Economic Commission for Africa (ECA) has called for a shift in perspective and if Africa’s partnership with Europe is to deliver on the promises of shared prosperity.

In a published statement following the 5th European Corporate Council on Africa and the Middle East Summit, Claver Gatete said this shift should include de-risking investments in key sectors that can unlock the full potential of public private partnerships.

He said: “Up to 80 percent of the initiated infrastructure projects across Africa fail at the feasibility and planning stages.

“African countries are also faced with unfair risk perceptions that deter investors. We need to reverse this trend.

Patrons view products at a Mitc-organised SME trade fair in Lilongwe

Gatete urged African economies to be more intentional about leveraging foreign direct investment (FDI) and official development assistance (ODA) to de-risk private investments,” he said.

Gatete observed that although the Europe’s relationship with Africa

 has been driven by the priorities of FDI and ODA, FDI constitutes only around five percent each of Africa’s financial resources.

“FDI inflows into Africa have been static, hovering around $40 to $50 billion

 annually, a trend that began well before the Covid-19 pandemic,” he said.

He noted that numerous initiatives have been launched to leverage FDI and ODA, yet Africa has not fully realised the desired impact.

Data provided by Mitc shows that in 2022, Malawi registered investment pledges amounting to $2 billion (about K3.4 trillion), which is more than double the pledges the country got in 2021 amounting to $800 million (about K1.4 trillion).

During the review period, $189 million (about K321 billion) of the investment pledges translated to actual investments, a rise from the previous year’s $129 million (about K219 billion), but still shy of the $252 million (about K428 billion) recorded in 2020.

Speaking at a Malawi Investment Summit held on the sidelines of the United Nations General Assembly in New York last month, President Lazarus Chakwera presented Malawi as one of the most attractive destinations for FDI.

He said the investments government has attracted implemented in recent years will create a conducive environment for FDI

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