The African Development Bank (AfDB) President, Akinwumi Adesina, has declared Africa as an unparalleled investment destination, with the continent’s demand for housing projected to create an astonishing $1.4 trillion opportunity by 2050.
Speaking at the 2024 Africa Investment Forum (AIF) Market Days in Rabat, Morocco, Adesina highlighted Africa’s transformative potential across multiple sectors, backed by compelling data that underscores its growing global significance.
Adesina pointed out that Africa’s food market is expected to reach $1 trillion by 2030, while infrastructure development demands at least $170 billion in annual investments. He underscored the rapid population growth, noting that by 2050, Africa’s population will double to 2.4 billion, equaling the current combined populations of China and India. This demographic explosion positions Africa as a key driver of global economic trends, with surging demand for consumer goods, digital services, and housing.
“Population is destiny,” Adesina stated. “By 2050, one in four people in the world will be African, creating unparalleled demand for products and services. The need for housing alone will transform into a $1.4 trillion investment opportunity, fueled by urbanization and demographic expansion.
Adesina highlighted Africa’s emerging dominance in the global energy transition. The continent is home to vast reserves of critical minerals essential for green technologies, including 95% of the world’s chromium, 90% of Platinum Group Metals, two-thirds of cobalt, and significant deposits of lithium, manganese, and graphite. These resources are vital for the growing electric vehicle and battery storage markets, which are projected to expand from $7 trillion in 2030 to $59 trillion by 2050.
Africa’s potential to advance from raw material supplier to a hub for value-added industries in critical minerals presents a transformative opportunity. Adesina cited the Democratic Republic of Congo’s lithium-ion battery precursor plant, which costs three times less to develop than similar facilities in the U.S., China, or Poland, as an example of Africa’s competitive edge in this sector.
The AfDB President also emphasized the continent’s attractiveness as a destination for green infrastructure investment. The Alliance for Green Infrastructure, backed by the G7 and spearheaded by the AfDB, aims to mobilize $10 billion for green projects. Adesina highlighted the bank’s innovative $750 million hybrid capital issuance, which was oversubscribed by eight times, demonstrating investor confidence in Africa’s potential.
Addressing perceptions of risk, Adesina debunked the myth that Africa is a high-risk investment destination. He cited data showing Africa’s default rate at just 1.9%, significantly lower than North America’s 6.6% and Latin America’s 10.1%. “Africa is not as risky as many think. The numbers tell a different story,” he affirmed.
The Africa Investment Forum, which aims to connect investors with opportunities, has already mobilized $180 billion in investor interest over its past five editions. Of this, $30 billion in transactions have reached financial closure, with deals worth over $15 billion originated in 2024 alone—a record-breaking achievement.
Adesina called on global investors to take advantage of Africa’s vast and diverse opportunities, urging them to support the continent’s ambition of becoming a global hub for green energy and industrial transformation. “Africa’s future is bright,” he concluded. “It is not a continent of risks but one of unmatched opportunities, and the time to invest is now.”
The AfDB remains committed to fostering sustainable development and accelerating economic growth, with initiatives that align with Africa’s long-term vision for prosperity and global relevance.
