Decentralised finance may be the panacea for filling Africa’s Investment Gap
by Pomy Ketema, Counsel, Baker McKenzie, New York
African countries continue to face substantial financing gaps as they take on projects of all sizes in pursuit of development. To tackle the slowdown in foreign direct investment since the onset of the pandemic, some African countries are actively courting their diaspora and looking for pockets of cash-rich businesses around the continent.
Each country is on its own development trajectory. However, continental and regional initiatives, such as the African Continental Free Trade Area (AfCFTA), are being harnessed as broad-based wealth-creation vehicles. The AfCFTA, which took effect on January 1, 2021, aims to create an integrated continental market by reducing trade barriers among its 54 signatory countries. The trading pact is still under ...