The 21st Annual Conference of the African Private Capital Association (AVCA) in Lagos witnessed a significant announcement regarding investment in Africa’s future. Global and African investors pledged a collective $500 million to bolster power infrastructure, industrialization, and other crucial development projects across the continent. This commitment underscores a growing recognition of Africa’s investment potential and the urgent need for capital to unlock its economic growth. The focus on local capital mobilization signifies a shift towards harnessing internal resources to drive sustainable development, reducing reliance on external funding, and fostering greater ownership of African development initiatives.
Dave Uduanu, CEO of Access ARM Pensions, revealed a collaborative strategy involving pooling resources with other pension funds to create pan-African investment vehicles. This approach aims to amplify the impact of African capital by enabling larger-scale investments that extend beyond national borders. Uduanu highlighted the power sector as a key investment area due to the significant existing gap and the inherent potential for profitability regardless of currency fluctuations, provided the underlying fundamentals are sound. This targeted approach reflects a pragmatic investment philosophy focused on sectors with significant need and strong potential returns.
Nigeria’s Minister of Industry, Trade and Investment, Jumoke Oduwole, emphasized the importance of supporting local production and long-term capital strategies to facilitate the growth and scaling of African economies. Highlighting Nigeria’s $3.4 trillion economy as a promising platform, Oduwole outlined the government’s commitment to translating policy into tangible performance. The Minister articulated Nigeria’s economic transformation agenda, which includes diversifying capital market exit strategies, enhancing acquisition frameworks, and bolstering private sector growth. This proactive stance aims to create a more conducive investment environment and attract further capital inflows.
Aliko Dangote, Founder of Dangote Industries, underscored the crucial need for prioritizing domestic manufacturing to reduce import dependency and stimulate local economies. His advocacy for backward integration as a key driver of prosperity reflects a broader push for self-reliance and value creation within Africa. Dangote urged investors to exhibit patience with African markets, emphasizing the importance of building systems that scale organically from within the continent. This long-term perspective emphasizes the need for sustainable development rather than short-term gains.
The conference also highlighted the potential of the creative sector as a catalyst for job creation and economic value. Mo Abudu, CEO of EbonyLife Group, emphasized the sector’s capacity to generate economic activity, provided that the right investment model, tailored to local realities, is implemented. She cited the development of a uniquely Nigerian Over-The-Top (OTT) platform as an example of the sector’s innovative potential and growing appeal to financial institutions. This underscores the increasing recognition of the creative industry’s economic significance and its capacity to attract investment.
The appointment of Danladi Verheijen, CEO of Verod Capital, as the new Chair of AVCA’s Board of Directors, and Ann Wyman of AfricInvest as Vice Chair signals a renewed focus on driving private capital investment in Africa. The AVCA’s call for increased capital deployment into Nigeria’s economy reinforces the conference’s central theme: harnessing the power of investment to drive sustainable growth and development across the continent. These leadership changes and calls to action demonstrate a concerted effort to mobilize capital and unlock the vast economic potential that resides within Africa.
