A few South African Ministers will represent the country at two important upcoming global events this week, namely the UK–Africa Investment Summit and the 2020 World Economic Forum (WEF).

Finance Minister Tito Mboweni and International Relations and Cooperation Minister Naledi Pandor were part of the delegation attending the Investment Summit, which took place in the UK on January 20.

The summit focused on four interactive sessions on sustainable finance, trade and investment, future African growth sectors and clean energy and climate.

Mboweni and Pandor will also, alongside Trade and Industry Minister Ebrahim Patel, attend the 2020 WEF, which will take place in Davos, Switzerland, from January 21 to January 24.

The fiftieth WEF yearly meeting is convened under the theme: ‘Stakeholders for a Cohesive and Sustainable World’. And according to the WEF, the meeting will bring together 3 000 global participants, who will be expected to give concrete meaning to “stakeholder capitalism”; assist governments and international institutions in tracking progress towards the Paris Agreement and the Sustainable Development Goals (SDGs); and facilitate discussions on technology and trade governance. 

The two delegations will communicate, at both the Investment Summit and the WEF, the message that while South Africa faces challenges of weak economic growth and fiscal pressures, “the country remains open for business as one of the best investment destinations in the world”.

The delegations will also highlight the strides being made to implement structural reforms to ignite economic growth, ease the cost of doing business, curb government debt and stabilise State-owned enterprises.

OPPORTUNITY FOR AFRICA

Development finance institution CDC Group on Monday announced its plans to invest £2-billion in African businesses over the next two years in efforts to double the size of its portfolio on the continent.

The UK’s publicly owned impact investor unveiled a string of new partnerships totalling nearly $400-million at the UK–Africa Investment Summit to support entrepreneurs and small and medium-sized enterprises (SMEs) across the continent. The bulk of these funds are intended to provide African banks with greater liquidity to support SMEs, entrepreneurs and microbusinesses in their regions.

CDC CE Nick O’Donohoe told UK investors to “embrace the huge opportunity” to support the UN’s SGDs.

He added that the commitments would accelerate the roll-out of solar power and other renewable technologies and support the growth of countless SMEs across the continent.

CDC is responsible for over 10% of all capital invested through Africa-focused private equity funds, and despite Africa being home to eight of the world’s 15 fastest-growing economies, the continent receives less than 4% of global foreign direct investment.

Pan-African telecoms, media and technology company Econet founder Strive Masiyiwa commented that “the role of development finance institutions like CDC is vital in providing much needed long-term patient capital for African entrepreneurs and businesses”.

He added that “there is a significant opportunity for UK investors to work with African businesses to create a brighter, sustainable and more prosperous future for the continent.” 

CDC already has investments in more than 700 African companies.

INCREASING APPETITE FOR BILATERAL TRADE

Meanwhile, new opportunities for bilateral trade and increasing UK investor appetite in Africa will be the main focus of the summit, which was convened by UK Prime Minister Boris Johnson, on January 20.

African Development Bank president Akinwumi Adesina is also expected in London for the milestone investment summit aimed at forging new partnerships under the theme: Partners for prosperity.

Highlights of Adesina’s UK trip include a plenary panel discussion on ‘Sustainable Finance and Infrastructure – Unlocking the City of London and UK financial services for growth in Africa,’ alongside Kenya President Uhuru Kenyatta and Ghana President Nana Akufo-Addo.

Discussions will focus on increasing access to investments in Africa and pursuing existing and untapped opportunities.

On January 21, Adesina will deliver a keynote at the Sustainable Infrastructure Forum, an associated event of the UK Africa Investment Summit, followed by another keynote address at the UK’s All-Party Parliament Group Symposium.

The one-day event, co-organised by the Royal African Society and Oxford Brooks University, will see the participation of UK parliamentarians, academics and policymakers.  

The future trade relationship between the UK and Africa and the African Continental Free Trade Area in the context of Brexit are expected to top discussions.

Over the next decade, Africa is expected to play an increasingly significant global role, and the continent’s population is projected to double to two-billion people by 2050, representing a quarter of the global population.

Africa and the UK are also long-standing partners, with trade standing at over £33-billion in 2018.