Gillian Marcelle, PhD

The recent exit of these companies, and others, from African markets repeats a familiar pattern; foreign companies doing business in Africa often struggle to navigate local conditions and idiosyncrasies – from corporate oversight to foreign policy and domestic infrastructure. Aside from creating domestic job losses, such departures can affect investor confidence. This leads to more tentative local and foreign investment, which in turn can perpetuate a cycle of economic stagnation and foreign dependency. With the continent projected to be home to a quarter of the world’s population by 2050, multinationals must rethink current business approaches and operations in Africa to help the region’s economic growth match its potential. #africa #business #corporate #startups #enterprise #sustainability #entrepreneurship #entrepreneurs #society

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The average yield on Nigeria’s sovereign Eurobonds yield has expanded near 10% base in the international market as inflation-propelled riskoff sentiment triggered selloffs. https://lnkd.in/eCUcQbwT #Eurobonds

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Strategic Infrastructure and Global Partnerships: Biden’s Africa Visit and the Lobito Atlantic Railway President Joe Biden’s recent visit to Africa marks a pivotal moment in U.S. efforts to deepen strategic partnerships and infrastructure investments on the continent. Central to this visit is the Lobito Atlantic Railway project, a transformative initiative poised to enhance regional economic integration and global supply chains. The Lobito Economic Corridor, stretching from Angola’s Lobito port to critical mining regions in the Democratic Republic of Congo (DRC) and Zambia, represents a milestone in infrastructure development. This project not only refurbishes rail links but also facilitates the efficient transport of essential minerals such as copper and cobalt key components for clean energy, artificial intelligence, and advanced technology industries. The U.S. seeks to establish itself as a reliable alternative to other foreign investors in Africa, promoting infrastructure projects with rigorous standards in labor and anti corruption practices. By investing in initiatives like Lobito, the U.S. aims to counterbalance the influence of China and Russia while securing critical resources necessary for the global energy transition. Beyond minerals, the corridor offers expansive economic potential, driving agribusiness growth, renewable energy projects, and enhanced food security. Improved logistical efficiencies reduce transit times, boosting regional trade and accelerating Africa’s economic development. Angola’s evolving role as a regional partner also took center stage. President Biden’s meeting with Angola’s President João Lourenço underscores Angola’s strategic shift from reliance on China and Russia. This partnership further cements Angola’s position as a linchpin for regional growth and global supply chains. The project has garnered bipartisan support in the U.S., with prior initiatives under the Trump administration, such as the U.S. International Development Finance Corporation (DFC) and Prosper Africa, aligning seamlessly with Biden’s policies. Corporate interest, exemplified by KoBold Metals’ copper investments in Zambia, highlights the corridor’s global economic significance. The Lobito Atlantic Railway project is more than an infrastructure initiative; it is a critical step toward global clean energy transitions, robust regional integration, and enhanced trade networks. As this initiative progresses, it reaffirms the U.S. commitment to fostering sustainable, high impact development partnerships across Africa. #LobitoCorridor #AfricaInfrastructure #USPartnerships #GlobalEnergyTransition #SupplyChainInnovation https://lnkd.in/gAF6jgEh

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 To #bridge #infrastructurefinancegaps, African #bank backs Acre Impact Capital.  #SouthAfrica’s RMB - Rand Merchant Bank helped the #firsttimefundmanager raise $100 million for its fund. Acre writes #checks for African #infrastructureprojects to cover the roughly 15% #gap left by #creditguarantees from #importexportbanks (learn more about the model).  The bank’s #commitment underscored the growing #appetite from #Africa's #commercialinvestors to #invest in #enablers of #economicgrowth  (see, "Mobilizing African capital for African infrastructure – without concessional financing").

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"In a sign of the stickiness of the colonial development model of resource extraction—where African countries systematically exported raw materials and natural resources to European powers and imported value-added manufactured goods at higher prices—the round-tripping model, which has been responsible for huge foreign exchange reserve leakages and sustained balance of payments pressures, has persisted, even as Africa’s direction of trade has shifted eastward. According to most recent estimates, #hydrocarbons dominate #IndiaAfricatrade, with refined #petroleum and related products topping India’s total #exports to Africa in 2022"

