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1、Africas Development Dynamics 2023INVESTING IN SUSTAINABLE DEVELOPMENTAfricas Development Dynamics uses lessons from Central,East,North,Southern and West Africa to develop policy recommendations and share good practices across the continent.Drawing on the most recent statistics,the analysis of develo

2、pment dynamics aims to assist African leaders in reaching the targets of the African Unions Agenda 2063 at all levels:continental,regional,national and local.This edition explores how Africa can attract investments that offer the best balance between economic,social and environmental objectives.Its

3、fresh data and analysis aim to help policy makers improve risk assessments,strengthen African-led partnerships,and accelerate regional integration in ways that increase sustainable investments.Two continental chapters examine Africas investment landscape and related policy priorities.Five regional c

4、hapters offer tailored recommendations in strategic areas including natural ecosystems,renewable energy,climate fnance and agri-food value chains.Africas Development Dynamics feeds into a policy debate between the African Unions governments,citizens,entrepreneurs and researchers.It proposes a new co

5、llaboration between countries and regions,focusing on mutual learning and the preservation of common goods.This report results from a partnership between the African Union Commission and the OECD Development Centre.PRINT ISBN 978-92-64-42501-9PDF ISBN 978-92-64-41759-5AFRICAS DEVELOPMENT DYNAMICS 20

6、23 Investing in Sustainable Development2023INVESTING IN SUSTAINABLE DEVELOPMENTD Y N A M I C SAFRICAS DEVELOPMENTConsult this publication on line at www.au.int/en/afdd2023 and https:/doi.org/10.1787/3269532b-enThis work is published on the African Union Commissions website and OECD iLibrary.Visit ww

7、w.au.int and www.oecd-ilibrary.org for more information.Africas Development Dynamics2023INVESTING IN SUSTAINABLE DEVELOPMENTThis work is published under the responsibility of the Secretary-General of the OECD and the Chairperson of the AUC.The opinions expressed and arguments employed herein do not

8、necessarily reflect the official views of the Membercountries of the OECD or its Development Centre or of the member countries of the African Union Commission.The names of countries and territories used in this joint publication follow the practice of the African Union.This document,as well as any d

9、ata and map included herein,are without prejudice to the status of or sovereignty overany territory,to the delimitation of international frontiers and boundaries and to the name of any territory,city or area.Please cite this publication as:AUC/OECD(2023),Africas Development Dynamics 2023:Investing i

10、n Sustainable Development,AUC,Addis Ababa/OECD Publishing,Paris,https:/doi.org/10.1787/3269532b-en.ISBN 978-92-64-42501-9(print)ISBN 978-92-64-41759-5(pdf)ISBN 978-92-64-50712-8(HTML)ISBN 978-92-64-41655-0(epub)Africas Development DynamicsISSN 2790-2765(print)ISSN 2790-2773(online)African Union Comm

11、issionISBN 978-92-95119-91-8(print)ISBN 978-92-95119-92-5(pdf)Photo credits:Cover design by Aida Buendia(OECD Development Centre)on the basis of images from Smilewithme,Taparong Siri,Sidhe,Tomiganka/S.Corrigenda to OECD publications may be found on line at:www.oecd.org/about/publishing/corrigenda.ht

12、m.AUC/OECD 2023The use of this work,whether digital or print,is governed by the Terms and Conditions to be found at https:/www.oecd.org/termsandconditions.3AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023ForewordThe annual flagship report Africas Development Dynam

13、ics provides the latest information on economic policies on the African continent and in its five regions.It proposes a new narrative assessing Africas economic,social and institutional performance in light of the targets set by the African Unions Agenda 2063.This 2023 edition explores how Africa ca

14、n attract investments that offer the best balance between economic,social and environmental objectives.Africas Development Dynamics is the product of a collaborative approach.It results from a strong partnership between the African Union Commissions Department of Economic Development,Trade,Tourism,I

15、ndustry and Minerals and the OECD Development Centre,bringing together a team of academic researchers,economists,statisticians,and experts from Africa and other regions.The first two chapters explore the current investment landscape in Africa and recommend priority actions,offering lessons from acro

