How can African stocks attract a new crop of investors?

The Covid-19 pandemic has caused a significant increase in capital flight from the continent, with many investors seeking safer investment options. However, could these conditions serve as an opportunity for African markets to attract a new wave of investors? Ejike Egbuagu, the CEO of Moneda Invest, believes that the current situation presents a unique chance for African economies to capitalize on their raw materials and expand their production and refining processes. Egbuagu points out that African markets have historically relied on exporting raw materials but now have the potential to move towards refining and local production, creating job opportunities and wealth generation within the continent. Egbuagu emphasizes the importance of showcasing the diverse raw materials that Africa possesses, which range from agriculture to minerals like lead and cobalt. By shifting the focus towards adding value to these resources through refining and local production, African countries can attract investors who are looking to tap into the continent's potential for growth and development. In a discussion about the decrease in capital inflows to the continent, Egbuagu acknowledges the competitive nature of attracting capital from global markets. However, he highlights Africa's growing population and the abundance of raw materials as key advantages that can draw investors. Using Rwanda as an example, Egbuagu showcases how investments in sectors like tourism and sports can drive economic growth and attract capital. By leveraging African talent and resources, Egbuagu believes that the continent can create sustainable revenue streams and capitalize on its unique strengths. Furthermore, Egbuagu addresses the issue of infrastructure development in Africa, noting that it is crucial for attracting investments and expanding markets. He points out the lack of infrastructure, such as roads and trade routes, as a hindrance to maximizing the continent's economic potential. However, Egbuagu presents a solution that Moneda Invest has implemented in Nigeria, where they have invested in backward integration and infrastructure development to support local manufacturing processes. By investing in supply chains, warehousing, and manpower training, Moneda Invest aims to create a self-sustaining ecosystem that fosters economic growth and reduces dependency on imported goods. As African economies strive to attract new investors and enhance infrastructure, initiatives like the African Continental Free Trade Area Agreement play a significant role in promoting intra-African trade and economic integration. Egbuagu's vision for unlocking African markets involves a comprehensive approach that combines investment in local production, value addition to raw materials, and infrastructure development to create a conducive environment for sustainable economic growth. In conclusion, the current challenges facing African markets amidst the Covid-19 pandemic present an opportunity for innovation and transformation. By focusing on value addition, infrastructure development, and strategic investments, African economies can attract a new crop of investors and set a course for long-term prosperity and development.