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In this week’s edition of Africa Exchange – to get a better understanding of what is happening in the oil rich country, Rui Oliviera, CEO at BFA Asset Management in Angola joins CNBC Africa for more.

Rui Oliviera on performance of Kwanza in Angolan markets

LONDON, Dec 17 (Reuters) &#8211; Angola has recovered more than $5 billion stolen from state coffers so far this year, both at home and from abroad, Justice Minister Francisco Queiroz said on Monday, amid a two-year crackdown on corruption.



The money, including $3 billion stolen from the sovereign wealth fund, had been siphoned off by corruption and money-laundering, state news agency ANGOP quoted Queiroz as telling an international conference in Abu Dhabi.



Queiroz did not give specific details about how the money was stolen.



&#8220;We have argued insistently that these important resources should be returned unconditionally to the countries from which they were illegally withdrawn in order to be used to improve the quality of life of our populations,&#8221; Queiroz was quoted as saying, adding that some countries could do more to help.



An anti-corruption drive has accelerated in Africa&#8217;s second-biggest oil-exporting country since 2017, when Joao Lourenco became president, ending the nearly 40-year grip on power by Jose Eduardo dos Santos.



The government wants to erase the influence of the ex-first family, recover lost assets and privatise state firms.



After taking over, Lourenco fired Dos Santos’s son as head of the sovereign wealth fund and his daughter, Isabel, as chair of state oil company Sonangol.



The son, Jose Filomeno de Sousa, went on trial last week along with the head of the central bank accused of transferring $500 million in state funds to a London account.



The government said a business partner had returned over $3 billion allegedly stolen from the sovereign wealth fund.



Members of the Dos Santos family have denied wrongdoing. 



(Reporting By Noah Browning and Joice Alves; editing by Nick Macfie)

What you need to know about Angola retrieving more than $5 billion in stolen assets amid crackdown on graft

By: Mateus Magala, Vice-President of Corporate Services and Human Resources at the African Development Bank



Economic reforms, a burgeoning middle class and regional diversity against the background of the new African Continental Free Trade Area &#8211; are making Africa’s Portuguese-speaking countries a hotspot for investor interest. Additionally, new tools – such as the Development Finance Compact for Lusophone Africa – give investors and lenders more comfort to enter into these markets.



The six African countries called “PALOPs”, their
Portuguese acronym – Angola, Cabo Verde, Guinea-Bissau, Equatorial Guinea,
Mozambique and São Tomé e Principe – are very diverse. They range from
Equatorial Guinea, Africa’s richest country per capita, to lower income economies;
from Angola’s and Mozambique’s populations of over 30 million to Cabo Verde’s
and São Tomé’s, of less than one million; and from southeastern Africa to the
northwest of the continent.



These states also share important traits. They have a
common heritage and language. As independent states, they have fostered trade ties
with Portugal and Brazil, among others.&nbsp;
And, most importantly for our current consideration they have all
recognized that they must do more to unleash the potential of the private
sector in their countries.&nbsp; The private
sector here faces constraints, ranging from lack of affordable financing to
difficulties in project preparation. The good news is that the PALOP governments
are determined to tackle these issues – with the help of their partners, such
as the African Development Bank. 



In November 2017, Bank President Akinwumi Adesina
visited Lisbon for discussions on how Portugal and the Bank could work in a more
integrated manner. Out of this meeting emerged a vision for a new partnership,
one that is open to other partners: the Development Finance Compact for
Lusophone Africa.&nbsp; Signed at the November
2018 Africa Investment Forum, its goal is very simple: to accelerate the
diversified, sustainable and inclusive growth of the private sector in the six
PALOPs. And it is completely focused on transactions to deliver practical
results on the ground. 



