Money Matters in Marrakech 

By Olusegun Adeniyi

Yesterday’s absence of senior officials of President Bola Tinubu’s government at the opening sessions of the Africa Investment Forum (AIF) in Marrakech, Morocco, does not speak well for an administration seeking investment opportunities. While I don’t believe in the kind of foreign jamborees many of our public officials indulge in on the pretext of investment drives, an African Development Bank (ADB) engagement is far more important than the United Nations General Assembly where Nigeria featured one of the largest contingents in September. 

As Nelson Okwonna, the management consultant to the Kaduna Green Economic Zone project, reminded me yesterday here in Marrakech, this is the first time Nigeria would have its citizens at the helm of three critical financial institutions on the continent and such opportunity may not come again for a long time. With Dr Akinwumi Adesina at ADB, Samaila Zubair at African Finance Corporation (AFC) and Benedict Oramah at Afreximbank, other countries in similar position as ours would leverage on such good fortune. While ‘Market Days 2023’ (with the theme, ‘Unlocking Africa’s value chains’) has attracted an assemblage of high-net-worth investors and seasoned professionals across different fields, most Nigerians I have encountered, including President Olusegun Obasanjo and former Kaduna Governor, Nasir el-Rufai are here in their private capacities. 

 It is even more remarkable that in declaring the Forum open yesterday, the King of Morocco, Mohammed VI, not only harped on the need for an integrated, prosperous Africa that would pave the way for the creation of regional value chains, but also referenced the economic collaboration between his country and ours. “The Morocco-Nigeria Gas Pipeline project is part of that endeavour. It reflects my resolve to lay the groundwork for genuine regional cooperation,” the monarch said. “The project will enable all countries along the pipeline route to have access to reliable energy supplies and to be more resilient to exogenous energy price shocks.”

Founded in 2018, the AIF was designed as a vehicle for channelling capital towards critical sectors on the continent. Incidentally, Adesina, a Nigerian and former Agriculture Minister, and current ADB President, envisioned the idea. In a brief chat with AIF Senior Director, Ms Chinelo Anohu who runs the programme, the whole idea was conceived to reject the beggarly disposition that has for decades held Africa back by leveraging on the human and material resources to seek win-win partnerships and investments from within and outside the continent. This, as she argued, would require a collaboration with all critical stakeholders, including governments, the private sector, and NGOs.

Within the past five years of operation, the AIF has reportedly mobilised $143 billion in investment interest. Anohu, former PENCOM Director General under whose stewardship Nigeria recorded a geometric rise in pension assets, (from N2.4 trillion in 2014 when she took over to N6.5 trillion by the time of her exit from the commission in 2017), said the AIF is different from many of such forums where people gather just to talk, “it is a platform for mega deals for the advancement of Africa.” That the Forum commenced on the day the United Nations Conference on Trade and Development (UNCTAD) released the ‘Least Developed Countries Report 2023’ which listed no fewer than 33 of the continent’s 54 nations among the world’s Least Developed Countries (LDCs) makes it even more important. But the ADB President and AIF visioner, Adesina, was upbeat in his opening remark at the plenary yesterday morning. 

In a speech he delivered both in English and French, Adesina said African economies witnessed a real GDP growth of 3.8% in 2022, which was higher than the world average of 3.5%. “African economies provide some of the best investment opportunities in the world. Do not believe me for my optimism, believe the data,” Adesina told the audience of over a thousand, adding that the size of the food and agriculture market in Africa will be worth $1 trillion by 2030. “The African Continental Free Trade Area presents a consolidated market size of $3.4 trillion. The future of electric vehicles in the world depends on Africa’” he said. “The size of the electric vehicles value chain is estimated to increase from the current $7 trillion to $57 trillion by 2050. That future depends on Africa. That is because Africa accounts for the largest source of the green metals for the development of electric vehicles, including platinum (70%), cobalt (52%), manganese (46%), bauxite (25%), and graphite (21%).” 

Quoting a recent Bloomberg report, Adesina says that the cost of manufacturing of lithium-ion precursor batteries in Africa is three times less than in the United States, China, and Poland. Africa, he added, has the largest sources of renewable energy in the world, including hydro and solar. “So, whether it is in oil and gas, minerals and metals, renewable energy, agriculture, or the labour force that will drive the global growth, Africa is where to be. Investors should see Africa not from what they hear, but from what the facts say.” Moody’s Analytics, according to Adesina, “did an analysis of default rates on infrastructure financing globally over the past 14 years. Guess what they found: Africa’s default rate is the lowest in the world: 2.1% compared to Eastern Europe: well over 10%; and Asia: well over 8%.” 

Echoing the same optimism expressed at the 7th Korea-Africa Economic Cooperation Ministerial Conference attended by CEOs of Korean corporations, heads of financial institutions as well as ministers and business leaders from Africa in September, Adesina described the continent as one that cannot be ignored by investors. “Africa is not as risky as you hear. It is a continent of opportunities, waiting to be tapped,” he concluded.

Adesina’s speech was followed by a presidential panel discussion with President Samia Suluhu Hassan of Tanzania, President Faure Gnassingbé of Togo, President Azali Assoumani of the Union of Comoros & Chairperson of the African Union (AU), President Julius Maada Bio of Sierra Leone, Prime Minister Mia Mottley of Barbados, and Prime Minister Edouard Ngirente of Rwanda. Many of the African countries were represented at the Forum by the Finance Ministers but the real movers and shakers are from the private sector. Nigerians who will speak at some of the sessions include Faruk Saleh, the CEO, Metro Capital Advisory Group, Tunde Folawiyo, CEO of Folawiyo Group, Olufemi Adeagbo, CEO of Comnavig, Obi Asika, Chairman of Dragon Africa, Dotun Popoola, an artist whose work would be on display and Dr Philip Mshelbila, the CEO of Nigeria LNG Limited.

The Forum ends tomorrow.