16、ss the continent and beyond.The next five chapters focus respectively on the five regions as defined by the Abuja Treaty:Southern,Central,East,North and West Africa.These chapters tailor policy recommendations to strategic areas in each region,covering natural ecosystems,renewable energy,climate fin

17、ance and agri-food value chains.This edition draws on a wide range of data sources to analyse public,private,domestic and foreign sources of investments.These sources are complemented by primary data collected through an AUC/OECD online survey on investment risks,barriers and priorities linked to cr

18、oss-border investments in African countries.The survey was administered from June to October2022 to the networks of African business councils and the EUAfrica Business Forum,gathering responses from 58African and non-African business representatives.Eight in-depth interviews with multinational inves

19、tors that are members of the OECD Emerging Markets Network(EMnet)were also conducted to supplement the survey results.The cut-off date for data used in the report was 18February2023,except for gross domestic product figures taken from the IMF World Economic Outlook,April 2023.A statistical annex is

20、available online,and its data are updated throughout the year.It contains the latest economic,social and institutional indicators across African countries for which data are comparable.The list of summary tables appears in the last pages of the report.The data are presented by country,region,Regiona

21、l Economic Communities and other relevant groups of African countries(the categories include resource endowment,levels of income and socio-economic development,geographic access,and language groups).They compare Africa with other world regions and country groups.Additionally,the database offers stat

22、istical profiles for different African countries and country groups,comparing key thematic indicators related to investment.This database aims to inform decision makers,advisors,business analysts,private investors,journalists,non-governmental organisations and citizens around the globe who are inter

23、ested in the development trajectories of African countries.The full report is published in English,French and Portuguese.An electronic version is also available online,together with accompanying figures and tables.These,along with the statistical annex,appear on the websites of both the African Unio

24、n Commission(www.au.int/en/afdd2023)and the OECD Development Centre(https:/oe.cd/AFDD-2023).5AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023AcknowledgementsThe flagship economic report Africas Development Dynamics 2023:Investing in Sustainable Development(AfDD 20

25、23)was jointly prepared by the African Union Commission(AUC)and the OECD Development Centre.It is published under the aegis of H.E.Moussa Faki Mahamat,AUC President,and H.E.Mathias Cormann,OECD Secretary-General.It was guided by H.E.Albert M.Muchanga,Commissioner for Economic Development,Trade,Touri

26、sm,Industry and Minerals of the African Union,and by Ragnheiur Eln rnadttir,Director of the OECD Development Centre.The report was supervised by Djamel Ghrib,Director,Department of Economic Development,Trade,Tourism,Industry and Minerals,and by Patrick Ndzana Olomo,Acting Head of the Economic Policy

27、 and Sustainable Development Division,Department of Economic Development,Trade,Tourism,Industry and Minerals,along with Federico Bonaglia,Deputy Director of the OECD Development Centre,and Arthur Minsat,Head of the OECD Development Centres Africa Unit and Senior Economist.The drafting team of the AU

28、C consisted of Patrick Ndzana Olomo,Acting Head of the Economic Policy and Sustainable Development Division,Rumbidzai Treddah Manhando,Economist,Ndinaye Sekwi Charumbira,Policy Officer(Department of Economic Development,Trade,Tourism,Industry and Minerals),and Yeo Dossina,former Acting Director(Depa

29、rtment for Economic Development,Integration and Trade).Regional experts who contributed to the report included Abiodun Egbetokun(De Montfort University and Nigerias National Centre for Technology Management),Kevin Ibeh(Birkbeck University,University of London),Nabil Jedlane(ENCG Tanger),Nicholas Nge

30、pah(University of Johannesburg)and Bruno Emmanuel Ongo Nkoa(Universit de Yaound II).The team at the OECD Development Centre,led by Arthur Minsat,Head of the Africa Unit,with Nicolas Friederici,Francesco Napolitano and Elisa Saint Martin,included Bakary Traor,Keiko lvarez,Niall Begley,Mdina Issa,Sbas

31、tien Markley,Ignacio Moreno,Shodai Tonomoto and Anne Weaver.Julia Peppino,Anne-Marie Trang(OECD)and Yamrot Kifle(AUC)gave valuable support to the research,production,logistics and administrative work on the report.Inputs and data were provided by the OECD Directorate for Financial and Enterprise Aff

