The African Business Review Jan-Feb 2014 | Page 21

their foreign counterparts, have latched on to the “good wind’ blowing
into Africa. They are not only on ground leveraging opportunities for
robust returns; they appear to impact more lives by creating employment
and developing basic amenities to change the face of Africa. Their
significant revenues have in more cases than one, transformed their
organizations from continental players to global brands now represented
across other continents of Africa, Asia and the Middle East.

The African Business Review App
Available now for iPad

Conclusion

It is no longer in doubt that Africa now seeks partners to reverse a
trend of low capacity and deficient infrastructure to re-invent itself
as a giant of reckoning through reformist programs across diverse
sectors. In pursuit of a sustainable development agenda, private equity
firms (PEs), development financial institutions (DFIs) and other
government financing structures that benefitted from an initial leap of
faith (drawing from their positive investment testimonials), are exploring
other investment opportunities. The ultimate goal is to fast track the
infrastructure development process and develop sustainable industries,
and built to last small enterprises that can create employment for the
young population of Africa currently at 40% of its population, and
estimated to become 42% of the world in the next 25 years (World
Bank, 2012).

Africa would do well to industrialize its continent, and position
itself as a viable destination for the world’s future economic investments.
Given the high growth rate of its economies, its immense potential to
develop at a rapid rate, and by improving its logistic performance index
(LPI- ports agility), Africa may find that it can no longer be ignored
as a “first choice” continent for investments.
African governments are now pursuing the same agenda of private
financing and new partnerships to increase their tax benefits and to
scale up financing from various sources to close its facility deficit on
a sustainable basis. The inadequacy of public funds to support Africa’s
infrastructure gap, currently put at an annual $93b till year 2020 (AfDB,
2010), is daunting. However, the case studies of a few countries that
have initiated policy actions to address these challenges show that there
is light at the end of the tunnel.

It remains to be seen who will take the next train to Africa. Africa
waits... the world watches.

About the author:

Olutoyin is the Managing Partner at InVcap and oversees the
Management of the firm’s private equity and funds investment.
Olutoyin serves on the boards of other corporations including Casa
Foundation and Friends of Africa. She is the Convener of the Friends
of Africa Economic Development Summit in Canada. She was the
Group Executive of Investment Banking and Group Treasurer at
Intercontinental Bank Group.

She holds an MBA from the University of Ife and graduated
from Wharton’s A