Africa and Canada are partners in global growth

Africa is on the move. You can feel the surge everywhere. GDP growth rates are expected to top 4 per cent this year — surpassing the global average of 3.3 per cent — and 4.1per cent in 2020.

For a continent of 54 countries, averages don’t tell the full story. The fact is that 24 countries will grow this year at above 5 per cent, while 21 will grow at 3 per cent to 5 per cent. Africa’s burgeoning population, the fastest growing in the world, makes the continent a market that cannot be ignored.

The newly minted Continental Free Trade Area opens up an African market of combined GDP of $3.3 trillion, the largest free trade area in the world since the World Trade Organization was created.

Investors are pouring into Africa and Canada is looking more to Africa. Seven years ago, foreign direct investment from Canada into the continent was $1.45 billion. Two years later that rose to $5.76 billion. The opportunities are immense and investment is poised to go even higher.

The continent’s own bank, the African Development Bank, has launched an aggressive effort to drive greater investments into Africa. The bank’s Africa Investment Forum, launched in 2018, was a huge success, attracting investment commitments to Africa of $38.7 billion in less than 72 hours.

Canada’s Chris McLean, the CEO of Stonechair Capital, a private equity firm with rising investments in Africa says, “I’ve been travelling to Africa for over 20 years, doing investments, I have never seen anything like the Africa Investment Forum. It created seismic shifts.”

It’s a seismic shift that finds echoes in the same qualities to be found in Toronto Raptors president Masai Ujiri. A committed African from Nigeria and whose mother is Kenyan, Ujiri exudes confidence and transmits it to his team. He told Forbes Africa at the Africa Investment Forum last November, “Africa is no more afraid. We are not afraid of anybody anymore. The continent is bold. The people are bold.” As a result, Ujiri’s team has become Africa’s team.

The Raptors have drawn the attention of Africans to Canada and the interest of Canadians to Africa. Ujiri exemplifies the positive links that bind both sides together. I fully expected the Toronto Raptors to win the NBA Championship. Ujiri’s example of determination and confidence have not only energized Canada, but Africa.

Canada’s recent commitment of $1.1 billion in temporary callable capital to the African Development Bank, to help Africa’s own bank rally its 80 shareholder member countries to give the bank a significant general capital increase also speaks volumes. It will help Africa to spur even greater growth and development. It sends a powerful message: Canada is more than Africa’s friend. Canada is Africa’s strategic partner.