Industry experts explore key investment trends in Africa

At the Global Industry Forum Africa 2021 (GBF Africa) in Dubai, African and UAE industry experts offered their perspectives and thoughts on key investment trends to Africa, as well as new methods that markets across the continent that may attract foreign investment.

The two-day forum, organised by Dubai Chamber and themed Transformation Through Trade, began on October 13th at Expo 2020 Dubai. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, is the patron of the high-level forum.

Hisham Abdulla Al Shirawi, CEO of Oasis Enterprises; Patricia Obo-Nai, CEO of Vodafone Ghana; and Risana Zitha, Chairman of the Board of Directors and Head of Investment Banking in Africa at Renaissance Capital – South Africa, spoke during a session titled Africa: The Final Investing Frontier.

According to Risana Zitha, the two major sectors where investments will be directed in the post-COVID-19 period are healthcare and economic digitalisation.

 “We have realised that there are certain sectors that have to be developed to help us get through this. A lot of countries demonstrated resilience in the face of the pandemic because of our young populations, but the funding needs of African countries have grown and we are witnessing many countries raise capital to meet their objectives,” said Zitha.

“There has been an incredible amount of investment into tech-led initiatives. Over USD2 billion has gone into over 500 African fintech companies just this year and seven companies have become unicorns. We have also started seeing venture capital funds focusing on diversified teams and women-led teams. This is all very encouraging, because it shows that investments will go where investors believe there will be a return, where they address a real problem,” added Zitha.

For his part, H.E. Hisham Al Shirawi emphasised that Africa remains a very high-growth-potential market and should be better promoted as such among other regions around the world to “attract investments and create a win-win situation. For its part, Africa must get the basics – including regulation and infrastructure – in place to spur growth in key sectors,” he urged.

“To attract further investment, governments and businesses on the African continent will have to cultivate deep relationships with other regions, not just for investment but also as markets for their products, suppliers of critical raw materials and knowledge partners in implementing industry best practice,” said Al Shirawi.          

Fintech, telemedicine, digital platforms for farmers, logistics, e-commerce, and retail are among the key sectors recognised by Al Shirawi as having enormous potential. He explained that GCC companies are making progress in Africa on transportation and energy infrastructure, while UAE companies are expanding their telecommunications infrastructure across the continent, and that such developments are critical for e-commerce, fintech, and education, among other sectors, to thrive.

Joining the session remotely, Patricia Obo-Nai asserted that “businesses that incorporate technology into their processes will see the most investments coming through.”

Around 3.7 billion people around the world don’t have access to the internet simply because they don’t have the devices in their hands, according to Patricia, who highlighted the huge opportunity for Africa to bridge this gap by entering the market, assembling smartphones, and putting devices in people’s hands.

According to Vodafone Ghana’s CEO, the majority of African women labour in the informal sector and have shown remarkable potential once trained to utilise smart devices. She asked investors to focus on the woman’s potential rather than the size of her company.

On the eve of Expo 2020 Dubai, GBF Africa 2021 will take place at the Dubai Exhibition Centre. The high-level meeting brings together UAE and African government and business leaders to discuss bilateral trade and investment prospects. The event is Dubai Chamber’s first big business forum, held in collaboration with Expo 2020 Dubai.