UAE leads GCC investments in Sub-Sahara Africa over the last 5 years
The UAE accounted for 88% of investment from the Gulf Co-operation Council (GCC) to Sub-Sahara Africa between January 2016 and July 2021, or $1.2 billion, according to a newly released whitepaper issued by The Economist Intelligence Unit (EIU) and commissioned by Dubai Chamber, in the lead up to the 6th Global Business Forum Africa in Dubai.
Based on a survey of200 business leaders in sub-Saharan Africa, representing a wide range of economic sectors, the whitepaper examined several trends reshaping the business landscape in Africa during the pandemic, African markets’ responses to new challenges, and the post-pandemic business outlook, highlighting prospects for boosting trade and investment flows between the GCC and Africa in the near future.
Fintech, healthcare, agriculture, and e-commerce were identified in the report as high-potential sectors where business leaders see revenues expanding in 2022. Around 90% of surveyed executives said they expect fintech to see the most growth in 2022, followed by healthcare (89%) and agriculture and food (87%).
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The report highlighted Africa’s need to provide the basics, including legislation, regulations, and infrastructure to promote growth in key sectors. Secondly, the report highlights the digital economy as a leading engine of the continent’s growth, before underlining the role that GCC countries can play to support Africa to bridge the gaps in its infrastructure.
The report further elaborates on the role that African companies can play in supporting Gulf economies and expanding in the region.
Among the recommendations outlined in the report are: building a new business structure that ensures the economic basics for African markets, adopting legislation to regulate economic sectors and direct the economy towards achieving sustainable strategic goals, and providing the necessary infrastructure for business growth and prosperity.
Key obstacles limiting bilateral business exchange include burdensome regulations and bureaucracy were considered the top impediment to growth, cited by 59% of executives surveyed, as well as a lack in public amenities, inadequate roads that are unable to connect suppliers and manufacturers with retail centres, and a weak digital infrastructure.
