Tsele: Trade collaborations vital for investment growth

The African Development Bank Annual Meetings in Nairobi, Kenya have brought together a conglomeration of African investors and Development Finance Institutions (DFIs) to discuss the progress and future of industrialization on the continent. During the conference, Josephine Tsele, the Risk Officer at the Industrial Development Corporation (IDC) of South Africa, highlighted the country's efforts towards industrialization and the importance of trade collaborations for investment growth. Tsele emphasized the significance of infrastructure investment in achieving industrialization in South Africa, focusing on areas such as ports, cold storage facilities, renewable energy, and border post improvements to facilitate the movement of goods within Africa and beyond. She stressed the importance of adding value to South African manufactured goods to enhance their competitiveness in the global market. Tsele also discussed the alignment of South Africa's goals with the broader objectives of BRICS (Brazil, Russia, India, China, and South Africa), particularly in terms of trade collaboration, regionalization, and improved investment in emerging economies. With South Africa being a representative of the continent within BRICS, Tsele highlighted the importance of working together with emerging economies to enhance investment opportunities and drive economic growth. Tsele also addressed the opportunities for investors from Iran, Saudi Arabia, and the UAE in Africa, emphasizing the continent's abundant natural resources and the potential for value addition in partnership with external investors. She mentioned the importance of infrastructure development, logistics improvements, and enhancing the value chain of primary products to benefit African communities, particularly youth, women, and children. Tsele pointed out agriculture and natural gas as key sectors for collaboration and investment in Africa, highlighting the need for infrastructure development and knowledge sharing to maximize the continent's potential in these areas. Lastly, Tsele discussed the challenges faced by South Africa in attracting private capital and the need for innovative financial instruments to drive investment. Despite the country's deep financial markets, the post-financial crisis period has seen a decrease in capital inflows. Tsele mentioned initiatives like the African Development Bank's sustainability funds and innovative instruments to attract investors and unlock development opportunities in South Africa. She expressed confidence in the country's skilled workforce and its ability to innovate and attract capital for growth and sustainability.