Africa offers a lot of investment opportunities, but investors' challenges need to be addressed.
This was stated by the UAE's top government officials at the third Africa Global Business Forum in Dubai on Tuesday.
"One of the issues is laws and regulation in many African countries. African countries need to address our concerns and our investors' concern," UAE Minister of Economy Sultan bin Saeed Al Mansouri said at the forum. "I see in this forum an opportunity to find successful solutions to meet the various challenges and to strengthen the flow of GCC investments, especially the UAE investments into African markets," the minister hoped.
GCC investments in infrastructure projects in Africa are currently estimated at $30 billion. Out of this amount, $15 billion constitutes direct investments while the other half is in the form of assistance, loans and grants. Infrastructure investments in Africa during the past decade comprised seven per cent to 10 per cent of the total foreign investments in infrastructure in the continent.
DP World, which has six terminals spread across five African countries, also faces challenges in the continent.
The Dubai terminal operator is in a dispute with the Djibouti government over its port concession.
DP World chairman Sultan Ahmed bin Sulayem said that African countries must do more to cut red tape and develop their infrastructure if they need to attract investment and trade. Citing certain rules and regulations, he added that bureaucracy and red tape kills business. The chairman said that may investors have concerned about risk when consider investment in African countries.
Citing bottlenecks on the road and in the system, he said that there are soft problems and infrastructure issues as well.
Despite all challenges, the UAE is the main trading partner of Africa within the GCC and about 80 per cent of the UAE's imports from Africa are primary products, such as food produce and beverages.
Dubai's non-oil trade with Africa reached $32.4 billion in 2014, growing from $22.9 billion in 2011 and showing about 40 per cent increase.
The event was attended by over 40 African, UAE and Arab leaders, including heads of state, prime ministers and chairmen, as well as leading figures from banks and sovereign funds.
The event was held under the theme "New Drivers, New Partners" and coincides with the 50th anniversary of the Dubai Chamber of Commerce and Industry.
