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At the World Economic Forum in Davos, held last week in Switzerland, there was a lot of talk regarding crises. The war in Ukraine and its consequences on energy and food prices. But also the worsening of inequalities in the world with, for the first time in 25 years, the increase in extreme poverty or even the climate. But Davos is also the place where the world’s economic elite gathers with a concentration of CEOs of multinationals looking for investment opportunities. Can Africa and its continental free trade area, Zlecaf, be part of it?
From our special correspondent in Davos,
Convincing investors in Davos that the Zlecaf is a market of the future is the mission given to it by its secretary general, the South African Wamkele Mene. ” We have had meetings with CEOs of multinationals in the automotive, commodities, agribusiness sectors, and all of them want to know more regarding the potential benefits that the Zlecaf market can offer », declared Wamkele Mene. « Especially in these times of geo-economic tensions, investors are looking for niche markets where they can invest and set up alternative supply chains. »
However, according to Bob Moritz, CEO of the audit firm PwC, which for 26 years has published a study on investment projects around the world, the continent is not a priority. ” Africa is still considered by the CEOs of multinationals as an investment opportunity, but rather on a 20-30 year horizon, not 10 years “, he believes. “ It is for this reason that the CEOs engage very gently, very moderately in Africa. For them, it is more regarding planting some seeds whether it be on the political or on the business level for future developments. They’re not going to invest heavily like they’ve done in Asia or like they’re doing now in the Middle East.. »
► To read also: At the Davos Economic Forum, notable absences
“The largest pool of labor will be in Africa”
These CEOs are wrong, replies Wamkele Mene. ” If you are a CEO with a forward-looking vision, you would know that at the turn of this century, the largest labor pool will be in Africa: one in four workers “, he argues. “ We have over 60% of the arable land. 35 % of world mineral reserves. If you are an investor who identifies growth potential. You would start entering this market now. »
And to those, many in Davos, who ask him why he let China dominate the African market, Wamkele Mene remains pragmatic. ” China is planning for the long term. Why don’t you? If China started investing in Africa 20/30 years ago and if it has intensified its investments from year to year, you should ask yourself what China has seen in this market. So stop projecting without doing anything because you will be excluded from this market. »
But at a time when investors are more cautious than ever in the face of the disorders of the world, not sure that this message is heard.
