This year’s Africa Investment Forum (AIF), scheduled for December 4th to 6th in Rabat, Morocco, has successfully secured $29.5 billion in new commitments from investors for various projects across the continent.
These commitments came after the presentation of deals worth $40.9 billion to investors across 41 specialized boardrooms during the event. Among these, 34 deals were ready for investment, while 7 were still in the preliminary stages of development.
The forum recorded its highest level of participation since its inception in 2018, bringing together 1,707 investors from 200 institutions across 83 countries.
Several significant agreements were finalized during the AIF. Seedstars Africa Ventures I, a venture capital fund dedicated to early-stage investments in African startups, announced a first close of $42 million, supported by the African Development Bank, EIB Global (part of the EU’s ACP Trust Fund and Boost Africa initiative), along with various global investors. Furthermore, the African Development Bank and Bank of Africa SA concluded a €50 million risk-sharing agreement intended to boost private-sector financing and enhance African trade, aiming to generate an additional €200 million in trade while supporting SMEs across more than 20 African nations.
In addition, another agreement was reached among the African Development Bank Group, the Development Bank of Southern Africa (DBSA), and institutional investors to explore a multi-originator synthetic securitization initiative. This initiative aims to mobilize private capital and reduce risks for African development finance institutions and builds on the success of the Bank’s $1 billion Room to Run Programme, creating a foundation to unlock lending capacity for impactful projects in climate finance, infrastructure, and financial intermediation.
Italy’s Mattei Plan Gains Momentum
The AIF saw the signing of an agreement between SACE, an Italian financial and insurance group, and the African Development Bank Group, aiming to provide credit protection and encourage investments in Africa as part of Italy’s Mattei Plan. This agreement forms part of a broader initiative by the Italian Government and the Bank, which targets substantial projects in sectors such as infrastructure, agribusiness, healthcare, energy, and education.
Launched earlier this year by Italian Prime Minister Georgia Meloni, the $6 billion Mattei Plan seeks to enhance economic ties and establish an energy hub, focusing on countries including Algeria, Egypt, Ethiopia, and Morocco. SACE’s financial instruments, such as the Push Strategy, are set to facilitate partnerships between African buyers and Italian SMEs, thereby bolstering business relationships between Italy and Africa.
Adesina Advocates for Trust in Data
In his opening remarks at the forum, Akinwumi Adesina, president and chairman of the board of directors of the African Development Bank Group, made a compelling case for increased investment in the continent. He urged investors to “believe the data” and dismiss commonly held misconceptions about Africa. He pointed out that by 2050, Africa is projected to represent a quarter of the global population, leading to a dramatic rise in demand for goods and services.
“The demand for housing alone is expected to create an investment opportunity of up to $1.4 trillion. By 2030, Africa’s food and agriculture market is anticipated to reach $1 trillion. In addition, the demand for infrastructure presents an annual investment opportunity of at least $170 billion across sectors like energy, transportation, water sanitation, and more,” he noted, underscoring that “Africa offers a unique investment opportunity that cannot be missed.”
This year’s forum attracted delegations from various countries, including India, China, and Japan, showcasing its significance and the increasing interest in African opportunities. A recent survey by the Africa Private Equity Capital Association revealed that 85% of limited partners plan to increase their private capital allocation to Africa within two years, with 52% believing that Africa’s private capital will become more attractive than that of other emerging markets in the coming five years, as Adesina indicated.
Moreover, with a significant share of essential minerals for the green transition, Africa holds a distinct opportunity to excel in the electric vehicle production market, which is projected to rise from $7 trillion in 2030 to $59 trillion by 2050, he added.
The AIF is a collaborative effort of nine development finance institutions, including the AfDB Group, Africa50, Afreximbank, IsDB, DBSA, EIB, TDB, BADEA, and AFC. This year, the Arab Bank for Economic Development in Africa joined as a new member.
