SouthBridge Group CEO on COVID-19 impact on African economies

The impact of Covid-19 on African economies has been profound, with governments and investors facing unprecedented challenges. Andrew Alli, CEO of SouthBridge Group, a prominent African investment bank with a portfolio of $4.5 billion across 30 countries, shared insights on the current situation and the opportunities that may arise post-pandemic. Alli, who is currently stranded in London due to travel restrictions, highlighted the economic shocks faced by African governments and the crucial role of organizations like SouthBridge in providing advice and support during these difficult times. With revenues declining and uncertainty prevailing, governments are turning to institutions like the IMF for assistance, but long-term planning is essential to navigate the crisis effectively. On the private sector front, Alli noted a mixed picture, with some investors finding potential upside in certain sectors while others adopt a cautious approach. Import substitution, a strategy that had been abandoned in recent years, may resurface as supply chains are reconfigured post-Covid. This presents an opportunity for local manufacturing in Africa, both for domestic consumption and export markets. With the promotion of manufacturing and the potential for business process outsourcing, African countries could leverage the changing landscape to bolster their economies and attract investment. Alli's insights shed light on the resilience and adaptability of African economies amidst unprecedented challenges, pointing towards a future of emerging opportunities and growth prospects.