Ashly DhaniBusiness Writer
Afreximbank has called for a united front in driving Africa’s industrialisation, warning that the continent is lagging behind in the Fourth Industrial Revolution.
The call was made by the bank’s Senior Executive Vice President, Denys Denya, during the SADC Industrialization Week Investment Forum held in Harare recently. The event brought together key stakeholders from the region to discuss strategies for boosting industrialisation and trade.
Denya stressed the need for increased investment, both from within and outside the continent, to spur industrial growth. He emphasized that Africa must accelerate its industrialization process to compete effectively in the global economy.
He described the current state of affairs as ‘unacceptable’ and made the case for advancing the cause of industrialisation through Africa Direct Investment (ADI) and Foreign Direct Investment within the SADC region and across the broader African continent, to “transform our continent”.
“We have just completed a report on ADI, which will be published before the end of the year, and we have also developed a framework that would be used by investment promotion agencies and other stakeholders to measure ADI and put forward interventions to facilitate and promote ADI. The initiative will also facilitate the implementation of both the AfCFTA and SADC protocols on investment.”
Recognizing the challenge of securing finance for industrial projects, Mr Denya announced Afreximbank’s commitment to address this gap through its project preparation facility and investment promotion initiatives. A key component of this strategy is the upcoming publication of the Afreximbank Africa Direct Investment Report, which aims to promote intra-African investment and facilitate the implementation of the AfCFTA and SADC investment protocols.
To support trade and investment deals emerging from the forum, Afreximbank offered a range of financial products and services, including grant financing, project preparation, advisory, capital markets solutions, capacity building, and guarantees.
The bank highlighted its successful investments in the region, such as the Zimborders project in Zimbabwe, the Lucara project in Botswana, and the Cabinda oil refinery in Angola.
Some of the key investment projects the Bank has supported in the SADC region include funding of US$70 million and provision of investment guarantees that unlocked US$300 million for the Zimborders project in Zimbabwe, the US$100 million Afreximbank African Trade Centre investment in Zimbabwe, US$44 million for the Lucara project in Botswana and US$100 million for the Cabinda oil Refinery in Angola.
Other major pipeline projects include the US$2 billion Amufert Petrochemical fertilizer plant in Angola and the US$529 million Nyanza Light Metals Titanium Dioxide Pigment plant in South Africa.
Afreximbank also unveiled plans for industrial park development, the establishment of the Africa Trade and Distribution Company, and the expansion of its Export Agriculture for Food Security Initiative (ExAFs). These initiatives aim to enhance market access, support smallholder farmers, and boost agricultural production.
Dr. Gainmore Zanamwe, Director for Trade Facilitation and Investment Promotion at Afreximbank, highlighted the bank’s growing focus on ADI, emphasizing its potential for sustainable growth. He also outlined Afreximbank’s role in de-risking investment projects and building capacity among investment promotion agencies.
Ms. Oluranti Doherty, Managing Director, Export Development, underscored the importance of Special Economic Zones (SEZs) in driving agro-industrial transformation and food security. She shared Afreximbank’s experience in supporting SEZ development across Africa and announced the bank’s commitment to investing over US$1 billion in SEZ infrastructure.
By combining these initiatives, Afreximbank aims to play a pivotal role in catalyzing industrialisation and economic growth across the SADC region.
Online Reporter