Africa Investment Forum: AFC’s Sanjeev Gupta on the need to change the narrative on Africa

Africa Finance Corporation (AFC) was established 12 years ago as a public-private partnership between African governments and the private sector with a primary focus on investing in and developing infrastructure across the continent. Over the past decade, AFC has made significant strides by investing approximately $6.6 billion in 30 African countries, highlighting the organization's commitment to addressing the infrastructure deficit that plagues the region. Despite the progress made, there is a recognition that much more needs to be done to meet the immense needs of Africa and create a robust manufacturing base. Sanjeev Gupta, the Executive Director for Financial Services at AFC, emphasized the critical role of the Africa Investment Forum (AIF) in facilitating collaboration and cooperation among various stakeholders to drive investment and development in the continent. Gupta highlighted the substantial global interest in investing in Africa and underscored the need for a platform like AIF to de-risk projects and attract diverse investors to support the continent's growth. The AIF serves as a hub for African banks, multilateral institutions, global corporations, and government agencies to engage in tangible discussions about live transactions, creating a conducive environment for investment and partnership. Moreover, Gupta addressed the prevailing negative narrative around investing in Africa and emphasized the need to debunk misconceptions about the perceived risks. While acknowledging the existence of risks, Gupta pointed out that the actual data on project finance in Africa reveals lower default rates compared to global averages, highlighting the disparity between perception and reality. He emphasized the importance of de-risking projects through collaboration with governments and the private sector to mitigate concerns around currency, political stability, and other potential challenges. Gupta emphasized the significance of thorough project structuring and post-project engagement to ensure successful outcomes and manage risks effectively. Additionally, Gupta addressed the development challenges in Africa, recognizing the need for increased firepower to address the continent's growing needs. While Africa has attracted significant capital, the deployment of funds remains a challenge, and there is a substantial gap between the capital available and the requirements for sustainable development. Gupta stressed the imperative for African nations to take ownership of their development agenda, create conducive business environments, and attract global capital to bridge the investment gap. Despite the monumental infrastructure requirements in Africa, estimated at around $200 billion, Gupta emphasized the pivotal role of the private sector and global capital in driving sustainable development and economic growth across the continent.