Brigg Macadam on investing strategies in Africa amid slow vaccine rollout

Investing in Africa continues to present significant opportunities for infrastructure development and private capital investment, despite the slow rollout of COVID-19 vaccines on the continent. This assertion was emphasized by Greg Swenson, Founding Partner of an investment bank that finances infrastructure projects in Africa and the Middle East, in a recent CNBC Africa interview. Swenson highlighted the favorable demographics in Africa as a key factor driving investment interest, where 60% of the population is under 25 years old and only 2% is over 65. These demographics not only contribute to better COVID-19 outcomes compared to the West but also signify potential for growth in critical sectors like healthcare, telecoms, housing, and agriculture. Swenson expressed confidence in the resilience of African economies and the long-term benefits of investing in essential infrastructure. When queried about capital allocation and the areas offering the most promise, Swenson pointed to critical infrastructure as a key focus. He identified opportunities in telecoms, housing, agriculture, and logistics, stressing the importance of impactful investments that address fundamental needs in these sectors. Swenson emphasized the role of private equity, hedge fund investors, and development financial institutions (DFIs) from the West in driving capital formation for impactful projects. By leveraging private capital and engaging with DFIs, Swenson's firm aims to support and facilitate infrastructure development across Africa. Swenson noted a notable increase in capital formation for infrastructure projects in 2021, surpassing the levels seen in 2020 and even outpacing pre-pandemic levels in 2019. With an estimated infrastructure investment capacity of $100 billion annually, Africa presents a vast market for investors seeking sustainable and high-impact ventures. Swenson highlighted the optimism and enthusiasm surrounding African investments, with deals closing and significant interest from international investors, particularly from the US and Europe. Despite the positive outlook on investment opportunities in Africa, Swenson acknowledged the security challenges in certain regions, such as the recent attacks in Mozambique's Cabo Delgado province. Swenson emphasized the need to address security threats as a priority, citing potential risks to investments and economic stability in the affected areas. In response to security concerns, Swenson emphasized the importance of creating alternative opportunities for young people in the region through infrastructure projects, agriculture, and agribusiness initiatives. By providing job opportunities and economic empowerment, Swenson believes that addressing the root causes of insecurity can contribute to long-term stability and prosperity in these regions. In conclusion, Swenson's perspective on investing strategies in Africa underscores the resilience and potential of the continent's economies amid global challenges. By strategically allocating capital to critical infrastructure projects and addressing security concerns through sustainable development initiatives, investors like Swenson aim to drive positive change and economic growth in Africa.