Bridging Africa's investment gap

Africa's investment landscape is evolving at a rapid pace, with more investors entering the continent and driving growth. Despite this progress, there are still significant gaps in the market, particularly when it comes to growth stage investors. Anne-Marie Chidzero, Chief Investments Officer at FSD Africa, sat down with CNBC Africa to discuss the need for innovative thinking to bridge Africa's investment gap. Chidzero highlighted the importance of developing financial instruments and structures to meet the specific needs of Africa's financial system. She emphasized that the continent's vibrant SMME sector, especially in tech, early-stage businesses, climate finance, health, and services, is driving private sector investment and will continue to be the engine of growth. To support these businesses, Chidzero stressed the necessity of creativity and innovation in designing financial solutions tailored to African enterprises. The recent global banking crisis and economic challenges have raised concerns about Western investors shying away from Africa. However, Chidzero noted that different types of investors, including development finance institutions, impact investors, and organizations like FSD Africa, are collaborating to create investment vehicles that address the continent's growth needs. These investors are willing to take on risks to support businesses that generate economic opportunities, create jobs, and tackle pressing issues like energy access and climate change. Chidzero emphasized the importance of long-term investment strategies focused on impact and urged stakeholders to work together to blend different risk-return profiles for sustainable growth in Africa.