By Nishika Bajaj and Shruti Menon Seeboo
With Mauritius hosting the third edition of the Africa Partnership Conference (APC) over 02 October and 03 October at the InterContinental Resort, Balaclava Fort, the opening ceremony paid tribute to the thought-provoking theme of “Unity in Partnership: Enabling Sustainable & Inclusive Investment.” It encapsulated the island economy’s firm conviction in the transformative power of collective action and resonated with the conference’s objective to catalyse cross-boundary collaboration and harmonious interactions among a diverse array of stakeholders.
The APC is the flagship event organised by the Economic Development Board (EDB) of Mauritius, in collaboration with the Ministry of Finance, Economic Planning & Development, for connecting project promoters from Africa with venture capitalists to encourage collaboration between fund managers, institutional investors, and entrepreneurs to drive growth in Africa. As such, the APC will witness 100+ organisations and CEOs, 48 speakers and over 400 attendees hold forth at the conference over these two days.
Unfolding both in-venue and online, this hybrid event promises to bring the best of Mauritius and Africa to the fore, with an emphasis on unity as the keystone of sustainable action and shared commitments that chart a clear course for nurturing strategic partnerships. These partnerships, in turn, will serve as the driving force behind Africa’s journey towards an inclusive future defined by sustainable growth, innovation, and collective prosperity.
The opening ceremony kicked off with an address by CNBC’s Tania Habimana, who noted that: “On a day-by-day basis, I cover financial markets, the economy, business at large and everything that touches economic growth in Africa. This year’s theme is very much something I am interested in. The theme here reflects Mauritius and the wider continent’s unwavering belief in the power of collaboration to transform our continent. With the aim to foster cross-boundary cooperation among wider stakeholders emphasising sustainable progress, over the next two days, we will have dialogue, practical examples, sign MoUs, and take tangible action towards forging strategic alliances to propel Africa towards an inclusive future characterised by sustainable growth, innovation and prosperity.” She thanked the sponsors and noted that a pioneer and champion of the agenda towards sustainable growth and development in Africa would take over the stage.
This took the form of EDB Chairman Mr. Hemraj Ramnial, whose welcome address highlighted that the audience was gathered on the occasion of the birth anniversary of Mahatma Gandhi, the apostle of peace and nonviolence. “The theme of our conference focuses on consolidating for driving economic prosperity in the African continent. Mahatma Gandhi remains a global icon of peace and a gift to humanity. His vision, resting on the principles of peace, love and integrity, was far reaching to encompass human rights and sustainable development. We are constantly reminded of the core values Gandhi championed – truth, nonviolence, tolerance and justice. These teachings and principles resonate strongly with Africa’s quest for unity, diversity, and inclusivity. The Africa Partnership Conference has the opportunity for setting strategy to reinvigorate growth and set the continent on the path a strong, sustainable, inclusive development. This will be an essential economic transformation to uplift the lives of all African citizens and the well being of the wider world. We have today over 153 delegates composed of investment professionals and over 25 Investment Promotion Agencies (IPAs). For a prosperous Africa, we stand at a pivotal moment in its history. With a population of over 1.3 billion people, the continents possesses immense potential for growth and development. However, harnessing this opportunity requires concerted efforts and strategic partnerships that transcend borders. It is through events like this that we can collectively address investment and trade related challenges facing Africa and seize the opportunities that lie ahead. The EDB has long recognised the importance of Africa as a key partner in our quest for sustainable economic growth. We firmly believe that by collaborating and creating synergy you can unlock new avenues of prosperity for our nations. Our commitment is not limited to business relationships only. It is about forging strong, long-lasting partnerships that promote inclusive growth and benefit all stakeholders. Intra African trade is only 17% of total African trade, and increasing intra Africa trade is therefore critical because it could become a strong driver of accelerated growth, for building sustainable economic development and integration. The EDB Mauritius has identified key sectors where we can collaborate and add value. We can create sustainable ecosystems that drive economic growth, create jobs, and uplift communities across the continent. Furthermore, we recognise the importance of human capital development by investing in