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uncultivated arable land left to feed the world, tilting more US private sector investments to SUPPLY
so what Africa does with agriculture will Africa.
determine the future of food in the world. “It is time to refresh, reengage, and re- Iraq can boost oil output
And the size of the food and agriculture invest in Africa. As you do, it is important to
market in Africa will reach a whopping $1 base investment decisions on Africa on facts, by 200,000 bpd in 2022 if
trillion by 2030. not fiction, or perceptions.
“If these are not enough to convince you “Perception is not reality. Think of the asked
to invest in Africa, let me try further. Africa’s following: In 2020, Moody’s Analytics
Continental Free Trade Area will become performed a 10-year cumulative assessment Iraq has the capacity to increase its oil
the largest free-trade zone in the world, with of global infrastructure debt default rates, by production by 200,000 barrel per day (bpd)
a market size of $3.3 trillion, covering 54 region.” this year if asked, an executive of Iraq’s Basra
countries, with a population of 1.3 billion “It found that infrastructure loans perform Oil Co. (BOC) told Reuters on Friday.
people. worse in Eastern Europe, Latin America, “If Iraq is asked to increase production, we
“Renewable energy investment and Oceania. Africa was the region with the can add 200,000 barrels until the end of the
opportunities are immense, including 10 TW second lowest cumulative default rate, after year as available production capacity,” Hassan
of solar, 350 GW of hydropower, 150 GW of the Middle East. Mohammed, deputy BOC manager in charge
wind, and 15 GW of geothermal. “Proof once again, that infrastructure as of oilfields and licensing rounds affairs, said in
“The African Development Bank is an asset class in Africa is solid, secure, and an interview.
mobilizing $20 billion for developing the profitable.” “But (to produce) more than this amount,
Desert to Power in the Sahel, which will He said that is why the African (we) need more time.” The increase will come
power the economies of 11 countries with Development Bank invested over $44 billion from West Qurna 1 oilfields and other oilfields
solar and become the world’s largest solar in infrastructure in Africa in the past six years, developed by Iraqi state-run oil companies,
zone. from energy, transport, digital infrastructure, Mohammed added.
“From DRC, Morocco, Namibia and water, and sanitation. This comes two weeks after US President
Botswana, huge opportunities exist for green “The largest investor in infrastructure Joe Biden’s visit to Saudi Arabia as part of his
hydrogen, the fuel of the future” in Africa among all multilateral financial first trip to the Middle East as US president,
The AfDB boss’s said in the 2020 survey institutions. “That is also why Africa50 hoping to strike a deal on oil production to
conducted by the African Private Equity and is investing in commercially viable help drive down gasoline prices.
Venture Capital Association, about 45% of infrastructure which has demonstrated that Oil prices have rocketed to their highest
Limited Partners expect returns in Africa to pension funds and sovereign wealth funds can levels since 2008, climbing above $139 a barrel
outperform those of emerging markets and profitably invest in infrastructure in Africa. in March, after the United States and Europe
developed markets, over the next 10 years. “Africa50 has established the Infrastructure imposed sanctions on Russia over its invasion
“60% of limited partners indicated that they Acceleration Fund, a private equity fund, to of Ukraine, which Moscow calls a “special
plan to increase allocations to Africa in the raise $500 million from institutional investors. military operation.” Prices have slipped since
next three years. Adesina noted that the fund, which expects then.
“I really believe that this is the time for to reach a first closing this year, “presents an Separately, Indonesia’s state-owned oil
US investors to rapidly move into and invest excellent opportunity for US institutional and gas firm Pertamina bought 10 percent
massively in Africa. There is always a first- investors. I urge you to invest in it. of Exxon Mobil’s stake in Iraq’s West Qurna
mover advantage, and opportunities wait for African Development Bank, according 1 oilfield, increasing its share to 20 percent,
no one. to him, is already working closely with while BOC bought 22.7 percent of the field.
“US Foreign Direct investment to several US agencies to help promote greater In January, the Iraqi government gave its
Africa in 2020 was $47.5 billion. While investments in Africa, including the Prosper approval for the Iraqi National Oil Company
this is significant, there is a lot of room for Africa, Power Africa, US Development to acquire Exxon Mobil Corp’s stake in the
expansion, as the FDI from US to Africa Finance Corporation, as well as the US Trade giant West Qurna 1 oilfield.
represents only 5.2% of US’s global foreign Development Agency. West Qurna 1, in southern Iraq, is one of
direct investment. VANGUARD the world’s largest oilfields with recoverable
Adesina noted that President Biden’s Build reserves estimated at more than 20 billion
Back Better World can help a long way in barrels. It produces around 550,000 barrels

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