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Navigating Africa’s Investment Landscape

SpeakerS:

British Robinson, Coordinator, Prosper Africa, U.S. Agency for International Development (USAID)
The Hon. Meg Whitman, United States Ambassador to Kenya, U.S. Department of State
The Hon. Puneet Talwar, U.S. Ambassador, Kingdom of Morocco

With Core Programming Partner

“The numbers do not lie; from Ambassador Talwar's perch in Morocco to my office in Nairobi 4,000 miles away, this is a very young and growing continent. By 2050, one in four people and one in three working-age people will live in Africa.” Ambassador Meg Whitman
“Moroccan companies can be your partner in Africa. They've been doing business in especially West and Central Africa for decades, and they've been doing very well. They make a lot of money, and they want to partner with Americans.” Ambassador Puneet Talwar
“Through our work, we mobilize instruments, services, and resources across 17 U.S. government agencies to empower businesses and investors with risk mitigation, market insights, deal support, and financing opportunities.” British Robinson

Key takeaways:

  • Rapid population growth: By 2050, Africa’s population is projected to double to 2.5 billion, accounting for one in four people globally, and one in three of working age, presenting a vast labor force and consumer market. 
  • Young, urban, and digitally connected: Africa hosts a youth-heavy population that is increasingly urbanized and digitally connected, offering significant opportunities for innovation and economic growth. 
  • US-africa economic engagement: Strengthening trade and investment ties today is crucial for being part of Africa’s future economic landscape. The U.S. government aims to support African nations in charting their development journey through free and transparent markets. 
  • SMEs as an engine of growth: In Kenya, there are approximately 18 million micro, small, and medium enterprises, half of which are formally registered. SMEs are the cornerstone of economic growth in both the United States and Kenya.
  • Potential for expansion: With the right investment partners, many of these Kenyan SMEs are poised for significant growth, contributing to economic resilience and recovery post-pandemic.
  • Corruption as a barrier to investment: Corruption remains a significant barrier to investment in many countries, including Kenya. Combating corruption is essential to unlocking economic potential and attracting foreign investment.
  • Policy reforms: Efforts are underway to remove bureaucratic barriers, such as eliminating VAT on export services, introducing new tax incentives, and revitalizing special economic zones in Kenya. 
  • Kenya’s green energy: 90% of Kenya’s electricity comes from renewable sources. The thriving green energy sector can help U.S. companies meet greenhouse gas emission goals while fostering sustainable development. 
  • Morocco’s renewable investments: Morocco is investing heavily in renewable energy, including hydrogen, leveraging its strategic location to provide stable energy supplies less susceptible to global disruptions. 
  • Correcting preconceived notions: There are incorrect preconceived notions about the risks of doing business in Africa. In reality, countries like Morocco and Kenya offer vibrant entrepreneurial ecosystems and significant opportunities for investors. 
  • Strategic positioning: Morocco serves as a gateway to the African continent, with logistical advantages such as proximity to the U.S. and expanding flight connections. 

Action items:

  • Increase engagement with African markets: Businesses and investors should actively seek opportunities in African markets to be part of the continent’s future growth story. 
  • Support and invest in SMEs: Focus on investing in small and medium-sized enterprises in Africa, which are critical drivers of economic growth and job creation. 
  • Leverage renewable energy opportunities: Invest in Africa’s renewable energy sectors, particularly in Kenya and Morocco, to contribute to sustainable development and meet global emission targets. 
  • Advocate for policy reforms: Collaborate with governments to promote policy changes that reduce bureaucratic barriers and combat corruption, facilitating a more conducive environment for investment.
  • Foster partnerships with local companies: Mitigate investment risks by establishing partnerships with experienced local enterprises in Morocco and Kenya.
  • Educate about african markets: Work to dispel misconceptions about the risks of doing business in Africa by sharing success stories and accurate information.
  • Explore logistical advantages: Utilize the strategic geographical positions of countries like Morocco as gateways to the wider African market, taking advantage of expanding direct flight connections and infrastructure.
  • Promote youth engagement: Support initiatives that empower the young, digitally connected population in Africa, fostering innovation and entrepreneurial activities. 

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