How does the Lusophone Compact propose to do this? Put simply, it is
results-based and focused on two types of interventions: financing and risk
mitigation from the partners for specific private sector and public-private
sector partnership (PPP) investments in the PALOPs; and technical assistance
projects that enable the private sector or specific investments, such as project
preparation and access to finance. It is operationalized through
country-specific Compacts, with concrete targets, that have been signed for
each PALOP. 



For its part, Portugal
has made available €400 million in guarantees in 2019 to back Bank financing
for private sector and PPP projects in the PALOPs.&nbsp; And the Bank is contributing its own
financing as well as resources for the administration of the Lusophone
Compact.&nbsp; Additionally, it is important
to stress that the PALOPs themselves are equal partners in this initiative:
they have a responsibility to work on enabling the private sector investments
in their countries, and the Compact also seeks to leverage intra-PALOP
investments and sharing of best practices.&nbsp;
Finally, we are encouraged that other states and development finance
providers want to join or partner with the Lusophone Compact.



This brings me back to
the initial point: now is the time to invest in Lusophone Africa. 



Angola and Equatorial
Guinea have both embarked on ambitious programs to diversify their economies
away from natural resources. Mozambique, which is beginning to receive massive
investments related to the natural gas sector, also recognizes the need to grow
sectors like agribusiness and industry, to increase employment.&nbsp; Cabo Verde, already a middle-income country,
is seeking to diversify its economy too – attracting new types of tourists
while also growing its fishing and agribusiness sectors. São Tomé e Principe
and Guinea-Bissau, members of the Alliance of Small Island States, seek
sustainable investments that both promote growth and deal with their exposure
to climate change, including through the so-called “blue economy”.&nbsp; &nbsp;



All of these countries
are determined to increase trade, both among themselves and within their
regions, which include Africa’s largest economies. 



That is why the PALOP’s
are eyeing the 2019 Africa Investment Forum – the unique investment marketplace
for regional investments, pioneered by the African Development Bank last year.



A specific panel on Investing
in Lusophone Africa at this year’s Forum will shine the spotlight on these
opportunities. And, just as last year, numerous Board Room sessions will
involve projects in the PALOPs – including at least four that are eligible
under the Lusophone Compact. 



The African Development Bank is proud to be part of
this new dawn for the continent’s Portuguese-speaking economies. And we invite
you to join us.

Op-Ed: It’s time to invest in Portuguese-speaking African countries, here’s why

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A new booked launched in Joburg this week, it promises to take the readers back into the dark days of struggle in Southern Africa. It&#8217;s written by a judge in the supreme court of Namibia, David Smuts, and is a memoir of his battle as a young lawyer in the 1980s to speak truth to power during the desperate days of the country’s border war with Angola. He spoke to CNBC Africa’s Chris Bishop.

How a young Windhoek lawyer felt compelled to take on the system

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Last week the presidents of Rwanda and Uganda signed a MoU in Angola to restore relations between the two countries. A week later, have we seen progress? Has trade resumed? To discuss this and other regional headlines this week, Analyst and Chief Strategist at Impact Communications Strategies, Ken Agutamba joins CNBC Africa for more.

Rwanda, Uganda MoU: Has progress been made thus far?

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There has been numerous headlines coming out of the country this week. The Presidents of Rwanda and Uganda on Wednesday signed an agreement in Angola to restore relations between the two neighbouring countries. Rwanda Development Board (RDB) released tourism statistics and the Monetary Policy Statement was released by the Central Bank of Rwanda. Journalist of The Newtimes, Collins Mwai joins CNBC Africa for more.

Rwanda-Uganda relations: How are they affecting Monetary Policy and markets in Rwanda?

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The Presidents of Rwanda and Uganda on Wednesday signed an agreement in Angola to restore relations between the two neighbouring countries. To dive deeper into this matter, Researcher and political Analyst, Gatete Nyiringabo joins CNBC Africa for more.

Rwanda and Uganda sign MoU to restore relations: How beneficial will this agreement be?