education, skills, training, and others. The challenges we face are significant, but so too are the opportunities. As we navigate the complexities of a post pandemic world, we must embrace digital transformation to promote sustainable development and foster an inclusive and equitable environment. It is imperative that we leverage technology and innovation to drive efficiency, enhance productivity and create new avenues for growth. We must also embrace sustainable business practices that preserve our environment and ensure the well being of future generations. Hence, ESG and sustainability will be key topics during the APC. Let us seize this opportunity to build bridges, break down barriers and create a future where Africa shines as a beacon of progress and prosperity. The AfCFTA presents a unique opportunity by increasing inter African trade, enhancing market access and promoting economic integration by removing trade barriers and facilitating the movement of goods and services and people that can unlock the full potential on the African continent and create a vibrant and dynamic marketplace as we embark on this journey. The African economies have been undergoing a profound structural shift services over the past 10 years, which have created significant opportunities for African countries. Let us work together to realise a dream Mahatma Gandhi and Nelson Mandela had of a peaceful and prosperous Africa.“
Next, Mr. Saviour Chibiya, Chief Executive, Absa Regional Operations, Absa Group, unfolded that: “This event carries a significant theme for us – ‘Unity in Partnerships – Enabling sustainable and inclusive investment’. As we gather here, we all recognise the importance of collaboration and cooperation in fostering an environment that promotes sustainable and inclusive growth for all. At Absa, we firmly believe that unity and partnerships are cornerstones of progress. In pursuit of Africa’s prosperity, it is crucial we work together across all sectors, bridging the gap between public and private entities. It is through this collaboration that we can realise the true potential of our economies, to create a lasting impact in Africa. This theme resonates deeply with our values and purpose (‘Empowering Africa’s tomorrow, together, one story at a time’) as a financial institution. We are committed to drive sustainable investment not only for the betterment of our clients and stakeholders, but also for the betterment of society and continent as a whole. At Absa, we understand that true progress can only be achieved when we prioritise sustainability, social responsibility and inclusivity. As a pan-African bank, we have made significant strides in inclusive banking practices ensuring that we empower individuals as well as businesses of all sizes to thrive, and contribute to the economy. With true partnerships, we have been able to make a tangible difference. However, we recognise that much still needs to be done. The needs of the continent are truly immense and we must continue to collaborate and find innovative solutions to these challenges. Africa is endowed with natural resources and is a deeply rich continent, but we are also plagued with poverty, inequity and climate change crisis. We need to invest in upskilling our youth and we need more digital and physical infrastructure for this continent to prosper. Hence this conference provides us with the opportunity to explore new avenues of cooperation, forge new partnerships and deepen existing ones and collectively charter a path for an inclusive and sustainable future. By working hand in hand, we can ensure a future where sustainable investments become the norm rather than an exception.“
He was followed by the UK Prime Minister’s Trade Envoy to Mauritius, the Honourable Andrew Selous, MP, who pointed out that: “I had the honour to serve as the United Kingdom Prime Minister Rishi Sunak’s Trade Envoy to Mauritius, and in April this year it was a great honour to sign a strategic trade partnership with Mauritius, which is a very important market for the United Kingdom, as our sixth largest market in Africa. The United Kingdom regards Africa as a global engine of economic growth. Over 20% of the world’s population in 2050 will be African, half under 25. And if they have the appropriate skills, that gives Africa an incredible advantage in the global economy, and we also know that sub–Saharan African economies are set to grow over and above the global average of advanced economies in the next two years. So, the opportunities and the potential in Africa for business is absolutely enormous. That is being exemplified already in the area of renewables and many of the resources which the world will need are in Africa.” He noted his concern that in the City of London, which has $9.4 trillion of assets under management, less than 1% of those funds are invested in Africa, stating that this is not Africa’s loss but a problem for UK that is missing out on huge opportunities for UK investors to take advantage of the potential of African economies that it wants to partner with.
