Accra, Jan. 8, -There are many
ways to measure development in a region, a country or even a continent.
Freedom, prosperity, health and stability are all pillars of progress, and
opportunity is the foundation. But this week as I return to Africa for the
first time in ten years, I am reminded that investors are one of the most
reliable indicators of development and overall progress. Investment flows
signal recognition of an opportunity, and can herald accelerating development
beyond aid-based need.
There was a time when relatively
few foreign investors recognized Africa’s potential. But for several years now,
Africa has been widely seen as a region that not only had a great need for
investment in infrastructure, healthcare, technology and agriculture, but also
a place that offered investors some of the best opportunities on the planet.
Today, many of the world’s
fastest-growing economies are in Africa, and the World Bank, which measures the
ease of doing business in 190 countries around the world, recently identified
Sub-Saharan Africa as the region that leads the world in adopting reforms to
improve the business climate.
These strong rankings and growth
rates are certainly impressive. Perhaps even more compelling are the other
signs that confirm Africa’s improving business climate is a long-term trend
that will likely endure through the ups and downs that all economies
experience. Recent research shows that the investor interest Africa is seeing
today is part of a structural change that is likely to be sustained through
periods of economic downturn like the recent slump in commodities prices that
have hit many African economies. In 2016, there was a 32 percent rise in
capital investment projects in Africa.
Indeed, while aid dollars have
traditionally dominated capital flows into Africa, investment is growing
rapidly. As these investors tap into Africa’s potential, they are also helping
to fuel its growth.
The Overseas Private Investment
Corporation (OPIC) is a U.S. agency that helps businesses invest in developing
markets around the world and we’ve long recognized the potential of Africa and
its people. Our portfolio in Africa has grown from about $1 billion in 2002 to
$7 billion today. When I travel with a team from OPIC to Ghana and West Africa
this week, I’ll see the impact that investment has had, from Cameroon — where a
new hospital is providing sight-saving surgery to thousands — to Togo, where a
major power plant tripled electricity generation capacity. Here in Ghana, OPIC
has supported investment in many sectors, from a sweeping project to introduce
more advanced healthcare equipment, to a major power plant, to a mortgage
company that helped simplify land registry, enabling more people to purchase
homes.
These projects are all a
testament to the local governments that have committed to adopting reforms to
attract more investors, as well as the people of Africa, who comprise a large
and growing population that are recognized around the world as a powerful
force. By 2050, a full quarter of the world’s population will be Africans, most
of them under the age of 30.
OPIC is proud to support
investment that is having such a positive impact, but we also understand that
much more must be done to create opportunity for Africa’s rapidly growing,
increasingly urban population, and to connect the continent to the rest of the
world.
Better supply chains will be
needed to improve trade within countries and across borders. Thousands of miles
of road will have to be paved. Ports will have to be modernized. More power
generation capacity will have to be added. And all this will require
significant resources.
In recent years we’ve seen how
investment has helped transform Africa. Investors have built critical
infrastructure like power plants that are not only improving the quality of
life in places like Ghana but also supporting increased business activity. By
strengthening telecommunications networks, they have helped foster connectivity
with the rest of the world. They are providing financing to small businesses that
are a key source of jobs and opportunity, and they are investing in Africa’s
smallest farms, helping them improve their yields and reach larger markets. And
these investors will be essential to Africa’s next wave of growth. As long as
Africa continues to offer opportunities for investment, development will
continue to foster growth and stability.
END
Edward Burrier is the Vice
President for External Affairs at the Overseas Private Investment Corporation
(OPIC), the US Government’s development finance institution. He leads the
Agency’s relationships with Congress, stakeholders, and other Federal agencies
as well as oversees the OPIC’s communications media, public engagement, digital
and outreach strategies.
He is in Ghana today as part of a
three-country visit to West Africa.
GNA
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