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Rwanda and Ugandan leaders over the weekend met in the Angolan capital, Luanda as the host country and the Democratic Republic of Congo&#8217;s leaders tried to mediate between the two East African Community neighbours. President Paul Kagame of Rwanda and President Yoweri Museveni of Uganda met at a Regional Security Summit recently hosted by Angolan President Joao Manuel Lourenco and Democratic Republic of Congo (DRC) leader Felix Tshisekedi. Researcher and analyst, Dr. Frederick Golooba-Mutebi joins CNBC Africa for more.

DRC, Angola to meditate Uganda-Rwanda dialogue

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The Mozambican former finance minister loan saga is unfolding in domestic and international courts. Now there has been growing concerns of the involvement of a senior Angolan political leader in the scandal. This could be trouble for Angola as this risks the relationship with the IMF and the prospect for economic recovery this year. Robert Besseling, Executive Director of EXX Africa joins CNBC Africa for more.

Mozambique’s debt scandal spills over into Angola

Harini V
Source: <a href="https://www.cnbc.com/2018/10/12/africa-faces-challenges-but-is-on-the-path-to-greater-resilience-ceo-.html">Africa faces challenges but is on the path to greater resilience: CEO</a>
<ul>
<li>Despite being hit by external headwinds, Africa is on the path to becoming more resilient with infrastructure projects and sound government policies in place, the president and CEO of a development finance institution told CNBC Thursday.</li>
<li>&#8220;South Africa, Nigeria, Angola have dragged the continent behind,&#8221; said Samaila Zubairu president and CEO of Africa Finance Corporation.</li>
</ul>
Even though countries in Africa have been hit by external headwinds, the continent is well on the path to becoming more resilient with infrastructure projects and sound government policies in place, said the president and CEO of a development finance institution on Thursday.
&#8220;South Africa, Nigeria, Angola have dragged the continent behind,&#8221; Samaila Zubairu, president and CEO of Africa Finance Corporation (AFC), told CNBC at the International Monetary Fund and World Bank meetings in Bali, Indonesia.

Those three economies — the largest in Africa — have performed below expectations, according to the IMF which said the continent as a whole would stand to benefit if the three countries were performing up to their potential.
The larger economies in Africa are &#8220;heavily dependent on commodity prices&#8221; and face more serious challenges compared to smaller countries such as Rwanda, Ethiopia, Kenya, Ghana and Tanzania that have fared better in terms of growth, Zubairu added.
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/10/12070227/105500770-1539253589126gettyimages-909184932.1910x1000.jpeg" alt="Pre-WEF breakfast briefing ahead of Davos" height="1000" width="1910" data-licensor-name="Moeletsi Mabe| Sunday Times | Gallo Images | Getty Images"/>
Another challenge Africa faces is rising United States interest rates which affect the level of investments in businesses, he said.
However, as African governments increase spending in infrastructure, agriculture and move away from being overly import-dependent, the outlook for growth is positive, Zubairu added.
&#8220;The continent itself has resilience now. You know with the adjustment by governments away from, I would say, import dependent growth,&#8221; Zubairu explained. &#8220;There is a lot of emphasis on driving agricultural spending. There&#8217;s a lot of investment in infrastructure, all of which would &#8230; accelerate the shared growth in the continent.&#8221;

China&#8217;s 300 million funding to AFC
&#8220;Infrastructure spending &#8230; I think is one of the things that are required to lift the continent,&#8221; Zubairu said.
AFC has reportedly acquired a $300 million loan facility from a Chinese state-funded and state-owned policy bank, the Export-Import Bank of China, for development projects in the continent.
 Some experts have raised questions about whether Chinese investments in Africa come with 
strings attached 
.
Zubairu said that the $300 million investment does not mean that AFC has to buy more Chinese exports in return.
However, he added: &#8220;There are certain projects that &#8230; can be tied to Chinese export(s) and we would consider those. But the one we have for now is &#8230; not tied to a specific Chinese export(s),&#8221; he said.