32、airs,the Network of Foundations Working for Development(netFWD),the International Energy Agency and the OECD Trade and Agriculture Directorate.Chapters1 and 2 benefited from feedback from Mariya Aleksynska,Nelson Amaya,Pierre de Boissson,Juan de Laiglesia,Hvard Halland,Alejandra Meneses,Bathylle Mis

33、sika,Hyeshin Park,Lorenzo Pavone,Jan Rielaender,Henri-Bernard Solignac-Lecomte,Melanie Vilarasau Slade and Ayumi Yuasa(OECD Development Centre);Antonella Noya,Irene Basile and Chiara Petroli(OECD Centre for Entrepreneurship,SMEs,Regions and Cities);Dirk Rttgers(OECD Centre for Tax Policy and Adminis

34、tration);Hlne Franois,Fatos Koc,Iris Mantovani,Catriona Marshall,Giulio Mazzone,Stephen Thomsen and Martin Wermelinger(OECD Directorate for Financial and Enterprise Affairs);Yasmin Ahmad,Abdoulaye Fabregas,Ida McDonnell and Rachel Morris(OECD Development Co-operation Directorate);David Drysdale and

35、Juliette Schleich(OECD Trade and Agriculture Directorate);Carlos Cond and Alin Horj(OECD Global Relations and Co-operation Directorate);Emma Gordon,Arnaud Rouget,Carlo Starace,Gianluca Tonolo and Daniel Wetzel(International Energy Agency);and Johannes Jtting(PARIS21).A survey and interviews with pri

36、vate investors supported the original analysis in Chapters1 and 2.Several African business councils and the EU-Africa Business Forum supported the dissemination of the AUC-OECD Development Centre investor survey from June to October2022.Interviews,facilitated with support from the staff of the OECD

37、Acknowledgements6AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Emerging Markets Network(EMnet),were conducted with representatives of the AeTrade Group,the African Association of Automotive Manufacturers(AAAM),American Tower,AT&T,Enel Green Power,Eni,Huawei and

38、Mastercard.The report drew from the following consultations held in 2022 and 2023:the kick-off meeting(March 2022);the high-level consultation event“Mobilizing Investment for Productive Transformation and Quality Jobs”in the framework of Senegals chairmanship of the African Union in 2022(May);the jo

39、int AUC-DEV high-level working lunch“Strengthening Africas Regional Production Networks”in the framework of the 21st International Economic Forum on Africa and the OECD Ministerial Meeting 2022(June);the joint AUC-DEV high-level policy discussion“Enhancing Cross-border Digital Payment Systems for Af

40、ricas Regional Trade and Integration”(June 2022);the AUC-OECD Development Centre regional kick-off meeting;the 5th AU Specialized Technical Committee on Finance,Monetary Affairs,Economic Planning and Integration on the theme“Improving Africas Access to Capital:Debt Management and the Rising Influenc

41、e of Credit Rating Agencies”(July 2022);the meeting on AfDD 2023 at the Cames Institute;the AfDD 2023 peer review meeting(December 2022);the“AU-OECD/DEV High-level Dialogue on the AfDD 2023 Report”organised back to back with the 36th African Union Summit(February 2023);and the OECD Development Centr

42、e Governing Board meeting(April 2023).Substantive contributions from Anzetse Were(FSD Kenya);Katharina Gugerell,Melinda Kunde and Stefan Weyler(Deutsche Gesellschaft fr Internationale Zusammenarbeit GIZ);Jeremy Hajdenberg and Samuel Monteiro(Investisseurs&Partenaires),and Rana Roy(consultant)are gra

43、tefully acknowledged.The chapters benefited from comments and inputs from the following experts:Barassou Diawara(African Capacity Building Foundation ACBF);Ed Brown,Rob Floyd and Charles Odoom(African Center for Economic Transformation ACET);Julius Chupezi Tieguhong(African Development Bank AfDB);Ad

