General Authority for Investment and Free Zones (GAFI)’s Post

Where are the opportunities to invest in frontier markets and how can these opportunities become a reality?    A new publication from the Africa Resilience Investment Accelerator (ARIA) shares insights from our experience of supporting investment in five frontier markets in sub-Saharan Africa - Benin, the Democratic Republic of the Congo (DRC), Ethiopia, Liberia and Sierra Leone.      The publication is based on an analysis of 400 companies operating in these markets. It defines the categories of investment opportunities, what these businesses are looking for from a financing perspective and how investors can align their approaches with their needs.    You can read the publication here: https://lnkd.in/etSkwYCA #frontiermarkets #impactinvesting British International Investment FMO - Dutch entrepreneurial development bank

New publication released from the Africa Resilience Investment Accelerator (ARIA)! Based on an analysis of 400 companies operating in five frontier markets in sub-Saharan Africa - Benin, the Democratic Republic of the Congo (DRC), Ethiopia, Liberia and Sierra Leone, the report defines the categories of investment opportunities, what these businesses are looking for from a financing perspective and how investors can align their approaches with their needs. Of the 400 companies, 128 have been identified by ARIA as potential opportunities – these largely fall into four sectors: agribusiness (27%), financial institutions (21%), manufacturing (19%) and energy (17%). These companies are looking for US$2 billion in combined investment, with just over half (53%) needing between US$5-$20 million. While these businesses present significant potential, 43% require technical assistance to become ready for investment from development finance institutions (DFIs).  Follow the link to read the full report 👇

Find out the opportunities to invest in 9 sectors in frontier markets! Everything looks different from afar but when you look closer things can prove brighter.

It’s great to see the second publication in the Foundations of Growth series from the Africa Resilience Investment Accelerator (ARIA). This report highlights the opportunities for investment in frontier markets in Africa. It's based on an analysis of 400 businesses operating in the five countries where ARIA operates – Benin, the Democratic Republic of the Congo (DRC), Ethiopia, Liberia and Sierra Leone. It categorises the companies operating in these markets, highlights their impact potential and discusses how they can be best supported. You can read the report here: https://lnkd.in/etSkwYCA or find out more below ⬇

For a couple of years, the team at Uganda Investment Authority has been hatching a plan to accelerate domestic investment in the country which has been a concern to the Private sector and government planning bodies. #UgandaInvestmentAuthority #DomesticInvestmentDivision

AfCFTA is also providing numerous new opportunities for PE investors. The free trade agreement has seen the consolidation of a USD 1.3 billion market with a combined GDP of USD 3.4 trillion. The start of trading in 2021 resulted in an increase in investor sentiment as investors took note of the agreement’s first movers. AfCFTA is unlocking significant growth opportunities for the continent, providing the chance for countries to diversify their economies, scale production capacity, and widen the range of products made in Africa, in particular boosting the production of manufactured goods. AfCFTA is also acting as an impetus for African governments to address their infrastructure needs and overhaul regulations relating to tariffs, bilateral trade, cross-border initiatives, and capital flows. The World Bank has noted that AfCFTA is expected to increase Africa’s income by USD 450 billion by 2035, as well as boosting intra-African trade by more than 81 per cent. So far, beneficiaries of trade under AfCFTA have included a Kenyan car battery company and a women-owned Rwandan coffee company – both have taken advantage of the lower tariffs to export their products to Ghana. This is all good news for PE investors seeking new opportunities. The energy sector in Africa has also been attracting PE investor interest. Access to power on the continent is hampered by the lack of access to competitive funding, the dire state of Africa’s utility infrastructure, and the need for energy policy and legislation to be adapted to boost investment. However, new systems and networks are being designed around future environmental stressors and energy demands without having to consider the limitations of old infrastructure. With the use of mobile technology and the lack of existing electricity transmission networks, these developments are providing an opportunity for African communities to gain access to power by leapfrogging the traditional model of centralized generation and transmission of power. New and cost-effective solutions that utilize renewable energy, green hydrogen, battery storage and smart power technologies, as well as the global drive towards a decentralized, decarbonized, and secure energy supply that addresses climate change and stimulates economic growth, are all leading to innovative PE investment opportunities.

A Critical Appraisal of the Pan-African Investment Code's Influence on the AFCFTA Investment Protocol by Victor Oluwatomiwa Adenekan  https://lnkd.in/ghykgx7X The African Union Commission (AUC) formulated the Pan African Investment Code (PAIC) to serve as a guide and roadmap towards the unification of the investment regulatory regimes in Africa. In the formative stage of the investment protocol to the African Continental Free Trade Agreement (AfCFTA), there were indications from some quarters that suggested the possibility of modelling the #AfCFTA investment protocol on the #PAIC. However, on 19 February 2023, the AfCFTA investment protocol was adopted by the African Union of Heads of States with no explicit statements as to the guiding framework of the protocol. The purpose of this analysis is to critically examine the influence of the PAIC on the formulation of the AfCFTA by scrutinising the interplay between the texts. Although a non-operative document, the PAIC was designed with the objective of fostering cross-border investments within Africa, standing as a pivotal model instrument to enable regional economic development in Africa. Understanding the degree of influence that the PAIC has on the AfCFTA is critical in this analysis. The reason is that this critical integration provides a useful framework for assessing the efficacy of regional economic integration in Africa. Also, evaluating the interplay between both documents provides insights into how the harmonisation of the fragmented investment landscape in Africa can be actualised. Furthermore, insights from this analysis are beneficial to stakeholders, policymakers, and scholars, informing their strategic decisions and policy adjustments to enhance the success and effectiveness of the PAIC and the AfCFTA investment protocol towards economic cooperation and development. 

How to tap into the investment opportunities available in Nigeria’s $100bn sustainable investment window as well as the blue economy will be at the forefront of discussions at this year’s Nigeria Development and Finance Forum Conference.

The Special Investment Facilitation Council (SIFC): A New Chapter for Pakistani Investment? The Special Investment Facilitation Council (SIFC), launched by Pakistan in June 2023, aims to address the nation's economic challenges by attracting significant foreign investment. This explainer explain Pakistan's efforts to shift from a debt-driven to an investment-driven economy through the Economic Revival Plan, with the SIFC at its core. The council targets foreign and domestic investors, focusing on sectors such as energy, technology, and agriculture, and aims to foster economic growth, job creation, and technological advancement. Read full explainer at: https://lnkd.in/dxYXi4sz #Pakistan #SIFC #FDI #EconomicGrowth #CreativeEconomy #EconomicRevival #SaudiArabia #China #PakistanArmy #AsianPolitico