KAMPALA, June 11 – Years of economic reforms across several African countries are beginning to pay off, with foreign investors showing renewed interest in the continent, according to Standard Chartered.
Dalu Ajene, the bank’s Chief Executive and Head of Coverage for Africa, said countries including Nigeria, Uganda, Ghana, Zambia and Egypt are attracting both development financing and private capital after implementing difficult but necessary reforms.
The changes have included clearer regulations, more predictable central bank policies, improved transparency and, in Nigeria’s case, the removal of fuel subsidies. According to Ajene, these steps have helped restore confidence among investors following the financial strain many African economies faced after the COVID-19 pandemic.
He noted that export credit agencies and development finance institutions have played an important role in supporting this shift. One example is the UK Export Finance-backed $1 billion refurbishment of Tin Can Island Port in Lagos.
Ajene also said hedge funds and asset managers, particularly those investing in local currency government debt, have returned to several African markets. At the same time, investment from Gulf countries, especially the United Arab Emirates, is expected to grow as economic partnership agreements signed with countries such as Nigeria, Kenya, Mauritius and Morocco begin to take effect.
He added that these cooperation frameworks could help unlock larger investment deals in sectors including energy, mining and food security, moving beyond the smaller transactions that had previously dominated the landscape.
Ajene also defended the use of total return swaps by African governments, arguing that the financing instruments offer quicker and more flexible funding options when traditional markets become difficult to access.
