US invests over $1.6 billion in 153 deals in Africa last year, FIN President reveals

…Holds 2nd African Cashless Payment Systems in Abuja Nov

By Lateef Ibrahim, Abuja

Over US $1.6bn were invested across 153 deals in investment markets in African countries in the year 2021, the

President, Foreign Investment Network (FIN), Dr. Alex Itkin has revealed.

The key investment markets, according to Dr Itkin, remain Nigeria in the West, Kenya in the East, and South Africa in the South of the African continent.

This was disclosed in a press statement yesterday by Dr Itkin on the second African Cashless Payment Systems conference coming up in November this year in Abuja, the nation’s capital.

Other countries such as Egypt, the statement showed, have also seen some sizeable deals.

The value of deals in Nigeria in the first quarter of 2021 alone, the statement said, outstripped that of 2020.

It explained that raising such a quantum of finance from foreign sources is unprecedented in a period when other economies are witnessing very slow recovery from the pandemic.

Africa, Dr Itkin pointed out, is regarded as the world’s second-fastest growing and profitable payments and banking market after Latin America.

The continent, he added, is inching towards becoming a global leader in mobile money adoption, accounting for the bulk of the mobile money transactions made in 2020 – a year that saw the number of mobile money accounts rise by 43%.

According to Itkin, “After the brief economic disruptions occasioned by the COVID-19 pandemic, deals came back with massive foreign investment inflow.

“Available data showed that over US $1.6bn were invested across 153 deals, two times the value in 2020 (US $800m) and representing a 50% increase in transaction numbers.

“The key investment markets remain Nigeria in the West, Kenya in the East, and South Africa in the South.

“Other countries such as Egypt have also seen some sizeable deals. In Nigeria, the value of deals in the first quarter of 2021 alone outstripped that of 2020.

“To raise such a quantum of finance from foreign sources is unprecedented in a period when other economies are witnessing very slow recovery from the pandemic.

“Africa is the second largest banking market in the world today in terms of growth and profitability, partly because of the rapid adoption of new technology”, he said.

The fulcrum of the second edition of Africa Cashless Payment Systems Conference, he said, is to trigger the development and implementation of safe, reliable and efficient national payments systems and Financial Market Infrastructures (FMIs) in Africa which is very crucial in achieving a secured, affordable, accessible payment solutions as well as expand financial inclusion, foster development and support financial stability in Africa.