Africa faces challenges but is on the path to greater resilience: CEO

Harini V
Source: <a href="https://www.cnbc.com/2018/10/12/africa-faces-challenges-but-is-on-the-path-to-greater-resilience-ceo-.html">Africa faces challenges but is on the path to greater resilience: CEO</a>
<ul>
<li>Despite being hit by external headwinds, Africa is on the path to becoming more resilient with infrastructure projects and sound government policies in place, the president and CEO of a development finance institution told CNBC Thursday.</li>
<li>&#8220;South Africa, Nigeria, Angola have dragged the continent behind,&#8221; said Samaila Zubairu president and CEO of Africa Finance Corporation.</li>
</ul>
Even though countries in Africa have been hit by external headwinds, the continent is well on the path to becoming more resilient with infrastructure projects and sound government policies in place, said the president and CEO of a development finance institution on Thursday.
&#8220;South Africa, Nigeria, Angola have dragged the continent behind,&#8221; Samaila Zubairu, president and CEO of Africa Finance Corporation (AFC), told CNBC at the International Monetary Fund and World Bank meetings in Bali, Indonesia.

Those three economies — the largest in Africa — have performed below expectations, according to the IMF which said the continent as a whole would stand to benefit if the three countries were performing up to their potential.
The larger economies in Africa are &#8220;heavily dependent on commodity prices&#8221; and face more serious challenges compared to smaller countries such as Rwanda, Ethiopia, Kenya, Ghana and Tanzania that have fared better in terms of growth, Zubairu added.
<img loading="lazy" decoding="async" src="http://cnbc.africa/wp-content/uploads/2018/10/105500770-1539253589126gettyimages-909184932.1910x1000.jpeg" alt="Pre-WEF breakfast briefing ahead of Davos" height="1000" width="1910" data-licensor-name="Moeletsi Mabe| Sunday Times | Gallo Images | Getty Images"/>
Another challenge Africa faces is rising United States interest rates which affect the level of investments in businesses, he said.
However, as African governments increase spending in infrastructure, agriculture and move away from being overly import-dependent, the outlook for growth is positive, Zubairu added.
&#8220;The continent itself has resilience now. You know with the adjustment by governments away from, I would say, import dependent growth,&#8221; Zubairu explained. &#8220;There is a lot of emphasis on driving agricultural spending. There&#8217;s a lot of investment in infrastructure, all of which would &#8230; accelerate the shared growth in the continent.&#8221;

China&#8217;s 300 million funding to AFC
&#8220;Infrastructure spending &#8230; I think is one of the things that are required to lift the continent,&#8221; Zubairu said.
AFC has reportedly acquired a $300 million loan facility from a Chinese state-funded and state-owned policy bank, the Export-Import Bank of China, for development projects in the continent.
 Some experts have raised questions about whether Chinese investments in Africa come with 
strings attached 
.
Zubairu said that the $300 million investment does not mean that AFC has to buy more Chinese exports in return.
However, he added: &#8220;There are certain projects that &#8230; can be tied to Chinese export(s) and we would consider those. But the one we have for now is &#8230; not tied to a specific Chinese export(s),&#8221; he said.

LUANDA (Reuters) &#8211; Angola has secured $2 billion in Chinese financing from the China Development Bank for infrastructure projects on President João Lourenço’s first visit to Beijing, Angola’s state newspaper Jornal de Angola reported on Wednesday.
Details of the terms of the financing were not released. The finance ministry did not immediately respond to a request to confirm the information.
China is increasingly flexing its financial muscle in Africa, funding massive infrastructure projects across the continent.
Angola, Africa’s second largest oil producer, is in the process of trying to diversify its economy since a fall in the price of crude in 2014 plunged it into recession. Inflation is running at more than 20 percent per year and at least one in five of workers are jobless.
Lourenço, who took power a year ago after the 38-year rule of Jose Eduardo dos Santos, has promised to oversee an “economic miracle” by opening up the country to foreign investment and prioritising sectors such as agriculture and tourism. So far growth has remained sluggish.
Investors are increasingly concerned by Angola’s growing debt burden, which the government said earlier this year will rise to $77.3 billion, or 70.8 percent of GDP, by the end of 2018. Of that, around $21.5 billion was already owed to China before Lourenço’s visit there.
Reporting by Stephen Eisenhammer; Editing by Ed Stoddard and Peter Graff

