The issue of debt and foreign investment has long been a concern for African countries looking to spur economic growth and development. In a recent panel discussion at the AfCFTA Business Forum, a panelist noted that reliance on foreign investment to support projects has been a hindrance to Africa’s economic progress, as much of the revenue generated is directed towards debt servicing rather than investing in much-needed social infrastructure.
This sentiment is shared across many African countries, with debt-to-GDP ratios reaching 50-60% in some cases. While debt can be a useful tool for financing development projects, the high levels of debt servicing can limit a country’s ability to invest in social programs and infrastructure.
However, the AfCFTA Business Forum, co-hosted by the AfCFTA Secretariat and the Government of South Africa, provides a platform for African countries to engage with the private sector and promote a private sector-friendly environment. The forum’s focus on priority sectors such as agro-processing, automotive, pharmaceuticals, transportation and logistics, and digital trade, could be instrumental in unlocking economic growth and development across the continent.
As the biggest business event in Africa, the AfCFTA Business Forum offers a unique opportunity for businesses to connect with funding opportunities and investment possibilities in the AfCFTA value chains. The private sector engagement platform, curated specifically for the forum, offers a chance to connect businesses with the resources they need to take advantage of the trade and investment opportunities offered by the AfCFTA.
It is hoped that by raising awareness of these opportunities, businesses across Africa can unlock their potential and drive economic growth and development on the continent. Moreover, by focusing on these priority sectors, the forum can help stimulate trade and investment opportunities within Africa, reducing the reliance on foreign investment and debt servicing.
The AfCFTA Business Forum offers a much-needed platform for African countries to connect with the private sector and promote a private sector-friendly environment. By leveraging the forum’s focus on priority sectors, African businesses can unlock the potential of the AfCFTA value chains and drive economic growth and development across the continent.
Norvanreports