“And I think as we look at the challenges which we’ve heard referred to already this morning, the truth is that very few governments around the world have the tax raising and borrowing capacity to do everything that they need to do. That is why partnerships with other countries through trade and investment, with businesses, with development finance institutions, with organisations like the United Kingdom Export Finance (UKEF), and using the fantastic work of the AfCFTA are so important for our future to achieve all of this potential. So, what is the United Kingdom’s current footprint in Africa? Well, according to the United Nations Conference on Trade and Development, the United Kingdom is the largest holder of foreign assets in Africa at $65 billion in 2023. And our trade with Africa is growing – it’s 45 billion pounds a year until the end of the first quarter of this year. And that has grown by a quarter in the 12 previous months. And we have a fantastic department of business and trade presents in all of our embassies and high commissions across Africa.” He noted that, in January 2020, the United Kingdom hosted the Africa Investment Summit and two years later, a virtual African Investment Summit was held in 2022. “And I’m delighted to say that in on the 23rd and 24th of April 2024, Prime Minister Rishi Sunak will be personally hosting the Africa Investment Summit in London where I know that Prime Minister Jugnauth and many other heads of state have been invited and we look forward to welcoming all those distinguished leaders to London to do even more business together. Also, we will hold the AFSIC conference in London, at which I will have the pleasure of hosting Minister Seeruttun next week.“
On sustainability, he noted that the UK has decarbonised faster than any other G7 economy and has a nationally determined contribution of 68% by 2030. “That journey for the United Kingdom has given us deep expertise in hydrogen and offshore wind and nuclear small modular reactors and other important renewables industries. The United Kingdom tries very hard to be a good global player. We have committed 11.6 billion pounds to the Global Climate Fund, 1.6 billion pounds of that was given out to the G20 in India by Prime Minister Sunak last month. We believe in reforming that architecture globally and we are committed to globally resilient food system as a really important issue, given what is happening in Ukraine. Our development finance institution, British International Investment, will be spending up to 2 billion pounds every year between now and 2026 in its clean green initiative in Africa, the Caribbean, and Asia. So, to conclude, I would say that while the United Kingdom may not always have the deepest pockets, we offer you a deep pool of expertise skills, research capacity, project management capability, along with a commitment to the shared global agendas, the rule of law, transparency, decency, and a commitment to trade and investment working for both of us or not working at all. We have strong cultural links with many African nations through sports (the Premier League), through art, or through music and we have a very well-established African diaspora across the United Kingdom, which will give you a warm welcome.”
A special address by Mr. Sanjeev Sanyal, Member of the Economic Advisory Council of India (EAC-PM), served to highlight that: “As you’re all aware, we are going through a particular turn in world history. These are difficult times in multiple ways – the world economy is coming out of the covid crisis, geopolitical churn is going on and the architecture of the world is getting unglued. In this age of turmoil – India has continued to grow strong, this year at 7%. If the world economy looks better, we will be able to sustain growth rates of 8%.” He noted that those visiting India will be able to see this clearly, and remarked that the largest concentration of trains in the world is in Mumbai. This growth story is echoed across India, he highlighted, with a recent instance of 100 kms of new highway being constructed in 100 hours as an example of real heavy investment on a truly global scale. As a result, he expressed the confidence that India might soon surpass Germany and eventually Japan to become the world’s third largest economy in GDP USD terms, while cautioning that India will still be quite a poor country in per capita terms.
“We will need to sustain this growth over 25 years of Amrit kaal to become a developed country. This is our 75th year of independence and by our 100th year of independence, we will be a developed country if we sustain such growth over a generation. This long journey will be very lonely if we go it alone, so we want like-minded friends and who better than Africa which shares our concerns and aspirations, Mauritius is a part of both these regional growth stories – be it Africa or the Indian ocean. Just a few weeks ago, under the Presidentship of the G20, we worked hard and succeeded in including the African Union (AU) as part of G20 so it is G21 now. But it has to be about more than just trade, commerce and investment. It must be about building a new narrative for the new world that is emerging,” he emphasised. On this note, he mentioned that for the dawn of a century that belongs to Indo-Pacific and the South-South, it is important to rethink rules of engagement that are almost exclusively made by the North Atlantic. For instance, he