What you need to know about Angola securing a $2 billion infrastructure financing from China

By World Bank 
WASHINGTON, October 3, 2018 — Sub-Saharan African economies are still recovering from the slowdown in 2015-16, but growth is slower than expected, according to the October 2018 issue of <a href="http://cnbc.africa/wp-content/uploads/2018/10/WB_AfricasPulse_Fall2018_vol18_Web.pdf">Africa’s Pulse, the bi-annual analysis of the state of African economies by the World Bank</a>. The average growth rate in the region is estimated at 2.7 percent in 2018, which represents a slight increase from 2.3 percent in 2017.
“The region’s economic recovery is in progress but at a slower pace than expected,” said Albert Zeufack, World Bank Chief Economist for Africa. “To accelerate and sustain an inclusive growth momentum, policy makers must continue to focus on investments that foster human capital, reduce resource misallocation and boost productivity. Policymakers in the region must equip themselves to manage new risks arising from changes in the composition of capital flows and debt.”
Slow growth is partially a reflection of a less favorable external environment for the region. Global trade and industrial activity lost momentum, as metals and agricultural prices fell due to concerns about trade tariffs and weakening demand prospects. While oil prices are likely to be on an upward trend into 2019, metals prices may remain subdued amid muted demand, particularly in China. Financial market pressures intensified in some emerging markets and concern about their dollar-denominated debt has risen amid a stronger US dollar.
The slower pace of the recovery in Sub-Saharan Africa (0.4 percentage points lower than the April forecast) is explained by the sluggish expansion in the region’s three largest economies, Nigeria, Angola, and South Africa. Lower oil production in Angola and Nigeria offset higher oil prices, and in South Africa, weak household consumption growth was compounded by a contraction in agriculture.  Growth in the region &#8211; excluding Angola, Nigeria and South Africa &#8211;  was steady. Several oil exporters in Central Africa were helped by higher oil prices and an increase in oil production. Economic activity remained solid in the fast-growing non-resource-rich countries, such as Côte d’Ivoire, Kenya, and Rwanda, supported by agricultural production and services on the production side, and household consumption and public investment on the demand side.
Public debt remained high and continues to rise in some countries. Vulnerability to weaker currencies and rising interest rates associated with the changing composition of debt may put the region’s public debt sustainability further at risk. Other domestic risks include fiscal slippage, conflicts, and weather shocks. Consequently, policies and reforms are needed that can strengthen resilience to risks and raise medium-term potential growth.
This issue of Africa’s Pulse highlights sub-Saharan Africa’s lower labor productivity and potentials for improvement “Reforms should include policies which encourage investments in non-resource sectors, generate jobs and improve the efficiency of firms and workers,” said Cesar Calderon, Lead Economist and Lead author of the report.

