African Investment Landscape in 2024: Prime Opportunity for Global Investors

Chris Taylor, the Head of the African Business Group at Addleshaw Goddard the international law firm, has provided insights into the investment outlook for Africa in 2024. He has emphasised the current market conditions as presenting a “unique opportunity for international investors” to expand their presence and capitalize on the continent’s growth potential.

Chris Taylor remarked, “We’re witnessing a significant uptick in transactional activity, offering financial and strategic investors a plethora of opportunities across Africa’s burgeoning tech sector, thriving consumer markets, and its transition towards sustainable energy. With much of Africa maintaining political stability and experiencing lesser inflationary pressures compared to global counterparts, businesses are rightly exploring growth avenues within the continent.”

He added, “Our projections indicate that 18 African countries are poised to achieve growth rates surpassing 5 percent in 2023, a figure expected to rise to 22 in 2024. Additionally, Africa’s average GDP growth for 2024 is forecasted at around 4.3 percent, outperforming the global average of 3.4 percent, highlighting the resilience and promise of African economies amidst global economic challenges.”

Energy and Infrastructure:

Africa continues to lead major energy and infrastructure projects, with a growing focus on renewables. Key countries driving activity in 2023 and anticipated for 2024 include Kenya, Nigeria, Ghana, Ethiopia, and South Africa.

Dispute Resolution:

Addleshaw Goddard’s innovative co-counsel model, coupled with litigation funding options, positions the firm at the forefront of dispute resolution in Africa. This approach empowers African claimants to enforce their rights without facing upfront costs, fostering unprecedented opportunities for legal enforcement across the region.

Highlighted Deals:

Addleshaw Goddard’s Africa Business Group has been instrumental in advising on several notable deals, including:

  1. Assisting British International Investment (BII) in establishing, financing, and managing equity arrangements for Ghana’s first private equity fund focusing on SMEs.
  2. Advising AgDevCo and BII on their contribution of Jacoma Estates, a major player in the African macadamia nut industry, into AgriStar of South Africa.
  3. Advising James Finlay on the divestment of its Kenyan tea estates to Browns Investments of Singapore, marking the conclusion of James Finlay’s century-long involvement in Kenyan tea plantations.

Thriving Sectors:

Key sectors witnessing substantial activity include renewable energy, healthcare, agriculture, and sustainable forestry.

Private Equity Landscape:

While private equity (PE) investments remain limited due to factors such as market volatility and challenges in achieving exits, the development finance community emerges as a credible alternative source of finance, deploying patient capital to bolster business growth across Africa.

Addleshaw Goddard’s African Expertise:

Addleshaw Goddard boasts a seasoned team with specialized expertise in Africa, comprising partners and associates proficient in handling African transactions, reaffirming the firm’s commitment to facilitating and navigating investment opportunities across the continent.

Source: Addleshaw Goddard LLP.