Date: December 6, 2023 11:55 pm
has disclosed that investors are shifting focus away from fintech investments to essential sectors such as energy and water.
The co-founder of Stears, Abdul Abdulrahim, disclosed this at the just concluded IATF 2023 conference.
He noted that there was a need to dissect high-level growth trends in Africa and understand the driving forces behind them.
He highlighted that there had been a notable shift in foreign direct investment in recent years with dominant players like South Africa, Nigeria, and Ghana witnessing a redistribution of investment interests to countries like Rwanda, Senegal, and the Democratic Republic of the Congo.
Abdulrahim added, “While fintech has historically been a major attraction for investors, this year witnessed a decline in technology investments across the region, potentially falling below $3bn.
“The focus is shifting towards essential sectors like energy and water, recognising the fundamental importance of addressing basic needs for sustained economic growth.”
According to Abdulrahim, energy investments in Africa are experiencing a shift towards renewables, reflecting a global trend towards sustainability.
“Climate resilience and protection have become crucial factors for investors, both from a development finance perspective and in terms of long-term sustainability for the continent,” he further stated.