The Africa Investment Forum, held in Rabat, Morocco from December 4th to 6th this year, highlighted the continent’s abundant investment prospects. The event, centered around the theme “Leveraging Innovative Partnerships for Scale,” attracted the largest audience since its launch in 2018, with 1,707 investors from 200 institutions across 83 countries.

In his opening address, Dr. Akinwumi Adesina, the president and chairman of the board of directors of the African Development Bank Group, made a powerful case for increased investments in Africa. He encouraged investors to “trust the data” rather than be swayed by negative stereotypes about the continent. He pointed out that Africa is expected to represent a quarter of the global population by 2050, which will drastically raise the demand for various goods and services.

Dynamic Forum Participation Highlights Africa’s Unique Investment Landscape

“The demand for housing is projected to surge, creating an investment opportunity worth up to $1.4 trillion. By 2030, Africa’s food and agriculture sector is anticipated to reach $1 trillion. Moreover, an annual investment potential of at least $170 billion exists for infrastructure across sectors such as energy, transportation, water and sanitation, among others,” he emphasized, adding that “Africa provides a distinctive investment landscape that must be acknowledged.”

Dr. Adesina, who received the “African of the Decade Award” at the forum’s conclusion, noted that the remarkable attendance illustrates the wealth of opportunities for value creation on the continent. This year’s forum attracted delegations from India, China, and Japan, signifying a growing interest in African investments. A survey conducted in 2024 by the Africa Private Equity Capital Association indicated that 85% of limited partners plan to increase their private capital allocations to Africa within two years, with 52% considering Africa more attractive than other emerging markets in five years. Given Africa’s significant potential in key green transition minerals, its electric vehicle production value is expected to climb from $7 trillion in 2030 to $59 trillion by 2050.

Morocco’s Finance Minister Advocates for Structural Reforms

During her welcoming remarks, Morocco’s finance minister, Nadia Fettah Alaoui, praised the founding partners of the Africa Investment Forum for their joint efforts to enhance investment in Africa. “At this critical juncture, development partners must strengthen strategic collaborations and work cohesively for a greater impact in addressing the escalating challenges faced by African countries,” she stated.

While acknowledging the progress made in attracting private investment, Alaoui emphasized the need for further efforts to close the financing gap for the Sustainable Development Goals. She called on development partners to intensify support for the structural reforms undertaken by African governments, promoting private initiatives and well-designed, financially viable projects. “These reforms should encompass measures to enhance macroeconomic fundamentals and improve the investment climate, ultimately transforming risk perceptions and dismantling longstanding biases against Africa, thus allowing private stakeholders to fully utilize their financial capacities,” she asserted. Alaoui also urged global partners to work together to establish a more effective international financial safety net for timely and automatic liquidity access, which would help alleviate investment risk premiums.

New Investments Totalling $29.5 Billion and Major Agreements Finalized

Throughout its previous editions, the Africa Investment Forum has attracted $180 billion in investment interest and facilitated transactions totaling $30 billion, establishing itself as the leading platform for channeling investments into the continent. After three days of targeted discussions, this year’s market days at the AIF generated $29.5 billion in new investor commitments across a wide range of sectors, including transportation, energy, agribusiness, manufacturing, mining, pharmaceuticals, private equity, tourism, urban infrastructure, and water management. This result arose from a total of $40.9 billion in deals presented to investors across 41 specialized boardrooms set up during the forum, which included 34 investment-ready opportunities and 7 at the early-stage level, highlighting a variety of options for potential investors.

Numerous significant agreements were reached during the AIF. Seedstars Africa Ventures I, a venture capital fund dedicated to early-stage investments in scalable African startups, announced its initial closing at $42 million, supported by the African Development Bank, EIB Global (part of the EU’s ACP Trust Fund and Boost Africa initiative), and other international backers. Additionally, the African Development Bank and Bank of Africa SA forged a €50 million risk-sharing agreement aimed at boosting private-sector financing and enhancing African trade, targeting an additional €200 million in trade support for SMEs across over 20 African nations.

Another agreement was made between the African Development Bank Group, the Development Bank of Southern Africa (DBSA), and institutional investors to assess a multi-originator synthetic securitization transaction aimed at attracting private capital and mitigating risks confronted by African development finance institutions. This initiative builds upon the successful $1 billion Room to Run Programme and aspires to create a platform to enhance lending capabilities for significant projects in climate finance, infrastructure, and financial intermediation.

$6 Billion Mattei Plan Aims to Establish an Energy Hub

At the AIF, a collaboration was established between SACE, an Italian insurance-financial group, and the African Development Bank Group to provide credit protection and stimulate investments in Africa under the “Mattei Plan.” This agreement is part of a broader initiative by the Italian Government in partnership with the Bank, focused on supporting transformative projects across sectors such as infrastructure,

agribusiness, healthcare, energy, and education. The $6 billion Mattei Plan, introduced earlier by Italian Prime Minister Georgia Meloni, aims to reinforce economic ties and create an energy hub, prioritizing countries like Algeria, Egypt, Ethiopia, and Morocco. SACE’s financial services, including the Push Strategy, will enhance connections between African buyers and Italian SMEs, bolstering business relations between Italy and Africa.

The AIF is an initiative supported by nine Development Finance Institutions, comprising the AfDB Group, Africa50, Afreximbank, IsDB, DBSA, EIB, TDB, BADEA, and AFC. This year, it welcomed the Arab Bank for Economic Development in Africa to its founding partners, further broadening its scope and influence.