The rise of Africans Investing in Africa (AIA)
Wednesday, February 26, 2014
Foreign firms are not the only ones heavily investing in Africa’s numerous opportunities, shows the “Africa attractiveness survey 2013, getting down to business” published by Ernst & Young (E&Y). Increasingly, Africans, who were previously Missing In Action (MIA), are becoming Africans investing in Africa (AIA). Investments range from individuals in Africa, the diaspora, the private sector, governments, multilaterals and even social enterprises.
The rise of Africans investing in Africa (AIA) is not only a catalyst for attracting greater amounts of foreign capital, but is also a positive sign of growing domestic investor confidence. This is a welcome development needed to increase Africans’ wealth, but not without promoting sustainable development and inclusive growth. Thanks to technology, increased access to information, improved and more transparent legal and macroeconomic policies as well as lucrative returns, more Africans are investing not only in their countries, but across borders as well. This finding reinforces Vincent Le Guennou, Co-CEO of Emerging Capital Partners, a fund that invests heavily in Africa, comment that, “It is difficult to ask foreigners to come to Africa if Africans themselves do not invest there,”; this simply makes sense.