Fireside Chat, Panel
African Century: Engaging the Continent's Great Opportunities
Milken InstituteStaci Warden, Clare Akamanzi, Joaquim Alberto Chissano, His Excellency Salaheddine Mezouar, Josh Sandler, Salaheddine Mezouar, Veronica Nyamwaya, Miguel, Mark Desario, E, Iyad Malask
- The African continent has adopted a 50-year strategy shifting from political unity to economic integration, with regional bodies like SADC, ECOWAS, and the East African Community described as nearly achieving integration success.
- Over 15 countries are expected to implement visa-on-arrival protocols for African nationals, and a single continental aviation space will be established through a unified air transport agreement, pending the ratification of these texts.
- A continental free trade area is anticipated to remove tariff and non-tariff barriers, enabling unrestricted trade and a transition toward exporting value-added products rather than commodities.
- Africa requires an annual investment of $150 billion in basic infrastructure, primarily energy and transportation, with the "Africa 50" entity expected to bridge a $40 billion annual gap.
- The East African Community, comprising Kenya, Rwanda, Uganda, Tanzania, and Burundi, is projected to raise substantial bond amounts by integrating debt markets across the region's $150 billion GDP.
- Citi is scheduled to bring four Pan-African IPOs to market in 2018, each valued at over $500 million, while the Johannesburg exchange remains the primary platform for non-African investors alongside growing interest from London and Amsterdam.
- Private sector opportunities are expected to expand in logistics, with Lori Systems aiming to decrease port loading times by 65% and border crossing times by 25% while extending operations from East Africa to the SADC region and North Africa.
- Major institutional investors including Carlisle, KKR, and TPG are anticipated to continue making billion-dollar-plus investments in African logistics and infrastructure.
- Zipline is expected to scale its drone operations from Rwanda to Tanzania and other locations following the successful validation of its concept.
- Investments in renewable energy and infrastructure are expected to be supported by guarantees to mitigate country risk, with efficiency anticipated to evolve through practical project experience.
- Capital repatriation remains challenging in certain jurisdictions due to significant restrictions, despite foreign exchange risks being managed in other contexts.
- Mozambique is positioned to serve as a sea-based hub for interland countries through partnerships with SADC and ECOWAS, and a private sector organization is expected to be formed where businesses organize government meetings.
- Investors are expected to focus on building local human capacity, with Endela projected to train thousands of engineers to global standards to address talent gaps.
- The demographic dividend is highlighted as a significant opportunity, noting a median age of 20 in Africa compared to 30 in major developed economies.
- New leadership is expected to foster increased interaction between governments and the private sector to solve regional problems, while investors are anticipated to structure creative deals to address specific local needs like skills gaps.