AFRICA. A CONTINENT OF INVESTMENT OPPORTUNITY: People, Objectives, Strategy and Means.

Africa has made the headlines, again, as a Continent of opportunity. We said again because in past some openings have been observed but then the move didn’t last as expected. Recently the movement seems to be steady and we noticed the turning pointof the new trend after the former president Obama’s visit (2013) and announcement a US $ 2.5 billion Programme, which renewed the interest for the Continent. A year later, Mr. Elumelu – a Nigerian tycoon and banker – in an interview spelled out his vision on what to do to promote African entrepreneurial spirit: “There are some areas — flood disasters, for instance — where you must give charity. But I think the charity approach to solving other issues must be reassessed. https://www.devex.com/news/tony-elumelu-s-new-africapitalism-82590.The Africapitalism’sIdea has been spelled out; where are the African Capitalists?

The demographic trend is the basic data to look at along with the main socio-economic indicators, to catch the development’s challenges. Simply, Africa’s population has been exploding and the unemployment rate among youngsters is alarming.

By 2030, more than half of Africa’s population will reside in seven countries: Nigeria, Ethiopia, the Democratic Republic of Congo, Egypt, Tanzania, Kenya, and South Africa. But, more important, 43% of Africans will belong to the middle or upper classes, up from 39.6% in 2013, implying considerably higher demand for goods and services. By 2030, household consumption is expected to reach $2.5 trillion, up from $1.1 trillion in 2015. https://www.weforum.org/agenda/2018/03/capturing-africa-s-high-returns/

At the very recent African Continental Free Trade Area (CFTA) held in Kigali, Ruanda (21/03/2018) it has been predicted that Africa will create a single market of up to 1.2 billion people and a collective GDP of more than $2 trillion. The United Nations Conference on Trade and Development also predicts that reducing intra-African tariffs – one of the conditions of AfCFTA – “could bring $3.6 billion in welfare gains to the continent through a boost in production and cheaper goods.”

Over the past four decades we achieved frequent journeys to the Continent and actually cumulated missions in some eighteen Countries both Anglophone and Francophone Regions, having been resident in four Countries. This provided us with a privileged first-hand information, which we decided to complete by reviewing the overwhelming narrative on the matter and, in particular, we focused on the investment opportunity: where and how to invest?

In this context the real question has been: how much social objective could be compatible with a sustainable intervention? The answer may be articulated is in the below mathematical function:

 

Social performance= F (ED-enterprise development; IGA-family income; FA-food aid)

 

Source: Ascanio Graziosi, Financial Inclusion, Give people a job, not a loan. https://itunes.apple.com/us/book/id1116912686

It should be clear that although any organization is social oriented, the degree of achieving a social mission could be quite different whether it works in the segment of enterprise development (accumulation) or income generating activities (increase family income) or food security distribution of basic food to very poor people.

Besides, it must be taken into account that that the bearers of specific interests (financiers, borrowers, investors, sponsors) dealing with business in the above segments may react differently in relation to the market conditions along with their vision, objectives and means available.

In this understanding we have focused on the segment of enterprise development, on the assumption that Enterprises are the backbone of countries’ economy. Moreover, there is a need to give people a job and not a loan, on the grounds that empowering people is the vehicle to mitigate the poverty: this is the main message we detected from the recommendations and suggestions released by the international financial establishment (2030 Agenda for SDGs, CGAP, AfDB, OECD, Basel III and others), which phased out the old-fashion idea to provide credit to mitigate poverty, unless the intervention is sustainable, transparent and affordable.

We do think that it is of utmost importance to promote opportunities around the giant projects that are reshaping Africa, to have a productive impact on the communities. Indeed, the big infrastructure projects although being a condition for a solid development, they aren’t enough for a real take-off, which ask for the promotion of enterprises. When you click the following line

(9)http://www.businessinsider.com/giant-infrastructure-projects-reshaping-africa-2016-12?IR=T/#in-2009-the-common-market-for-eastern-and-southern-africa-began-work-on-the-north-south-corridor-a-series-of-roadways-and-railways-spanning-more-than-6000-miles-across-seven-countries-its-total-cost-is-approximately-1-billion-1

you will have a concrete overview of what’s going on in Africa’s landscape and likely to conclude to give a chance to people living this ideal spine and fulfil their aspirations and needs. But this is just an example, opportunity being available everywhere.

Then the question has been: how to translate in the field activity the proposed approach? We carried out a Feasibility Study THE GATEWAY TO AFRICA INCLUSIVE GROWTH – JAMBO FUND, which is a suitable approach to make it happen poverty mitigation and countries’ inclusive growth via job creation and people empowerment. Although the Continent is the reference (it was necessary to have a landscape to refer to) the Model is suitable for region and country level world-wide. Moreover, the Model is propaedeutic for working out a Business Plan at micro and macro level: it is just a matter to apply the proposed methodology.  Besides a ROI the investors will benefit of Marketing Return by improving their images as social oriented development actors.

There are four basic questions we endeavoured an answer: Who?Why? How? Where?It is just a matter to click the following line:  https://www.morebooks.de/store/gb/book/the-gateway-to-africa-inclusive-growth-jambo-fund/isbn/978-620-2-28375-5

Autore: graziosiascanio

I am doctor in Economics. I am based in London (+44 7943286549) and Rome (+39 3273211887). I do have a banking background and specialization in Microfinance, Project Management-Monitoring-Evaluation, Risk Fund. I have accumulated more than 30 years of experience in 28 Countries and collaborated with the major international development organizations such as World Bank Group, Ministry of Foreign Affairs-Italian Co-operation, European Union, Danish Cooperation, FAO, UNDP and Others in East Europe, Caribbean, Central Asia and Africa.
 SERVICES
- Investment Advisor
- Design, Manage, Evaluate Credit Projects Financial inclusion - Trust Funds - Guarantee Funds
- SME financing & Private Sector Development
- Association in submission Tenders dossiers & EOI
- Assist MFI decision makers to understand situations and take action
- Project Management & Evaluation
- Drafting Technical proposals & Methodologies
- Review and revision MFI strategy & Management
- Investigation for markets opportunities 
- Design credit models & Launch new products
- Capacity building, Business development, Financial inclusion
- Downscaling & Up scaling operations
- Backstopping position to follow-up multiple field activities
- Training Managers & Field staff. I launched the Service A PROJECT FOR MFI DECISION MAKERS. enquiry: graziosiascanio@aol.com I am Founder and Owner of 2030 FINANCIAl INCLUSION with LinkedIn, https://www.linkedin.com/groups/4682884 I published The Gateway to Africa Inclusive Growth, JAMBO FUND https://www.morebooks.de/store/gb/book/the-gateway-to-africa-inclusive-growth-jambo-fund/isbn/978-620-2-28375-5

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