, NAIROBI, Kenya, Apr 5 – Kenya and other governments in the Sub-Saharan Africa have been urged to come up with new strategies that will attract more Foreign Direct Investments in the continent.
Citadel Capital Managing Director Karim Sadek says the biggest task is to put more effort in developing and building critical national infrastructure and adding value to natural resources.
FDI is often considered as an essential source of capital, which not only generates new job opportunities but also balances domestic investment.
Currently, the United States, United Kingdom, Japan and France hold more than 70 percent of the total FDI stock in Africa.
On volume basis, the oil exporting nations such as Nigeria and Angola are leading the list of nations with significant FDI inflows.
Sadek said there is need for the governments to collaborate more with the private sector to hasten some of the key national infrastructure projects including roads and energy and set policies that will attract more investors.
He emphasised the need to grow the Africa Intra-trade which currently stands at 10 percent.
However significant differences still exist in trade regimes within and between the African countries.
Boosting intra-African trade requires that the trade policy of African countries be designed or differentiated in such a way that no other African country would receive a less favourable treatment than is given to a non-African country, whether the latter is developed or developing.
While the whole the world suffers from economic downturns, he noted, Africa is becoming a home for high growth and returns.
“Citadel Capital has been saying “Africa Rocks,” and ‘it’s time for Africa” long before eyes started to get fixated on this continent,” Sadek said.
Sadek spoke ahead of the Africa Venture Capital Association (AVCA) annual conference scheduled to take place in South Africa from April 8 this year.
The annual conference is the lead industry gathering in the area of private equity and an opportunity where top decision-makers in the sector will meet to advance the African Private Equity market and the investment climate on the continent.
Since 2003 in Cameroon, AVCA has held conferences in Kenya, Morocco, Senegal, Botswana, Egypt and most recently in Ghana.
The conference will attract more that 300 delegates from over 30 countries globally.