How the U.S. plans to make Africa a big investment destination

In a bid to enhance collaboration between the United States and key markets in Africa, Cameron Khosrowshahi, Senior Investment Advisor for Prosper Africa, and Daniel Miller, Deputy Executive Director for the New York City Board of Education Retirement Systems, recently engaged in discussions aimed at bolstering investment opportunities on the continent. The primary focus of their visit to Johannesburg was to attract the interest of large institutional investors in the United States in Africa as a prime investment destination. Khosrowshahi highlighted the importance of developing peer-to-peer relationships with African counterparts, particularly with pension funds and insurance companies, to drive investments and foster economic growth. The delegation included 20 asset owners who are accustomed to making significant investments, with checks not falling below $100 million. This poses a challenge in Africa where many projects are smaller in scale. To bridge this gap, financial intermediaries like Standard Bank are essential to aggregate projects and spread risks across various jurisdictions, ensuring successful investment outcomes. Standard Bank, a key partner of Prosper Africa, operates across the African continent and plays a crucial role in facilitating large-scale investments by leveraging its extensive asset base. The collaboration with Standard Bank and other financial institutions is vital to attracting substantial capital and deploying it effectively in Africa. Daniel Miller, representing the New York City Board of Education Retirement Systems, shared insights into their annual investment of approximately a billion dollars across various asset classes such as private equity, real estate, and private credit. Miller emphasized the importance of meeting with African managers and investors on the ground to overcome perceived investment risks and explore lucrative opportunities. By engaging with diverse professionals, including members of the Black Securities Association, Miller aims to foster inclusivity and promote wealth equality in investment decisions. The delegation's discussions extend beyond meeting with pension funds and managers to identifying investment opportunities and encouraging collaboration among stakeholders. Amid South Africa’s ongoing energy crisis, Khosrowshahi highlighted the significance of addressing power availability and access as a critical factor in driving economic growth. Drawing on the success of the Power Africa initiative initiated during the Obama administration, Khosrowshahi emphasized the need for a collaborative approach involving donor funds, US investments, and South African resources to achieve a decarbonized future. He reiterated the importance of engaging with key stakeholders, such as the SCOM pension fund, to explore innovative strategies for addressing energy challenges and paving the way for sustainable development. Khosrowshahi emphasized the role of the private sector in scaling up investments and accelerating progress toward a more energy-efficient future in South Africa.