remarked that the cost of capital is driven by sovereign ratings done by North Atlantic agencies, be it S&P, Moody’s or Fitch. The new ESG norms being rolled out will eventually end up affecting commerce, trade, finance, everything. Yet there is no agreed global norm, while the EU is set to define it by leveraging research from global think tanks and NGOs, again based in North Atlantic, ‘without any conversation with the rest of us’. “In India, we have decided that we will begin to do these deliberations from our side. CareEdge Ratings has come up with a methodology to do sovereign ratings for the world,” he emphasised, urging African nations to take advantage of this service and to help showcase that “India is not only serious about its own growth journey but it is also serious about having partnerships in the Indian ocean and African region.“
Next was a special address by the Secretary-General of the AfCFTA Secretariat, H.E. Mr. Wamkele Mene: “There were some indices of Africa’s potential even before the onset of the pandemic. For example, we know that in 2019, of the 10 fastest growing economies in the world, six were in the African continent we also know that the African continent was growing on average, about 3.4% moderate growth, but still growth nonetheless. I was very pleased of course, to be elected to this position in the year 2020. We need to ensure that Africa’s economy is integrated, that we create a single market that will harness this continent of 1.3 billion people and the combined GDP of USD $3.4 trillion. The mission of the African continental free trade area (AfCFTA) is very, very clear. The assembly of heads of states and government that elected me is very determined in ensuring that we overcome the decades and decades of fragmentation of Africa’s economy, smallness of national economies, lack of industrial development, 42 currencies to transact, and, of course, the challenge of lack of free movement of persons. AfCFTA has the potential to drive sustainable and inclusive investments in Africa by creating a single market that I referred to as single market for transaction of goods, services and capital protection. It is very clear that the AfCFTA can reduce the costs of trade across Africa and make it easier for investors to invest on the basis of a single set of rules for trade and investment.”
He reported that in February 2023, the assembly of heads of states and government of the African Union adopted the very first of its kind, the protocol on trade and the protocol on investment protection in the framework of trade in Africa. For the first time, investment in Africa, which is estimated to be at 4% or below, will now be conducted on the basis of a single set of rules including investment facilitation, dispute settlement, and of course innovation, ensuring innovation in the area of technology, pharmaceuticals and other industrial development areas and sectors of African economy, he averred. “The AfCFTA in my view, lays the basis for this, because for the first time in the history of the African continent over 60 years ago, Africa now has a single set of harmonised means to ensure investment, innovation and job creation. As Africa takes steps towards integration and implementation of the AfCFTA, our view is that the protocol on investment is a significant tool to not only attract investment, but to protect investment on the basis of rules that have been negotiated by all the 47 governments that have ratified the treaty establishing the AfCFTA. Now of course, there are challenges that are related to sustainable development at national level, regional level and continental level, which we must address at the lowest level. These challenges include integrating investment policies into broader development strategy, incorporating sustainable development objectives, international legislation, and improving implementation of investment related policies with more targeted investment outcomes at the regional or continental level. There is a need not only to strengthen regional investment agreements implementation, but also to ensure that we take a coordinated approach to attracting investment, protecting investment not only of foreign investors, but also of African investments, the harmonisation of regulations and standards that we have undertaken in the context of the AfCFTA to ensure enhanced investment flows by reducing compliance costs and increasing efficiency. We hope this will lead to job creation and increasing the attractiveness of Africa as an investment destination and ensuring regulatory alignment across African countries. A new framework is being introduced to ensure the competitiveness of our country as mentioned earlier, by the year 2050 Africa’s combined GDP will be in excess of USD $16.2 trillion, which is a combined GDP of increasing consumer spending and business spending. This projection of USD $16.2 trillion is a clear example of Africa’s potential. We have to make sure that this USD $16.2 trillion is translated into innovation, job creation, competitiveness and industrial development. That is why we’re working very closely with other African agencies within the framework of the African Union, including AUDA-NEPAD, the Africa CDC, and of course the yet to be operationalised African Medicines Agency to ensure that we coordinate in the implementation of harmonised rules and regulations that will ensure the competitiveness of our country.”