Sub-Saharan Africa is not growing as fast as expected, here’s why

JOHANNESBURG, Aug 21 (Reuters) &#8211; The International Monetary Fund (IMF) said on Tuesday it would begin talks with Angola over providing financial support after the oil producing country’s economic growth was weaker than expected this year.
Africa’s second-largest oil producer has been hit by lower oil prices, which have caused a dollar liquidity squeeze that has made it difficult for foreign companies to repatriate profits and discouraged many from investing.
Angola’s Finance Ministry said on Monday it had sought financial support from the IMF but did not provide further detail on how much money was involved.
“We expect to initiate programme discussions with the Angolan authorities as soon as feasible,” Deputy Managing Director of the IMF Tao Zhang said in a statement which confirmed the Fund had received a letter from the Angolan authorities to start talks.
<div>
<div class="DPSlot_container StandardArticleBody_dp-slot-inline" data-ad-type="other">
<div id="dpslot_canvas_6827759_AFL8N1VC4QA" class="DPSlot_ad-container" data-google-query-id="CPH07b6_gN0CFcKD7Qod-EIGHg">The request came after the IMF was invited to Luanda in October to negotiate the programme, which would last for two years and then be extendable for one more.</div>
</div>
</div>
“The IMF stands ready to help the authorities address Angola’s economic challenges by supporting their economic policies and reforms based on the government’s macroeconomic stabilisation programme and in the national development plan for 2018–22,” Zhang said.
Angola’s economy has struggled due to lower oil prices, a situation made worse by declining production. Output is expected to fall to 1.5 million barrels per day in 2018, down from 1.6 million last year and 1.9 million a decade ago.
The IMF expects the country’s economy to grow 2.2 percent this year, well below an original government forecast of 4.9 percent.
President João Lourenço, who took over last September after 38 years of rule by José Eduardo dos Santos, has said he wants to bring about an economic miracle in Angola by opening up to foreign investment and diversifying away from oil. (Reporting by Tanisha Heiberg. Editing by Jane Merriman)

Angola talks for IMF funding to begin

By Zandre Campos, Chairman and CEO of ABO Capital
Angola has the potential to become a major exporter, as the country has seen fairly stable intercontinental and global trade growth in the past 20 years. Africa’s top trade partners have included China, the United States, and the European Union, but with variables like politics, pricing, and availability of resources, Angola must continue to allocate the time and funds needed to keep up with supply and demand of its current exports, and start expanding into new sectors.
Africa’s dominant sources of revenue are oil and metal, which account for approximately 90 percent of the continent’s total exports. Angola is one of the few African countries that relies almost solely on these two commodities as its main exports, but the country is taking great steps to invest resources in opportunities with high manufacturing intensity, like food production. According to the <a href="https://read.oecd-ilibrary.org/development/african-economic-outlook-2017_aeo-2017-en#page1">2017 African Economic Outlook report</a>, agriculture provided jobs for more than 60 percent of Africa’s workforce, but accounted for less than a quarter of total exports.
Technological advancements, from motorized equipment to biotechnology like seed modification, have widely contributed to the worldwide growth of agriculture. However, Africa’s farming and processing capabilities are still underdeveloped, and this may be due to the continent’s low import percentage of heavy machinery and transport equipment, as well as climate change patterns. Organizations like ETG, one of the fastest growing integrated agricultural supply chain groups, and a venture that I currently support, are working to ensure the rapid growth of procurement, processing and manufacturing of finished goods, and product distribution through machinery, irrigation, warehousing, and transportation methods. Advancements in computers and the Internet also facilitate trade deals among long-distance business partners.
While technology is critical to the continued development of agricultural commodities, it’s important to note that factors like trade policy, infrastructure, and education impact Angola as an exporter. The African Continental Free Trade Area (AfCFTA), for example, is said to boost African economies by harmonizing intercontinental trade liberalization, removing tariffs on 90 percent of goods once the policy is in effect, and establish free movement of business people and investments. Through the AfCTFA, Africa will see more trade liberalization and enhanced competition with more opportunities with high manufacturing intensity. Technology will be a key driver in maintaining production and ultimately competition.
On the infrastructure side, roads, vessels and flight paths should be readily available in order to move a high volume of product across the border. Fortunately, according to the African Development Bank, the Angolan government had previously committed to allocating nearly $5.5 billion to finance private sector projects in areas with high export potential, like food and agriculture. This includes electricity projects, construction of a new international airport in Angola’s capital Luanda, and a new commercial port north of Luanda. Lastly, farmers, warehouse workers, transportation staff and others closely involved in the supply chain might require additional technical training when there are changes or advancements in equipment.
By investing resources in agricultural and technology, along with the proper infrastructure and education, Angola can become a major exporter in oil, metal and food, fostering healthy economic development in the country, and in Africa as a whole.

