Africa Investment Forum roots for more domestic capital raising

African countries have been encouraged to capitalize on the opportunities presented by industrialization, which could potentially boost the continent's GDP by 20 per cent. The call to action was made by Samaila Zubairu, the President and CEO of the Africa Finance Corporation (AFC), at the Africa Investment Forum in Morocco. Zubairu emphasized the importance of structural transformation for Africa, stressing the need for value retention within the continent to spur job creation and enhance job quality. He highlighted the significance of understanding the 'why' of industrialization, as it paves the way for a smoother journey towards achieving desired outcomes. Zubairu pointed out a notable advancement in Africa's industrial landscape with the establishment of the first carbon-neutral certified industrial zone on the continent. He underscored the crucial role of leveraging Africa's abundant critical minerals and metals, particularly in the context of the booming electric vehicle industry. By strategically developing these resources, Africa can drive industrialization while fostering responsible resource utilization. Moreover, Zubairu outlined the imperative of building robust value chains, from mining to port infrastructure, to facilitate intra-African trade. He highlighted the potential for the African Continental Free Trade Area to catalyze economic growth by boosting GDP through increased trade among African nations. The emphasis on domestic capital mobilization was a key point of discussion, with Zubairu advocating for de-risking opportunities to attract local investments before seeking foreign capital. The conversation also delved into the necessity for African self-sufficiency, especially in light of global challenges such as political crises and the COVID-19 pandemic. Zubairu emphasized the importance of collaborative efforts among various stakeholders, including African governments, development finance institutions, and private sector entities, to drive infrastructure development and industrialization across the continent. The Africa Investment Forum served as a platform for fostering partnerships and deal-making initiatives aimed at accelerating economic growth. Zubairu expressed excitement about the collaborative opportunities presented by the forum, citing successful models like Infra Credit in Nigeria that can be replicated continent-wide to channel domestic savings into critical infrastructure investments. In discussing intergovernmental cooperation, Zubairu highlighted a recent partnership with the Solid Minerals Development Fund in Nigeria as a model for de-risking mining investments. By working hand-in-hand with governments and institutional investors, Africa can unlock opportunities in vital sectors like mining, energy, and infrastructure, ultimately driving job creation, export revenue growth, and economic stability. Zubairu underscored the importance of local citizen participation in industrial and infrastructure projects, emphasizing the need to empower workers through asset ownership. By involving local investors and citizens in these ventures, Africa can foster equity and improve the quality of life for its populace, laying the foundation for sustainable economic development and social progress.