For example, the establishment of the African Medicines Agency, to be operationalised by the end of this year, in Kigali, Rwanda; and the AfCFTA patents office to be established to ensure that intellectual property rights such as patents, trademarks, copyrights, and others are registered in a simple office to reduce the cost of doing business on the African continent. “These measures are intended to improve the ease of doing business on the African continent not only for foreign investments, but for African investments. They also intend to ensure the global competitiveness of the African country. I believe that our continent is well poised by the year 2050 to be the seventh or the eighth largest economy in the world. We talk about the competitiveness of the African continent, the ability to create jobs, to spend on innovation, or to create opportunities for millions and millions of young Africans. And so, I hope that in the next 10 years, where we gather here, again, for this very important conference, we will be able to demonstrate that through the AfCFTA we have taken concrete steps by introducing a legal agreement, legal foundation to Africa’s economic competitiveness. And at that point, we will look back and recognise that we’ve made progress but of course we know that there is a long way to go. Many steps have been taken in the last three years to achieve this. For example, working with the African Export Import Bank, we have introduced what we refer to as the Pan African payments and settlement system. This is a digital platform to ensure that Africa can trade and the cost to Africa’s trade is reduced annually, where Africa spends US$5 billion dollars on the cost of currency convertibility. The platform will show that Africans are able to trade amongst themselves across regions of the African continent.“
As the main highlight of the opening ceremony, the keynote address by the Minister of Finance, Economic Planning and Development for Mauritius, the Honourable Dr Renganaden Padayachy, set the stage for the APC by unfolding that: “We are gathered today to debate on key themes and issues which are vital for the development of the African continent. The theme of the African Partnership Conference – Unity in Partnership – Enabling Sustainable & Inclusive Investment – is extremely pertinent – as it is in line with the Mauritius government’s vision and also the continent. The call this morning is for a shared vision. Key statistics show that Africa’s GDP is projected to grow by 4% in 2023. The continent has 25% of natural biodiversity, 30% of resource wealth and 20% of the world’s population. Africa is the 2nd most populous continent with 1.3 bn people which represents significant market potential for businesses and investors. Urbanisation, income growth and rising middle class population will trigger new consumer trends. McKinsey notes that Africa will see 3.8% spending growth to reach US$4 trillion by 2025. Africa is a great place to invest, especially from Mauritius. The continent has 345 companies with annual revenues of $1 billion or more and collectively, they produce revenues of more than $1 trillion. There has never been a better time to collaborate. In India, a historical milestone was set at G20 with inclusion of AU. The AfCFTA that is a market of a combined US$ 3.4 trn GDP is a landmark initiative. I would like to thank AfCFTA Secretariat’s Secretary-General H.E. Wamkele Mene for his distinguished presence and insights for greater trade and economic engagement at the continental level. We can only recognise the potential of this alliance to drive positive change and affirm the rising stature of Africa on the global stage. Mauritius is committed to support in unlocking the potential of the African market. After going through the worst crisis in history, Mauritius has become even more resilient and robust. On 29 September, Statistics Mauritius (SM) latest figures show that Mauritius’ GDP grew by 8.9%, while GVA at basic prices grew by 9.9%. Based on information gathered on key sectors and measures announced in Budget 2023-24, SM indicated that GDP at market prices is forecast to grow at 6.8% instead of 5.4% while GVA at basic prices grows at 6.7%. The main contributors to 6.7% in GVA are accommodation and food services, 1.6%; construction at 1.5%; finance and insurance 0.7%; followed by manufacturing, transport and storage each at 0.4%.”
He noted that Mauritius is also positioning itself as an education hub for the continent and is attractive for those seeking quality education at reasonable cost, with the Mauritian government providing scholarships to exceptional students from Africa to study here. Besides, it is hailed as a bridge connecting investors with Africa by facilitating skill and knowledge driven institutions – be it the British International Investment (BII), Proparco, Dutch Development Bank, GroFin or the Bigen Group – which are using Mauritius as a platform to set up and manage impact funds. A number of banks from countries such as Kenya and Madagascar are leveraging Mauritius to strengthen the banking group’s footholds in African markets while Mauritian conglomerates have diversified presence in key African markets, he emphasised.
“Sustainability and climate resilience are topics of critical importance to Africa. On climate change, Mauritius is calling for collective action to build a more sustainable and inclusive future. Our commitment to COP 26 is unwavering. Towards that end, a number of steps have been taken towards a greener and inclusive economy, reducing Greenhouse Gas Emissions by 40% in 2030 and achieving a renewable energy mix of 60%. The Hon Pravind Kumar Jugnauth is a founding member of the Global Biofuel Alliance launched in Delhi in G20 that aims to foster international collaboration in using biofuels and providing tech support for national biofuel programmes. I have also launched the Mauritius Sustainable Finance Framework on 01 Sep 2023. The time is right to issue green, blue and social sovereign bonds. As a country committed to sustainable development, we are doing our best to contribute to the greater common good. Our success is intertwined with that of the global community. This dynamism can only be achieved by working collectively together. We are born for cooperation, as former Roman emperor Marcus Aurelius rightly said. We may speak different languages and live in different countries, but our future is common and our success, shared,” he concluded.
