Conference Presentation, Panel, Fireside Chat
Why Africa, Why Now: Investing in the World's Next Growth Engine | Global Conference 2026
Milken InstituteBritish Robinson, Runa Alam, Qahir Dhanani, Courtney Powell, Ethiopis Tafara, Meg Whitman, Samaila Zubairu
- Africa's population is projected to reach 2.5 billion by 2050, with one in four global residents and one in three working-age people expected to reside on the continent, while urban populations are forecast to grow from 120 million to 1 billion by 2030.
- Smartphone penetration is anticipated to reach 80 to 90 percent by 2030, and Africa's economy is currently growing at rates exceeding those of the US and Europe, with a widening GDP growth gap compared to Asia expected to persist through 2030.
- Investment opportunities are shifting from traditional capital-heavy infrastructure toward adjacent sectors such as consumer and health subscale acquisitions, with specific focus on energy transition, climate, ag tech, and fintech.
- The Africa Finance Corporation plans to invest $2 billion annually, scaling to $4 billion in specific years, while mobilizing four to six times every invested dollar, supported by a new $100 million technology fund and a potential $20 billion equity investment pool.
- The IFC intends to organize a conference at the end of June to encourage institutional investors to allocate 20 to 30 percent of their funds to Africa, while developing an "Originate to Distribute" program to mobilize private capital for infrastructure.
- Measured risk data indicates Sub-Saharan Africa has global recovery rates of 78 percent and lowest loss given default, contrasting with a 3.5 percent average default rate for emerging markets, though a public debt crisis may expand if the state of Hormuz remains closed.
- Domestic capital pools in Africa have increased from $4 trillion to $4.4 trillion, with a goal to deploy $2 trillion currently held in sovereign wealth and pension funds, while the IFC maps 2,500 potential local champions down to 500 meeting investment criteria.
- Strategic infrastructure plans include building new cities to drive demand for steel, aluminum, and copper, creating a digital free zone in Lagos, and establishing reliable supply chains, alongside an initiative to reduce the number of people without electricity from 600 million to 300 million by 2050.
- The tourism industry, which currently accounts for 8 to 12 percent of GDP in some nations, is projected to double in size and create more jobs than any other sector, with Kenya positioned as the top venture capital destination ahead of Egypt, South Africa, and Nigeria.
- Key risks include succession pressures and capital constraints for family-owned middle-market businesses, a 27 percent loan loss ratio cited by the IFC, and the continued prevalence of imported food which constitutes 85 percent of consumption despite 65 percent of the world's uncultivated arable land being located in Africa.
- Private equity performance has deepened with 15 funds delivering returns greater than 15 percent and 14 funds exceeding 10 percent, while African stock markets recently rose by 50 to 64 percent and currencies appreciated by 10 to 14 percent against the dollar.
- Investment flows are increasingly diversifying, with growing interest from the Middle East, Japan, and Korea, and a strategic shift by the World Bank to prioritize smaller transactions with high private capital participation over large volume deals.
- Specific national projections indicate Kenya's population will reach 100 million by 2050 with one million new 18-year-olds entering the workforce annually, and 13 of the world's 30 largest cities are expected to be located in Africa by 2050.
- Global investors are advised that waiting until 2045 is insufficient for participation, as immediate narrative building and capital allocation are required to capture the benefits of Africa's demographic and economic expansion.