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During the recently concluded UNGA High-Level Week, I participated in the Water-Secure Cities Roundtable co-hosted by The World Bank’s 2030 Water Resources Group and Reckitt, where I had the opportunity to shed light on one of Lagos' pressing challenges: water access. With a sizable percentage of our residents living in riverine areas, where crossing water bodies is a daily reality, we must focus on building the necessary infrastructure to improve their lives. As a government, we are approaching this holistically, ensuring that solutions are not only practical but sustainable. I also emphasised that Lagos is currently falling short of meeting its daily water needs. This challenge leaves many people relying on boreholes, and until we can create a more sustainable system—including water purification plants, proper reticulation, and metered usage—we just will not be able to implement tariffs. The solution lies in partnerships, with SDG17 being at the core of what we are striving for. We must collaborate, both locally and globally, to bring the necessary resources and expertise on board. More importantly, we need behaviour change communication to ensure that every drop of water is treated as the precious resource it is. Telling Lagos' story on the global stage is not just important, it is crucial. Through these international platforms, we can attract the partnerships that will lead to sustainable development for our city and improve water security for all. As Special Adviser on SDGs, this is one of my core priorities, and I remain committed to securing a brighter, more water-secure future for Lagos. #OreoluwaFinnih #UNGA2024 #WaterSecurity #WorldBankWRG #SDG17 #PartnershipsForTheGoals

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MDB Private Capital Mobilization Market Failure Elevated at World Bank Meetings                                                                                                                            Africa investor (Ai) issued a Memo entitled, "More Smoke & Mirrors: The Calculated Mirage of Adequate MDB Private Capital Mobilization for Africa’s Climate & SDG Investment Goals." This memo coincides with the Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Washington DC.                                                                                                                            The high-level Memo serves as a cautionary note to African Heads of State that despite the World Bank’s recent self-congratulatory progress updates on the implementation of the long overdue Multilateral Development Banks (MDBs) reform agenda, they continue to preside over an epic Private Capital Mobilization (PCM) market failure, with inadequate PCM key performance indicators (KPI’s) and no answer to mobilizing the desperately needed trillions, to industrialize and transform Africa’s abundant natural and human capital. The Memo issued during the World Bank Spring meetings, whilst serving as a cautionary note on MDB PCM market failures, outlines a roadmap to shift away from dependence on short-term subsistence development finance. Instead, it advocates for mutually rewarding, ambitious long-term private industrial investment partnerships that could quickly establish the continent as the world’s premier manufacturing hub for investable green technologies and artificial intelligence innovation.                                                                                                                             Read the Memo here: https://lnkd.in/d7QCB9tX

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As many countries/treasuries and wealth funds accumulate gold, the quest for Africa’s abundance of gold continues. There are unintended consequences, such as gold fueling civil wars. It’s an important subject also because of gold’s ability to store value relative to sovereign currencies.

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While foreign investors flock to Nigeria's bond market, enticed by high yields and President Tinubu's reform promises, one can't help but wonder if this influx is a blessing or a curse. Will it fuel economic growth or create a debt bubble waiting to burst? Nigeria must tread carefully to ensure that this foreign capital is harnessed for sustainable development, not just short-term gains. #Nigeria #BAT #NigeriaEconomy #ForeignInvestment #BondMarket #SustainableDevelopment https://lnkd.in/emy7eF7B

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History repeats itself in yet another so-called developing economy, rich in resources, yet still reliant on external financial resources that it does not need! In this tragicomic story we see the usual legal and institutional mechanisms deployed to ensure the eternal cycle of debt imposed upon a sovereign state. Neocolonialism in full swing. #IMF #Ghana #SovereignBonds #Debt Ghana’s debt restructuring deal falters after IMF rebuff - https://on.ft.com/3Q4y9yq via @FT

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Last week I joined Voice of America- Straight Talk Africa along with Michael Walsh, where I analyzed the implications of a Trump presidency for the African continent. I explored key initiatives from his previous administration, including Prosper Africa and the U.S. International Development Finance Corporation (DFC), highlighting their significance in fostering trade and investment partnerships with African nations. In our discussion, I emphasized the critical need for the United States to prioritize and deepen trade relations with Africa. This is not just essential for mutual economic growth but also a strategic move to counterbalance the growing influence of China and Russia, who continue to expand their presence and footprint across the continent. Strengthening U.S.-Africa ties is vital for ensuring a sustainable and equitable global partnership in the face of shifting geopolitical dynamics. Thank you for the invite Zoe Leoudaki & Vincent Makori You can watch the full interview here: https://lnkd.in/dwzcskdn

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