Africa countries have been advised to focus on some critical areas in order to boost investment on the continent.
According to panelists at the Economic Community of West African States (ECOWAS) Investment Forum (EIF) 2024, which held in Togo last week, Africa needs to do more on infrastructure development, energy improvement, agriculture, youth empowerment, regional integration as well as striving to tap into the Investment Facilitation Agreement for Development.
The EIF 2024, organised by the ECOWAS Bank for Investment and Development (EBID) in partnership with the Togolese government, had a theme: “Transforming ECOWAS Communities in a Challenging Environment.”
Its primary focus was to stimulate economic growth, create sustainable jobs, and build resilience in the face of global challenges by raising awareness of ECOWAS region’s strong investment potential; facilitate partnerships among key stakeholders; and provide a platform to discuss crucial issues such as food security, infrastructure development, and climate change mitigation.
The Director General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, said although investment has increased in Africa, the continent can achieve more by “demographics, driven by youth as the workforce and the market of the future; regional integration through the African Continental Free Trade Area and growing importance of commercial services, especially digital services.”
The WTO DG said Africa would continue to develop even in the face of challenges by decentralising and diversifying supply chains, a process she said the global trade organisation refers to as “reglobalisation.”
This, she said, will bring “more regions out of marginality into the global arena, while stimulating job creation.”
Okonjo-Iweala noted that despite the fact that ECOWAS countries account for 0.7 per cent of global trade, focusing on exportation of raw materials, while Africa accounts for three per cent, governments on African continent should aim at achieving globalisation.
For globalisation to work, she tasked governments in Africa to reduce commercial costs within ECOWAS; improve physical and digital infrastructure, continue the improvement of customs duty codes to facilitate the movement of goods at borders, continue the modernisation of processes with electronic tools and the digitisation of other procedures.
The WTO DG said that the Investment Facilitation Agreement for Development, which was finalised by 166 members at the recent 13th ministerial conference in Abu Dhabi, United Arab Emirates (UAE), could give ECOWAS access to long-term financing if the region could streamline “approval processes and avoiding bureaucratic obstacles,” while urging the two countries in West Africa yet to sign the agreement to do so.
Also speaking at the EIF 3024, Mrs. Kanayo Awani, EVP AFREXIM, said that despite the fact that there is infrastructure deficit, pooling resources for sustainable infrastructure development would go a long way to bring about trade improvement.
She suggested that ECOWAS and Africa as a whole should focus on the following: “Innovative financing mechanisms; and strong regulatory frameworks that encourage collaboration.”
She said AFREXIM Bank had implemented projects aimed at developing infrastructure in Africa, including: “300-megawatt combined-cycle gas power plant in Senegal, floating dry dock in the port of Takoradi, Ghana, road linking Côte d’Ivoire, Mali, and Senegal and complete LNG train in Nigeria.”
She said that Africa plays a critical role in global trade and maritime security due to its abundant resources and strategic position, emphasising: “Our young population offers significant potential for labour and the development of innovative projects.”
Yao Kouassi, Managing Director at Vista Bank, on his part, said that West Africa is the most promising and attractive markets for investors “due to numerous untapped sectors with vast potential for innovation, such as renewable energy.”
According to him, “with Africa currently representing 16 per cent of the global population and projected to reach 25 per cent by 2050, there lies a significant opportunity to tap into a skilled workforce and create new avenues for growth.”
Speaking on how to ensure food sufficiency in West Africa, Mr. Vikramaditya Ugra said there was a need to attract investors to boost the agricultural chain and create jobs in Africa.
He suggested that the Indian model should be considered towards this end by “adopting new agricultural practices, implementing smart agriculture, and enhancing training for those involved in the chain.”
Dr. Mabouba Diagne, AFREXIM Vice President in charge of Finance and Institutional Services, stated that there was the need to focus on the production and processing of agricultural products.
“This should take precedence over discussions about opportunities that ultimately prove incomplete. With the assistance of our banks and the ECOWAS Bank for Investment and Development (EBID), we can establish a circular economy and successfully tackle challenges,” he said.
Dr. Ing Oyétoundé Djiwa said West Africa needs to make agriculture more attractive in order to encourage young people to enter the sector, attract investors, and promote innovation.
He said that with climate change affecting food security, “resilient agriculture and the implementation of environmentally friendly agriculture practices are necessary.”
For Geoffrey Nsofon, Head of Private Sector Engagement at TAAT Clearinghouse, there is a need for farmers to work with the best technologies and necessary investment.
“While we have this potential, Africa exports $50 billion worth of food annually. We need to establish mechanisms for these funds to be used within our countries,” he said.
He suggested the prioritisation of technology in public projects and programmrs and government investments as well as encouragement of the private sector to invest in agriculture.
On the need to pool resources towards the development of sustainable infrastructure, Helen Aigbe Brume, Director of Project and Asset Financing, AFREXIM Bank, emphasised the importance of fostering partnerships between the public and private sectors.
She highlighted the importance of pooling resources to support those in need of investment while urging African countries to seek local investors to avoid repayments in local currency for dollar-denominated amounts.
Christopher Balliet Bleziri, Resident Representative at the International Finance Corporation in Togo, said there was a need to “demystify the concept of infrastructure and focus more on government development and job creation.”
Dr. Kandeh Yumkella, Chairman of the Presidential Initiative on Climate Change, Renewable Energy, and Food Security for the Government of Sierra Leone, advised African countries to educate youth on climate change and potential solutions.
“This requires leadership and action from our governments. To be competitive in green economies, African governments must assess the continent’s green assets. Collaboration with banks is necessary to establish sustainable support mechanisms for renewable energy actors. Industrialisation within our countries is not an option, as evidenced by its impact on China,” he said.
He said that renewable energies serve as a catalyst for youth and employability.
Dwelling on renewable energy, Ing Francis Semprose, Executive Director of ECREEE, said that there were 12 million jobs related to renewable energy.
“To seize this opportunity, ECOWAS has introduced certifications in various fields for youth. These certifications, adaptable to the population regardless of education level, focus on the renewable energy sector. The goal is to train a skilled workforce for each level of project intervention within the ECOWAS region,” he said.