– Security concerns –
African investors should spearhead growth in the continent, which can come from developing the region’s infrastructure, some delegates said.
“When our own people invest then other investors get convinced,” said Sindiso Ngwenya, head of the Common Market for Eastern and Southern Africa (COMESA).
He added that trade and investments within COMESA had surged from $837 million in 2007 to $12 billion currently.
Officials said a robust railway network could further propel growth.
“Rail will do to Africa what it did to agriculture in Asia and even in America. If you have power and rail, Africa will explode,” Benedict Oramah, president of African Export-Import Bank, told AFP.
But rising terrorism and falling commodity prices pose challenges to growth.
“The new problem affecting investments is international terrorism… lot of resources that could be used for development are being diverted to address security issues,” Nigerian President Muhammadu Buhari said.
Nigeria, Africa’s largest economy, is fighting a brutal insurgency launched by Boko Haram in 2009.
Boko Haram, which wants a hardline Islamic state in northern Nigeria, has killed some 17,000 people and forced more than 2.6 million others to flee their homes since the insurgency began.
Bankers say despite these challenges, the continent remains an investment destination.
“We plan to invest 12 billion dollars in the energy sector over the next five years… so that people in Africa can have universal access to electricity,” Africa Development Bank president Akinwumi Adesina told AFP.
The continent still has 645 million people without access to electricity, he said, and the only way to address the issue is to widen private sector participation in the energy sector.
Africa’s economy is projected to grow by 4.4 percent this year and five percent in 2017 as against three percent growth expected in developed countries, he said.
“Africa is doing well despite the challenges it is facing,” Adesina said.
