This piece is part of a joint series with the African Development Bank, commemorating its sixtieth anniversary.
We invite you to visit our dedicated portal to explore the Bank’s history and its initiatives throughout the continent.
The Africa Investment Forum, held in Rabat, Morocco from December 4th to 6th this year, highlighted the continent’s extensive investment potential. The event, themed “Leveraging Innovative Partnerships for Scale,” saw its highest attendance since its launch in 2018, with 1,707 investors from 200 institutions across 83 countries participating.
During the opening remarks, Dr. Akinwumi Adesina, the president and chairman of the board of directors of the African Development Bank Group, made a persuasive call for heightened investments in Africa. He encouraged investors to “trust the data” and not be swayed by negative stereotypes about the continent. He pointed out that Africa is expected to constitute a quarter of the global population by 2050, significantly increasing the demand for a range of goods and services.
Enthusiastic Forum Participation Highlights Africa’s Unique Investment Path
“The housing demand is projected to surge, presenting an investment potential of up to $1.4 trillion. By 2030, Africa’s food and agriculture market is anticipated to hit $1 trillion. Furthermore, the infrastructure needs present an annual investment opportunity of at least $170 billion across sectors such as energy, transportation, water and sanitation, among others,” he stated, emphasizing that “Africa offers a distinctive investment landscape that ought not to be disregarded.”
Dr. Adesina, who received the “African of the Decade Award” at the conclusion of the forum, remarked that the unprecedented level of attendance signifies the plentiful opportunities for value creation on the continent. This year’s forum attracted delegations from India, China, and Japan, underscoring its rising profile and growing interest in African investments. A 2024 survey conducted by the Africa Private Equity Capital Association indicated that 85% of limited partners plan to increase their allocations of private capital to Africa in the next two years, with 52% considering Africa to be more attractive than other emerging markets within five years. Given its substantial reserves of key minerals for the green transition, Africa is also poised to amplify its electric vehicle production value, projected to grow from $7 trillion in 2030 to $59 trillion by 2050.
Morocco’s Finance Minister Advocates for Structural Reforms
In her opening address, Morocco’s finance minister, Nadia Fettah Alaoui, applauded the founding partners of the Africa Investment Forum for their teamwork in enhancing investment across Africa. “Now more than ever, development partners need to strengthen strategic alliances and work more collaboratively to effectively tackle the escalating challenges faced by African nations,” she stated.
While recognizing the progress made in attracting private investment, Alaoui emphasized that more efforts are required to close the financing gap necessary for achieving the Sustainable Development Goals. She called upon development partners to amplify support for structural reforms being enacted by African governments, fostering private initiatives and well-conceived, financially sustainable projects. “These reforms should include strategies to reinforce macroeconomic fundamentals and enhance the business environment, ultimately transforming perceptions of risk and dismantling long-standing biases against Africa, allowing private stakeholders’ financial capabilities to be fully realized,” she stressed. Alaoui also urged global partners to work together on establishing a more effective international financial safety net for immediate and automatic liquidity access, helping to reduce investment risk premiums.
New Investments Totaling $29.5 Billion and Major Agreements Established
In past editions, the Africa Investment Forum has garnered $180 billion in investment interest and facilitated transactions totaling $30 billion, positioning itself as the leading event for channeling investments into the continent. After three days filled with focused discussions, this year’s market days at the AIF generated $29.5 billion in new investor commitments across various sectors, including transportation, energy, agribusiness, manufacturing, mining, pharmaceuticals, private equity, tourism, urban infrastructure, and water management. This was the result of presenting $40.9 billion in deals to investors in 41 dedicated boardrooms set up during the forum, featuring 34 investment-ready opportunities and 7 in early-stage development, demonstrating a diverse range of options for potential investors.
Several key agreements were concluded during the AIF. Seedstars Africa Ventures I, a venture capital fund focused on early-stage investments in scalable African startups, announced its first closing at $42 million, supported by the African Development Bank, EIB Global (part of the EU’s ACP Trust Fund and Boost Africa initiative), and other international investors. Additionally, the African Development Bank and Bank of Africa SA entered into a €50 million risk-sharing agreement aimed at enhancing private-sector financing and boosting African trade, with a goal of securing an additional €200 million in trade support for SMEs across more than 20 African nations.
Another agreement was established among the African Development Bank Group, the Development Bank of Southern Africa (DBSA), and institutional investors to assess a multi-originator synthetic securitization transaction intended to attract private capital and reduce the risks faced by African development finance institutions. This initiative builds upon the successful $1 billion Room to Run Programme and aims to establish a platform to enhance lending capabilities for significant projects focusing on climate finance, infrastructure, and financial intermediation.
$6 Billion Mattei Plan Aims to Establish an Energy Hub
At the AIF, a partnership was formalized between SACE, an Italian insurance-financial group, and the African Development Bank Group to deliver credit protection and stimulate investments in Africa under the “Mattei Plan.” This agreement is part of a broader initiative by the Italian Government in collaboration with the Bank, aimed at supporting impactful projects across sectors including infrastructure,
agribusiness, healthcare, energy, and education. The $6 billion Mattei Plan, introduced earlier by Italian Prime Minister Georgia Meloni, aims at strengthening economic ties and developing an energy hub, prioritizing countries such as Algeria, Egypt, Ethiopia, and Morocco. SACE’s financial products, including the Push Strategy, will enhance connections between African buyers and Italian SMEs, bolstering business relations between Italy and Africa.
The AIF is an initiative backed by 9 Development Finance Institutions, including the AfDB Group, Africa50, Afreximbank, IsDB, DBSA, EIB, TDB, BADEA, and AFC. This year, it proudly welcomed the Arab Bank for Economic Development in Africa as a new founding member, further broadening its impact and reach.