Op-Ed: Angola has the potential to become a major exporter, this is what it needs to do

By Hendrik du Toit is co-CEO of Investec Group
I remember a time, over 20 years ago now, when virtually no professionally-managed capital moved across borders in Africa.  When aid and corruption drove the investment narrative. When Africa was called the “<a href="https://www.economist.com/node/333437">hopeless continent</a>”. When sustainability wasn’t even part of an investor’s vocabulary. We’ve come a long way.
The millennium heralded rapid growth across the African continent. At around 3%, default rates on African infrastructure are some of the lowest in the world.  Africa has the fastest growing population and is seeing a wave of innovation and entrepreneurship sweeping across the continent. The latter is strongly enabled by mobile phone technology which has directly facilitated a financing revolution. Off-grid solar panel installations have proliferated, purchased via monthly payments made on cell phones, through companies like <a href="http://plugintheworld.com/">Mobisol</a> and <a href="http://www.m-kopa.com/">M-Kopa</a>.
Of course, global and domestic events, including the 2014 oil-price shock hit major economies especially hard; we’ve seen recent declines in performance in Angola, Nigeria, and my home country of South Africa.  But overall, African economies have been resilient and the continent’s long-term growth story – particularly green growth – remains compelling.
Billions of dollars have been invested in renewable energy across the continent. Late last year, <a href="https://www.ft.com/content/01870140-3364-11e8-ac48-10c6fdc22f03">Nigeria issued a N10.69 billion (US$29 million) green bond</a> to fund local solar and forestry projects.  This is Africa’s first sovereign green bond – one of only a handful in the world (alongside China, France, Poland, Fiji and Indonesia). Kenya will soon follow.
The <a href="https://openknowledge.worldbank.org/bitstream/handle/10986/28932/9781464811630.pdf">World Bank</a> also estimates that aggregate growth in Sub-Saharan Africa for 2018 will be around 3.2%, up from 2.4% last year. The continent is expected to host six of the 10-fastest growing economies of the world in 2018, while traditional assets under management (including pension and mutual funds) are forecast to grow to around US$1.1 trillion by 2020, up from US$634billion in 2014.
In short, Africa is very much “open for business”, particularly for investors who are chasing yield and diversification. China’s got the message, committing to US$60 billion in new investment in major capital projects across Africa.  Indeed, China has been an integral part of Africa’s rejuvenation by becoming Africa’s largest export destination, its largest source of imports and more recently its largest source capital, both equity and debt.
These are positive signals, but a lot more capital is still needed, particularly from large institutional investors.  Estimates put the <a href="http://www.ey.com/gl/en/industries/government---public-sector/dynamics---collaborating-for-growth_addressing-africas-infrastructure-deficit">African infrastructure deficit at around US$90 billion</a> every year for the next decade.  Across the continent, 620 million people still don’t have electricity; 319 million people are living without access to reliable drinking water; and only 34% have road access.
There are a few things which can help. Firstly, “blending” public and private capital can improve an asset’s risk-return profile, so vehicles which use development money to mitigate investor risks can attract much needed commercial investment.  Some of these vehicles – like <a href="https://www.tcxfund.com/">The Currency Exchange</a>, which offers FX hedging in emerging markets – have successfully mobilised billions of dollars of private money for African projects.
Another example is the <a href="http://www.eaif.com/">Emerging Africa Infrastructure Fund</a> (EAIF) with projects ranging from water supply in Rwanda to solar power in Uganda.  The EAIF is part of the Private Infrastructure Development Group (with equity from governments including the UK, Sweden, Germany and the Netherlands) and recently announced that it had <a href="https://www.ft.com/content/8363cb78-3bf0-11e8-b9f9-de94fa33a81e">attracted its first commercial lender in global insurer Allianz</a>, as part of a $385 million fund-raising round.  This investment signals a shift in appetite for African risk from institutional investors. These vehicles need to be scaled and replicated.
Secondly, to attract investment for high-impact assets like climate-resilient, sustainable infrastructure, development banks need to be more effective at crowding in private capital using instruments like political risk insurance and guarantees, not crowding them out. At best, the <a href="https://www.blendedfinance.earth/better-finance-better-world/">multilateral development banks (MDBs) mobilise less than $1 of private capital for every public dollar across their portfolios</a>.  They should target much higher mobilisation ratios and sharply increase their share of private sector activities (which currently only account for around 30% of MDB activities).
Thirdly, frontier countries must compete for investor dollars by making it easier for the private sector to do business.  This requires strong, political leadership, depth in local capital markets, the right legal framework and transparent policies.  In particular, local policies should support regional simplicity to facilitate cross-border operations that can generate scale.  For example, a very important, but much-overlooked regulatory amendment recently saw the amount that <a href="http://www.internationalinvestment.net/regions/africa/changes-s-africas-regulation-28-welcomed-asset-managers/">South African retirement funds could invest into the rest of Africa increase from 5% to 10%</a>. It’s only when public markets are deep enough for strong exits that we’ll see bigger and bigger deals happening.
Most importantly, if we really want to see sustainable growth and the associated economic and financial returns, the investment community needs to lead.  We need to take a leaf out of China’s book, embracing African infrastructure as an investment opportunity, taking advantage of risk mitigation tools and addressing the huge gap in risk perception between emerging and developed markets. We can also use our investing power to drive value for shareholders while prioritising “green”, sustainable development (e.g. through initiatives like <a href="http://www.climateaction100.org/">Climate Action 100+</a>).
This is all part of how we move away from an “aid-based” narrative to one of business and investment.  It is also how we can provide the platform for economic inclusion of the world’s most youthful and fastest growing labour force.  I dream of a future shaped by bold and wise investment decisions.

