African Governments Urged to Boost Intra-Continental Investment for Industrial Growth
Sahara Group has called upon African governments, investors, and industry leaders to prioritize intra-African investments as a crucial pathway to industrialization. This shift emphasizes that the continent’s growth strategy must move beyond ideas and donor aid, focusing instead on large-scale execution to achieve tangible results.
Shifting Towards a Continental Investment Mindset
During the ongoing African Refining and Distribution Association (ARDA) Week in Cape Town, South Africa, Sahara Group Executive Director Temitope Shonubi articulated the need for Africa to transition from an isolated, national investment strategy to a more cohesive, continent-wide approach. This new strategy should focus on partnerships, value creation, and mobilizing local capital, as highlighted in a statement by Bethel Obioma, Head of Corporate Communications at Sahara Group.
Addressing Africa’s Gaps and Challenges
Shonubi emphasized the importance of moving forward by acknowledging the existing challenges. He noted a significant divide between Africa’s current status and its potential. Closing this gap is essential for Africa’s future development.
TRIPS Framework as a Guiding Approach
An essential element of Sahara Group’s strategy is the TRIPS framework—Transform, Innovate, Inform, Execute, Succeed. This execution-focused model has been shaped by over three decades of operations within the Africa energy value chain, aiming to transform how investments are initiated and executed.
Shifting the Perception of Africa as an Investment Hub
Shonubi highlighted the importance of changing the narrative that depicts Africa solely as a recipient of aid rather than a viable investment partner. Although foreign direct investment has outstripped official development assistance in recent years, a perception endures that capital costs on the continent have risen significantly, which can deter long-term investment.
Overcoming Institutional Barriers to Trade
He pointed out that industrial value chains cannot thrive amid a patchwork of regulations and multiple currencies across 54 countries. Such fragmentation impedes competitiveness and discourages investments. The TRIPS framework also serves as a roadmap for policy reforms that would facilitate intra-African trade, which currently comprises only about 15% of the continent’s total trade.
Aligning Policies, Capital, and Skills for Success
Shonubi asserted that while Africa is rich in opportunities, it suffers from a lack of synchronized policies, capital investment, skilled labor, and effective execution. He argued that although investment now exceeds aid in scale, the prevailing mindset often falls short. Until the continent positions itself as a reliable investment destination, capital will remain cautious.
Emphasizing Workforce Development and Infrastructure
A critical aspect of the TRIPS approach is the need to enhance Africa’s workforce, shifting educational paradigms from traditional models to focus on value creation. With over 80% of Africa’s labor force engaged in informal employment, aligning skills development with industrial demands is imperative for moving from raw materials to local processing and manufacturing.
Shonubi remarked that the ultimate test of this framework will be its performance, particularly in delivering large-scale infrastructure projects in the energy sector. Today, more than 600 million people in Africa lack access to electricity, underscoring the urgency of effective implementation of supportive measures aligned with Sahara Group’s investments in power generation, distribution, and downstream energy, which includes 2.7GW of generation capacity powering over 1.5 million homes.
Collaborative Efforts for Sustainable Growth
Shonubi underscored that no single company can drive this initiative alone. Each stakeholder bears responsibility; governments must enact reforms, industries need to deliver results, investors should commit to long-term assets, and African citizens must invest domestically. He urged ARDA members, policymakers, financiers, and operators to treat the TRIPS framework as a collective commitment—one that prioritizes intra-African investment, regional scalability, and sustainable implementation—essential for catalyzing Africa’s next stage of growth.
