Why investors need to understand opportunities in Africa

Investors seeking to tap into the burgeoning markets of Africa must first understand the vast opportunities available on the continent. Tom Plofchan, the Chief Investment Officer at Pangiam, emphasized the necessity for greater exposure and information to attract foreign investment into Africa. During an interview at the Africa Walk 2023 in Senegal, Plofchan highlighted the crucial role of establishing Information Technology Infrastructure and global standards to enhance security at airports and seaports. The event served as a platform to bridge the gap between American investors and the African economy, providing a firsthand experience of the thriving business landscape in West Africa and North Africa. One of the major hurdles, as Plofchan noted, is the lack of understanding among organizations and individuals in the United States regarding the economic viability and demographic growth of Africa. This limited perspective hinders potential investors from exploring opportunities beyond their borders. The Africa Walk event has been instrumental in offering exposure to American investors and showcasing the innovative startups and corporate infrastructure in the region. Plofchan's company, Pangiam, specializes in developing technology solutions for airports and seaports to enhance security and streamline travel experiences. By leveraging their expertise from the U.S. Department of Homeland Security, Pangiam aims to modernize critical infrastructure in Africa, paving the way for increased intracontinental and intercontinental travel. The conversation also delved into the African Continental Free Trade Area (AfCFTA), a market of 1.4 billion people that presents immense potential for growth and integration. Plofchan drew parallels with the U.S. Customs and Border Protection model, emphasizing the importance of establishing common IT infrastructure and integration frameworks to facilitate seamless movement of people and goods across borders. Reflecting on his experience at the Africa Walk, Plofchan highlighted the power of Africa's human capital and the demographic trends that make the continent a compelling investment destination. With a young and growing population, Africa offers a unique opportunity for businesses to expand their trade and travel operations while contributing to the continent's economic development. As Plofchan prepares to return to the United States, he carries with him key insights on the business potential in Africa. He emphasizes the evolving stability, growing education levels, and demographic advantages that make Africa a prime location for investment. By dispelling misconceptions about risk and showcasing the untapped opportunities, Plofchan aims to inspire more American investors to explore and engage with the diverse market landscape in Africa.