African Economic Outlook 2023: Opportunities Abound for Asian Investors in Africa, Experts | African Development Bank Group

Africa offers huge investment opportunities for Asian countries with the right incentives for their private sector, confirmed Prof. Kevin Urama, Chief Economist and Vice President of the African Development Bank Group.

Urama made the call during a webinar to launch the 2023 edition of the African economic outlook report. The African Development Bank co-hosted the session with the Korea Institute for International Economic Policy (KIEP) in Sejong-Si, Korea.

“I invite investors and governments in Asia to see Africa not as a distant land, but as a continent full of opportunity,” said Urama, vice president for economic governance and knowledge management.

He based his recommendations on the data in the latest edition of the African economic outlooka leading annual publication from the Bank Group that reviews the economies of the 54 African countries and provides detailed forecasts.

The report shows that Africa has remained broadly resilient despite significant shocks, notably from the Covid-19 pandemic, climate change and the Russian invasion of Ukraine. From economic growth of 3.8% in 2022, the continent is expected to rise to 4.1% in 2023 and 2024, surpassing the global average by 2.9% and the European average by 1.1%, according to the report, which estimates growth in Asia would be higher, at 4.3%.

Urama said: “Africa has a key role to play in the green transition as it is home to 60% of the world’s virgin arable land and the minerals needed for green growth.” He said these resources could boost sustainable development and investment. “This is virgin land, which could easily be used to build low-carbon infrastructure without large-scale expenditure.”

Edmond Wega, the banking group’s executive director for Canada, China, South Korea, Kuwait and Turkey, said Asian investors should look beyond unfavorable portrayals of Africa to 16 investment opportunities in Africa.

“Asia must use its technologies and knowledge to build a win-win relationship with Africa and work with its regions, countries and the African Development Bank to achieve convergence and turn dreams into reality,” he stated.

Sung-Chun Jung, Vice President of KIEP, highlighted Africa’s huge potential for green growth given its rapidly growing population and abundant renewable energy and natural resources.

“The international community should strongly support African countries’ efforts to combat climate change, particularly through financing, technology transfer and capacity building,” he said, adding that the private sector should play a greater role in closing the gap. funding gap to tackle climate change.

There was a roundtable discussion with Hong Miao, an energy expert and program director at the World Resources Institute in China; Sungbae An, director of the KIEP’s Department of Macroeconomics and International Finance; and Kohji Mitomori, director of the Office for Climate Change in the Global Environment Department of the Japanese International Cooperation Agency (JICA).

Munsu Kang, associate researcher at KIEP, moderated the discussion.

Ms. Hong Miao stressed that Chinese investors and companies are eager to cooperate with other countries under the umbrella of the Organization for Economic Co-operation and Development to invest in and commit to economic development in Africa, especially in green growth and renewable energy.

She stated: “There is already a large number of private Chinese investors in Africa, and the bilateral development banks also have a role to play, given the numerous innovative opportunities to connect with more private investors. Efforts must be made on both sides, in Asia and Africa.” Miao made the remarks after presenting a study on Chinese investors’ enthusiasm for Africa, particularly in the field of renewable energy.

Sungbae pointed to KIEP’s economic forecasts, which assume a 3.7% growth in sub-Saharan Africa in 2023. “One of the main issues we have identified is inflation, driven by the rise in food prices and staple goods, the pressures associated with rising exchange rates and political turmoil,” he said.

Kohji Mitomori said Japan will double its contribution to climate adaptation by 2030.

The event marks the fourth consecutive year that the African economic outlook report in Asia.

The African Development Bank Group has an external representative office for Asia in Japan.