The just-concluded Eighth Tokyo International Conference on African Development (TICAD8) resulted in the the announcement of Japan’s $4 billion green growth initiative with Africa and a $70 million investment fund for startups.
In the context of these important partnerships with the private sector, the African Development Bank and the United Nations Development Program (UNDP) organized the Continental Conference of African Investors on the sidelines of TICAD8. Held on September 6, 2022, the virtual event brought together the private and public sectors, attracting some 300 participants, to discuss investment opportunities in the green and blue economies that can drive inclusive growth and help achieve the Goals. sustainable development (SDGs) on the African continent.
In her opening remarks, Sarah Poole, UNDP Deputy Assistant Administrator and Head of the Regional Bureau for Arab States, mentioned that the annual SDG financing gap in Africa has increased to $353 billion due to unexpected external shocks. , such as Covid-19. 19 pandemic. She also explained how development partners such as UNDP can support the creation of enabling conditions to direct funding flows to proven investment opportunities aligned with the SDGs: “In collaboration with governments and partners, UNDP has developed SDG Investor Maps, which have allowed us to guide investor decision-making towards the SDGs and direct capital to where it is most needed, as part of the broader mainstreaming of flows public and private as well as domestic and international funding,” Poole said, noting that the SDGs are expected to generate $12 trillion in market opportunities.
The national investment promotion agencies of Djibouti, Mauritius and Nigeria presented investment opportunities from their respective SDG investor cards. Ken Poonoosamy, CEO of the Economic Development Board, highlighted Mauritius’ positive economic outlook and discussed the Decentralized water treatment and supply systems investment opportunity and its Energies des Mascareignes project, which aims to achieve a zero-waste tuna industry.
John Oseji, Director of the Department of Defense Policy of the Nigerian Investment Promotion Commission, spoke about the Deep water ports and introduced the Ondo State Investment Study Project which is capable of supporting modern transport vessels. Rahma Omar Kamil, Director of Investments of the National Agency for the Promotion of Investments, spoke about the significant wind potential of Djibouti, underlining the Large scale wind power generation investment opportunity.
Country spotlights were followed by a dynamic panel discussion on how the Japanese private sector can realize investment opportunities in Africa and what support public institutions can provide to accelerate investments in green and sustainable economies. blue of Africa. Akira Wada of Toyota Tsusho Corporation said Japanese investors are committed to investing in Africa as a new frontier, especially around renewable energy opportunities.
Florian Kemmerich of Bamboo Capital Partners confirmed the dynamism of African markets. “Our investment focus is on what is known as the ‘missing middle’ to finance, through loans and equity, rural SMEs, start-ups, but also financial institutions so that they can locate the financing themselves.”
The UN Capital Development Fund, represented by Executive Director Preeti Sinha, highlighted how development partners can catalyze private capital into the green and blue economy: “For example, in The Gambia, the Capital Development Fund United Nations relied on UNDP project procurement financial structuring and administration of a $9 million multi-donor trust fund guarantee for a solar energy project, which resulted in a private investment of $15 million through harm reduction support.
Wale Shonibare, Director of Energy Financial Solutions for Policy and Regulation at the African Development Bank, said: “Private sector opportunities, like those captured in the SDG Investor Maps, will enable regional integration and propel African economies. in the future through African continental free movement. Trade Area (AfCFTA) serves as a unique catalyst. Development finance institutions such as the African Development Bank can work with governments and the private sector to create synergies for maximum impact, for example through initiatives such as the Sustainable Energy Fund for Africa (SEFA) and the Guarantee Fund for Africa, promoting private investment in energy-efficient projects. technologies and business models, with the aim of decarbonizing African economies and accelerating the continent’s energy transition.
As noted by the panel moderator, Dr Ayodele Odusola, Director of the UNDP Sustainable Finance Center in Africa and UNDP Resident Representative in South Africa, “Now is the time for the public-private collaboration showcased in the of TICAD 8. More than ever, we see a wealth of investment opportunities for the Japanese private sector in African markets, which is essential for the continent’s transformative development and the realization of Africa’s Agenda 2063. African Union (AU).
To follow a recording of the Africa Continental Investor Convening, click on here. For SDG Investor Map results from Djibouti, Mauritius and Nigeria and 20 other countries, with over 400 SDG investment opportunities, please visit the SDG Investor Platform: https://sdginvestorplatform.undp.org/market-intelligence.