October 21, 2021
Introduction
In cooperation with the Swiss African Business Circle (SABC), this interactive session focused on the shared experiences of various representatives of private sector entities investing and operating businesses in Africa, highlighting the opportunities and challenges they face, particularly from the COVID-19 pandemic and its recovery. They demonstrated how their business activities can contribute to Sustainable Development Goals (SDGs). The session provided the opportunity for businesses to explore new investment prospects and interact with country representatives through Q&As. The issues addressed in the session were what investment policy reforms should be prioritised by host governments and which of the reforms have helped improve businesses as well as how COVID-19 has affected these priorities.
Session Highlights
Governments have an important role to play in investment policy reforms and the private sector is key in deriving opportunities to deal with the challenges and mobilise investment for sustainable development. The COVID-19 pandemic impacted foreign investment flows, particularly the domestic, public and private investments in Africa. The pandemic had a negative impact on the Sustainable Development Goals (SDGs) as several sectors experienced a decline in investment. These are the agriculture, health and infrastructure sectors.
Panellists noted the opportunities and challenges emerging from having a company and investing in African countries. There are opportunities from young African creative looking to further their careers having deep understanding of business, internet access and distribution of communication content on commerce and the African Continental Free Trade Area which has been revolutionary for Africa. The development of the global digital payment infrastructure in recent years, has spearheaded regional companies in Africa, thus enabling online commerce and the development of businesses. Increasingly, as a result of access to the internet, there’s been the development of technology companies with access to international investment coming into the digital ecosystem.
The Panellists noted the challenges investors face in realistically assessing the opportunities and risks in investing in Africa. Noting that Africa is a diverse continent and therefore they have to take into account all the 54 different contexts in order to have a realistic assessment of the business climate. The challenge for international investors is the devaluation of local currency, which creates uncertainty for the future and the underinvestment in sectors particularly the health, education and agricultural sectors, further widens the already existing investment gaps. The Panellists noted that the mainstream finance and investment companies, with a few exceptions, are missing out on the last mile entrepreneurial opportunity in Africa because of their uncertainty.
The Panellists discussed the need to strengthen and fully embrace the recovery and promote FDI that will foster sustainable and inclusive development. Countries need to improve their investment environment. Panellists underlined the need to improve the investment requirements and ensure sustainability. In addition, embracing the potential for rapid advancement through digitalisation, helps unlock global opportunities for African countries.
The Panellists highlighted that strengthening the private sector can lead to sustainable development in Africa, noting the need for a level playing field for all enterprises and private sectors, underscoring the need for capacity building, digital transformation and facilitation, internet access, access to data and credit, as well as the importance of Public – Private Partnerships, as well as the importance of technical and vocational training through the certification process for youths in Africa.
Opening
- Chantal Dupasquier, Chief, Investment Policy Review Section, Investment Policies Branch, Division on Investment and Enterprise, UNCTAD
On the panel were:
- Leonard Stiegeler, Founder, Pulse Africa Holding AG and Member, Swiss African Business Circle Board
- Laurent Padoux, Member of the Steering Committee and Southern Africa Expert, French Council of Investors in Africa (Conseil français des investisseurs en Afrique)
- Eliud Njoroge, Portfolio Manager, SilkInvest
- Paul Clements, Hunt, CEO, Blended Capital
Moderator
- Ammar Kessab, Principal Regional Governance Coordinator, African Development Bank