media.
For example, investment exits, such as Paystack’s success, should be highlighted to improve Africa’s image and enhance investor confidence. By showcasing these achievements, the narrative surrounding Africa’s economy can be reshaped, leading to greater confidence and a more positive outlook for the continent’s future.