The keynote address was following by the signing of an MoU between the Ministry of Finance, Economic Planning and Development of Mauritius, Maurice Stratégie, and the Agence Française de Développement; and another MoU between the EDB of Mauritius and the African Private Equity and Venture Capital Association (AVCA).
The opening ceremony drew to an end with a mastermind keynote by the AfDB’s Vice President for Private Sector, Infrastructure and Industrialisation, Mr. Solomon Quaynor, who remarked that: “African countries have gradually recovered from the devastating impacts of the pandemic as highlighted in the African Development bank’s African economic outlook 2023. The average growth of African economies is projected at 4.1% in 2023-24, higher than the estimated 3.8% in 2022. So, the AfDB’s forecast Africa’s GDP to grow from an estimated US $3.4 trillion in 2020, as His Excellency mentioned earlier, to as high as USD $16 trillion by 2050. Africa also has one of the fastest growing middle class in the world, urbanised and markets, consumer and business spending is expected to grow to USD $7 trillion by 2030. And the African youth demographic is the most attractive rate right now. Our strategy here in Mauritius is to both support the country’s domestic development as well as Mauritius as a gateway for foreign investment into the rest of Africa. We have investments in 66 pan-African private equity and venture capital funds, where we have committed over USD $2 billion to be domiciled in Mauritius. We are also supporting several Mauritian banks to finance trade and other investments across Africa. An example is our recent US $100 and $50 million Tier-two capital Basel III compliant investments in Mauritius Commercial Bank. We have also created the African Stock Exchange’s linkage project to essentially simulate a single stock market in Africa with countries from Johannesburg to Egypt from Mauritius to Ghana, which essentially has an aggregated total capitalisation of USD $1.5 trillion. The Mauritius stock exchange is one of the leading stock exchanges in this effort. Over the last few years we’ve also worked with the African sovereign wealth funds to establish the African sovereign investors forum. This group that the Mauritius Investment Corporation recently joined has capital under management of USD $20 billion but serves really as the voice of what I call the USD $2.3 trillion story in Africa. We will continue to be partners with Mauritius on its gateway to Africa. And for me, that is Africa, helping Africa and I call that regional direct investment, not foreign direct investment.“
He highlighted how AfDB are supporting Africa’s broader structural transformation in key three areas:
- First, promote an Africa structural transformation through industrialization to pivot away from extractive exports and help to secure more sustainable and inclusive growth. The AfDB’s Industrialised Africa has strategic priorities setting the goal of lifting Africa out of the gravitational pull of low productivity and expanding the region’s participation in emerging value chains, creating jobs and expanding Africa’s share. The AfDB’s African Green minerals strategy, which aims to harness Africa’s mineral wealth, and seeks to achieve value addition to these critical minerals within regional value chains.
- Second, facilitating the AfCFTA through infrastructure investment. The bank’s commitments to cross border infrastructure totalled about USD $10 billion in the last six years alone, with most of the financing going to transport energy and ICT. Through its investments, the AfDB is helping remove infrastructure bottlenecks, reducing barriers to cross border trade, and achieving regional integration by deepening the delivery of economic corridors underpinned by multimodal transport systems.
- The third area is facilitating the AfCFTA operationalisation through the promotion of SME development and financing, especially women owned and youth businesses. The African Development Bank supports SME participation in high growth sectors and regional value chains. Also, the development of entrepreneurship ecosystems, and the SME access to finance, including through its flagship youth entrepreneurship investment bank, as well.
“On a concluding note, I would like to reiterate that collective action is paramount for Africa’s growth and development. So let us work together to build a stronger, greener and prosperous Africa. Let’s work in partnership – partnership with governments, partnership with the private sector and partnership with similar institutions,” he noted, marking an end to the opening ceremony.
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