Op-Ed: Why the world should follow China and invest in Africa’s future

LUANDA, May 16 (Reuters) &#8211; Angola’s sovereign wealth fund has applied to a UK court to order banks to reveal information, another move in its dispute with its former boss, the son of long-serving ex-leader Jose Eduardo dos Santos, and the asset managers hired under him.
President Joao Lourenco, who took over when dos Santos stepped down last year after nearly 40 years in power, has swiftly moved to push aside relatives and allies of dos Santos from positions of power and influence over the economy.
READ: <a href="http://cnbc.africa/news/southern-africa/2018/05/11/angola-telling-investors-get-invest-eurobonds/">This is what Angola is telling investors to get them to invest in its Eurobonds</a>
The $5 billion sovereign wealth fund has been embroiled in a dispute with its former boss, the ex-president’s son Jose Filomeno dos Santos, and the Swiss-based asset manager contracted to invest money for the fund, Quantum Global.
READ: <a title="In search of an ‘economic miracle’ Angola taps into the IMF" href="http://cnbc.africa/news/southern-africa/2018/04/18/angola-taps-imf/" rel="bookmark">In search of an ‘economic miracle’ Angola taps into the IMF</a>
The fund is trying to sack the fund manager, accusing it of mismanagement. Quantum Global denies wrongdoing and says the fund has violated its long-term contractual obligations.
A source directly familiar with the matter told Reuters the sovereign wealth fund had sought a so-called “Norwich Pharmacal order” to oblige banks to share information with the fund, including data about any accounts held in its name or on its behalf.
Such orders, named for a legal case from the 1970s, can be used in British court to force third parties to reveal information.
A hearing was held earlier this month at the Rolls Building, a tribunal in London which deals with international disputes, a separate source said.

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