'Africa Offers Great Prospects For Qatari Investors'

(MENAFN- The Peninsula) Victor Bolorunduro | The Peninsula

Doha, Qatar: With the volume of trade between Qatar and African countries witnessing significant growth in recent years, driven by mutual economic interests and strategic partnerships, Africa is positioned to be the next frontier for Qatari investors considering tremendous opportunities the continent offers, said Yassin Aman Mohamed Al Jabarti, Director of Gulf African Commercial Representation (GACR) Qatar.

Over the years, the 55 countries of Africa have taken centre stage of the global investment agenda, with the continent widely regarded as“The Next Asia”. Foreign direct investment and international projects in key areas such as energy, infrastructure, and finance have become major driving forces behind the unparalleled growth of African markets.

The booming economies of Nigeria, Kenya, Ethiopia, Angola, and other nations-many of them expecting GDP growth rates in excess of 7% per year, every year, for decades to come-offer fascinating opportunities for global business and African citizens alike.

According to statistics from the National Planning Council, the volume of trade between Qatar and South Africa, Africa's largest economy, was QR980m in 2023, while its volume of trade with Egypt stood at QR540m within the same year. For Algeria and Nigeria, the third and fourth African biggest economies at the moment, it was QR297m and QR342m, respectively, while it was QR48m for Ethiopia, the fifth biggest economy in Africa.

“Qatar's strategic focus on economic diversification has led to a growing interest in the African continent, presenting a wealth of opportunities for businesses,” noted Al Jabarti, who, together with his partner, Saleh Gawas, the president of GACR, helps in facilitating investment opportunities for Qatari investors in African countries.

“Qatari investments in Africa have continued to rise tremendously over the years, be it institutional or private investments. The combination of Africa's abundant natural resources, large and growing population, and economic potential has made it an attractive destination for Qatari investors,” Al Jabarti, whose company helped provide various support services like logistics and accommodation to many African countries that participated in the FIFA World Cup Qatar 2022, added.

According to him, Qatari investors can benefit from Africa's large and growing population, which represents a vast market for Qatari products and services.

“Aside from this, investing in Africa's natural resources can also secure a stable supply of commodities for the economy, while expanding business operations to Africa can also help in boosting the diversification drive of many businesses aside from enhancing their global reputation and reach,” he added.

“By working together, investors and entrepreneurs in Qatar and Africa can create a mutually beneficial partnership that drives economic growth and development across both sides, considering the tremendous opportunities available to everyone,” Al Jabarti noted.

He opined that startup accelerators and venture capitalists (VCs) in Qatar can also take advantage of Africa's booming market to enhance their portfolio considering that the technology, media, and telecommunications (TMT) sector has been a major driver of Africa's dealmaking since the pandemic, posting the highest aggregate value across all sectors on the continent over the past three years.

“It was widely reported that activity so far this year has been very strong, with nine deals worth a combined $2.9bn posting the highest quarterly value in just over two years,” he said.

Investment in Africa's expanding fintech industry is growing as companies race to access the region's predominantly unbanked population. The challenge is significant, with only 43 percent of sub-Saharan Africa's population holding a traditional bank account, according to the International Monetary Fund. Mobile money services are on the rise, offering individuals without a conventional bank account the chance to access financial services.

Africa's fast-growing digital community presents a significant opportunity for companies and investors seeking to tap into this largely unexplored market, as the region's 4G usage is projected to increase by over 100% in the next five years.

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