World to Africa
Introduction
Introduction from Standard Bank
African economies continue to evolve in a challenging macro environment, with growing foreign investment interest globally.
Yet a common issue with African investments is the relative lack of transparent data on investor interest in Africa. Which markets are global investors targeting? What sectors are most appealing? Which risk factors are holding them back?
To address this gap, Standard Bank and ValueExchange have led a first-of-its-kind industry-wide study - in an effort to ‘demystify’ the African markets.
In cooperation with the Bank of New York Mellon, Africa Venture Capital Association (AVCA), South African Venture Capital Association (SAVCA), Global Custodian and MiDA we have gathered feedback from over 200 global investors and on the issues that they face today.
Some 76% of global investors polled in the research claim to be studying the markets, preparing for entry or readying to deploy additional investments into the continent with 45% of global investors already having some exposure to African markets. Although volumes of Africa-bound investments are yet to return to pre-pandemic levels, the study reveals that 34% of investors planned to increase their investments into Africa in 2022.
In Africa the opportunity to 'do right' through investments is widespread. We see significant opportunities for global investors to support Africa’s long-term growth through investments in green-field projects that drive financial inclusion and social benefits as well as investment returns.
Since the release of our survey's Key Findings in Q1, 2022, Standard Bank has engaged with numerous global investors for detailed discussion via webinars and individual meetings. This ‘ World to Africa’ Handbook provides insights from these discussions and other research to provide you a comprehensive view of survey findings and hope to address many questions of the global investor looking to start their investment journey in Africa.
Hari Chaitanya
Head of Investor Services, Africa
Unique perspectives from our campaign partners
BNY Mellon was delighted to collaborate on the World to Africa survey, an exciting, global benchmarking study, which has yielded noteworthy insights into the future of the African investment opportunity.
When speaking to global investors around their growth strategies, a key finding which resonated with BNY Mellon, shows 76% of investors look set to growth their investments into Africa.
As a long-standing supporter of the African region, BNY Mellon is excited by this institutional re-engagement with African investments, demonstrating the resiliency of the region in the face of COVID-19.
We continue to see a focus by investors on South Africa, Nigeria, and Kenya, however, this survey has highlighted additional countries which will shortly be benefitting from growing investor confidence including Botswana, Zambia, and Namibia.
Although unsurprising that investment returns continue to drive flows, the study did unearth a large mindset change of North American investors. Whilst not traditionally synonymous with Africa, ESG and Fintech opportunities are drawing worldwide attention and attracting those seeking global diversification. This also reflects the global shift, to a more sustainable investment approach, which will also support the region’s long-term growth.
The global investment community appears ready to act on Africa’s potential.
Jon Mann
Global Head of Banks, Broker Dealers and Insurers - BNY Mellon