‘Political stability, security key to growth in Africa’

JOHANNESBURG

African nations need to maintain political stability and security if they are to attract investors to commit capital into their economies, South Africa's president said on Monday.

“Much of the economic progress over the last few years has been made possible by developments in the political sphere. Global investor surveys consistently highlight political stability and security as important considerations for committing capital,” Cyril Ramaphosa said at the opening ceremony of the 2nd Africa Investment Forum in Johannesburg.

Ramaphosa said 2019 has been “a good year for the consolidation of democracy” across the continent, which he believes, would give confidence to investors to inject more funds into the continent to help propel its economic growth.

“National, Presidential and Parliamentary elections have been held in Botswana, Malawi, Mauritanian, Namibia, Nigeria, Mozambique and right here in South Africa [in 2019],” he recalled.

The South African leader said each election that passes successfully challenges the notion that Africa is unstable and a risky place to invest .

“Political stability in many African countries has enabled us to industrialize, and to pursue development policies that have brought millions of people out of abject poverty, resulting in rising income levels,” he added.

The annual investment forum has brought together African governments, sovereign wealth funds, the private sector, financial intermediaries among others to find ways to unlock the continents untapped economic potential.

“The Africa Investment Forum is designed to be a transformative platform for deals across the continent," Chinelo Anohu, head and senior director of the Africa Investment Forum, was quoted as saying by the African Development Bank Group (AFDB).

"It [the forum] is continuous process of nurturing deals, projects preparation, deal closure, meeting boardrooms, but most importantly ensuring that those deals actually happen to impact the continent,” he added.

Last year, 350 investors from 53 countries participated in the forum which is fast becoming the premier platform for engagement on Africa's growth and development.

The forum last year, mobilized funding for many development projects and initiatives on the continent including the Accra Sky train, Kigali innovation city and the first road-rail bridge project linking Kinshasa, the capital of Democratic Republic of Congo, with Brazzaville, the capital of the Republic of Congo.

The second edition of the forum, organized by the African Development Bank and its partners, will conclude on Nov. 13.