US investors look to expand Africa deals

US investors are looking to expand their deals in Africa as opportunities arise in various sectors across the continent. Derick De Zilva, CEO of Standard Bank New York, spoke to CNBC Africa's Fifi Peters on the sidelines of the U.S. Africa Business Summit in Dallas, Texas. The summit, now in its 16th year, focuses on Sustainable Partnerships for Success, emphasizing the need for collaboration between the U.S. and Africa. Standard Bank, as the largest lender on the African continent, sees this as a prime opportunity to strengthen connections and drive new business initiatives. De Zilva highlighted three key trends in investment flow from the U.S. to Africa. Firstly, global U.S. brands are expanding their presence in key consumer locations like Nigeria and South Africa, driving investment and creating job opportunities. Secondly, American companies are investing in infrastructure and extraction industries, boosting economic growth and development. Lastly, the influx of capital from the U.S. presents a unique opportunity to connect with investment opportunities in Africa, facilitating mutual benefits for both regions. Despite concerns about the level of foreign direct investment in Africa, De Zilva remains optimistic about the appetite for investment on the continent. He emphasized that companies are taking a measured approach to investing in Africa, acknowledging the risks but also recognizing the vast opportunities available. Standard Bank and other industry players are focused on finding effective mechanisms to facilitate investment flow and drive economic growth. When discussing the impact of geopolitics on investment decisions, De Zilva highlighted the importance of clear communication between African governments and U.S. partners. While geopolitical tensions can create uncertainty, the commitment to fostering U.S. participation in Africa's growth remains strong. Recent initiatives, such as the development of renewable energy projects and mineral extraction for battery manufacturing, demonstrate the potential for collaboration between the U.S. and Africa. Standard Bank views risk management as a key aspect of navigating geopolitical challenges, balancing potential risks with emerging opportunities in different regions. By strategically managing these dynamics, banks and investors can achieve success and further expand their business operations.