Investing in Africa: There is more than just FDI

THE future for many Africans is uncertain as the world continues dealing with the COVID-19 pandemic whose increase and mutation is necessitating lockdowns in different parts globally.

The majority of the affected millions are now either out of work or in limbo since some companies have opted for unpaid leave for their employees instead of laying them off.

Accordingly, the COVID-19 pandemic has potentially farreaching and multifaceted indirect impacts on societies and economies.

These effects could last for a long time after the health emergency is over.

The extended negative effects of the pandemic could aggravate existing instabilities or crises, or lead to new ones with repercussions on individuals’ emotional and economic wellbeing, food security and livelihoods.

With this reality, though, there are several opportunities that African governments should exploit to ensure that they cushion their people, especially the very vulnerable, from the suffering that the pandemic is leaving in its wake.

While the short-term interventions are welcome, there is more that can be done on the continent to ensure the sustainability of livelihoods.

According to the Africa Investment Forum (AIF), domestic manufacturing is a path to expand intra-continental trade, while also reasserting Africa’s position in global markets.

The role of the private sector cannot be underestimated, especially with the rolling out of the African Continental Free Trade Area.

For foreign direct investment, investors should not view Africa as a single market.

AIF senior director Chinelo Anohu says Africa is vast and with its 54 countries, there are 54 different outlooks, 54 kinds of resources, and 54 different ways of managing those resources.

However, he believes that Africa will remain the key investment destination.

The AIF’s approach is to solve problems and to proffer innovative solutions, according to Anohu.

The opportunities available in Africa due to the pandemic include a vaccine innovation project in Kenya, a cotton processing plant in Angola and a Nigerian telemedicine initiative.

All these show that the continent is leveraging on the pandemic but governments have to do more to ensure that these innovations to do stall midway.

Concerned