Africa has become the second-most popular investment destination worldwide, attracting a record 87 billion USD in foreign direct investment over the course of 2014. The capital value of FDI projects in Africa in 2015 was down slightly, to 71.3 billion USD. However, this still represented a significant increase over the 2010-2014 average of 68 billion USD.
The region has attracted foreign investment into agriculture, infrastructure, natural resources and energy. This has mainly come from Chinese investors, but Middle Eastern investors are becoming increasingly active in the region.
Robert Hersov, the founder of Invest Africa, is “creating the bridge between the UAE and Africa”. Earlier this year, Invest Africa launched a new office to target Gulf businesses that are using Dubai as a gateway to Africa, due to its geographical proximity to the continent as well as its famously efficient, business-friendly regulatory environment.
Africa represents a consumer market of 1 billion people and the opportunity to engage in high-risk, high-return investment activity in markets with a relatively low barrier to entry and very little competition. According to Hersov, “The Middle East has been exceptionally generous to Africa, but a lot of it’s been based on aid. African prime ministers and presidents have come here… and the Middle East, particularly the UAE, has been extremely generous.” He points out that while much of the capital flow from the Middle East to Africa has been in the form of initial funding for projects without sustainability or continuity, he believes that this is changing – meaning that Middle Eastern investors are now more willing to invest over the long term.
Naseba has spent over a decade building a network of contacts with investors based around the world – including the Middle East. Our team of investor analysts specialises in understanding the needs and mandates of investors. Our investors have expressed strong interest in deploying capital in Africa, and we are currently sourcing African investment opportunities on their behalf.
On October 5th, 2016, we will be organising a private investor meeting in Dubai to introduce pre-screened Middle Eastern investors to pre-qualified African investment opportunities.
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To learn more, contact:
Naseba investor introduction
+971 4 455 7954