Morocco, November 11, 2023 – The Africa Investment Forum (AIF) 2023 has concluded with resounding success, recording an impressive $34.82 billion in investment interest, announced Akinwunmi Adesina, President of the Africa Development Bank, during a press briefing in Morocco on Friday. This achievement represents the highest level of investment interest since 2019 when the event secured a monumental $40.1 billion, demonstrating an 18 percent increase from the $31 billion recorded in 2022.
The forum, held over three days, brought together key players in the African economic landscape, fostering discussions and collaborations that have culminated in significant investment commitments. Notably, the $34.82 billion figure does not include the $3 billion in investment commitments for Special Agro-Industrial Processing Zones (SAPZ) from entities such as the AfDB, Afreximbank, Arise Integrated Industrial Platforms, and the Islamic Development Bank. This brings the total investment interest for AIF 2023 to a remarkable $37.8 billion. Adesina clarified that this substantial amount was not initially included in the announced investment interest, as it did not transpire within a formal deal room setting.
Among the standout projects that garnered substantial investment commitments is the $5.9 billion railway project in Tanzania. This transformative initiative is poised to unlock the mining value chain in the East African country. The presence of Tanzanian President Samia Hassan at the forum underscored the significance of this project for the nation’s economic development, emphasizing the collaborative efforts required to propel Africa forward.
Another noteworthy commitment is the groundbreaking $300 million Public Private Partnership (PPP) power transmission project in Kenya. This pioneering venture encompasses the development, financing, construction, and operation of two power transmission lines in East Africa. These include a 165km 400kV transmission line with associated substations and a 72km 220kV transmission line with associated substations.
This project is anticipated to be the first transmission PPP on the continent and is positioned to become a landmark transaction for Africa. The sponsors have demonstrated readiness by identifying and optimizing routing lines, conducting thorough environmental and social analyses, and implementing a competitive engineering, procurement, and construction (EPC) tender process. The project’s Value-for-Money thesis has been confirmed, and an availability-based tariff scheme has been refined.
In his closing remarks, Adesina expressed elation about the shifting narrative in Africa. “The continent is no longer going to be at the bottom of the value chain and will not play second fiddle anymore,” he declared. This record-breaking investment interest reflects a growing confidence in Africa’s economic prospects, with financial institutions on the continent ready to embrace and drive positive change.
The success of AIF 2023 underscores the immense potential within Africa and signals a promising shift in the dynamics of the continent’s economic landscape. As the world looks towards Africa as a hub of innovation and investment, the collaborative efforts and commitment showcased at the forum set the stage for transformative projects that will contribute to sustainable development and economic growth across the continent. The record-breaking figures from AIF 2023 solidify Africa’s position as an emerging economic powerhouse, poised for significant and positive transformation in the years to come.