44、enle Ademola(Africa Sustainability Innovation Academy ASI-Academy);Eoghan Molloy(Asian Development Bank);Michel Rougeron and Franoise van de Ven(ATIBT);Pamla Gopaul(African Union Development Agency AUDA-NEPAD);Jeanne Ltt and Karen Pfundt(Bundesministerium fr wirtschaftliche Zusammenarbeit und Entwic

45、klung BMZ);Margarida Arajo,Paula Machado and Filipa Sousa(Cames Instituto da Cooperao e da Lngua,I.P.);Richard Ebaa Atyi(Center for International Forestry Research CIFOR);Charles Muchunku(consultant);Robert Zougmor(Consultative Group for International Agricultural Research CGIAR);San Bilal and Bruce

46、 Byiers(ECDPM);Koffi Simeon(ECOWAS);Colin Bermingham(EIB);Geoffrey Aori Mabea(Energy Regulators Association of East Africa);Anna Hakami,Claire Hunault,Isabelle Magne and Domenico Rosa(European Commission);Kieu Ly Doan and Lisa Roob(GIZ);Matthias Hahl and Tim Heinemann(KfW);Thng Nguyn-Quc(Oxford Econ

47、omics Asia),Gonalo Silva Marques(Permanent Delegation of Portugal to the OECD);Giovanni Valensisi(UNCTAD);Rodrigo Deiana(UN DESA);Zoubir Benhamouche,Adam Elhiraika,Sonia Essobmadje,Robert Lisinge and Sheng Zhao(UNECA);Barbara Boreta and Natasha Weisert(UNIDO);Leila Baghdadi(University of Tunis);Andr

48、ew Lawrence(University of the Witwatersrand)and Adeel Abbas Syed(World Bank).The report benefited from external consultations held in 2022 and 2023 at the following meetings:AFD,“Lconomie africaine 2022:vers une relance durable?”;AUC/UNIDO,“Towards a Commodity-based Greener Industrialization under t

49、he AfCFTA”(February2022);Cameroons African&Foreign Investment B2B senior management seminar(March2022);the AUC Fridays of the Commission“Key Actions to Drive Inclusive Growth and Sustainable Development in African Countries”(April 2022);Le Cercle des conomistes,“LAfrique:partenaire leader”(May 2022)

50、;the United Nations Economic Commission for Africa Regional workshop“Scaling-up Private Sector Participation in North Africa”(July2022);the AUDA-Acknowledgements7AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023NEPAD/OECD-DEV High-level Dialogue on Rethinking Devel

51、opment Co-operation at the United Nations General Assembly(September 2022);Innodays:International Conference for Innovation and Entrepreneurship(November 2022);the OECD EMnets Annual Meeting“Navigating Risk in Emerging Markets:From Crisis to Opportunity?”(December 2022);the African Sports and Creati

52、ve Institute Business Breakfast“Investing in Africa Sports Industry”(January 2023).The involvement of the editing,translation and proofreading team was crucial to producing the report on time.The report was edited by Isabelle Delpech(for chapters drafted in French)and Jill Gaston(for chapters drafte

53、d in English)and translated by Marika Boiron and the OECD Translation Services.Delphine Grandrieux and Elizabeth Nash supervised the production,and Luminess was responsible for page layout.Aida Buenda and Melodie Descours created the graphic design and the cover,and Irit Perry developed the infograp

54、hics.The OECD Development Centre is grateful to the European Commission(DG INTPA),Germany(BMZ/GIZ),Italy(Ministry of Foreign Affairs and International Co-operation)and Portugal(Cames Instituto da Cooperao e da Lngua,I.P.,and the Ministry of Foreign Affairs)for their additional support and valuable f

55、eedback on this fifth annual edition of Africas Development Dynamics.9AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023EditorialInvestment is key to propel Africas development,and to attain the African Unions Agenda2063 and the Sustainable Development Goals.Yet,glo

56、bal crises have widened the African continents sustainable financing gap.Africa needs an extra USD1.6trillion by 2030 USD194billion annually to achieve the Sustainable Development Goals.The sustainable financing gap can be bridged:it is equivalent to less than 0.2%of the value of global financial as

57、sets,or 10.5%of the African-held financial assets.Since the turn of the 21st century,Africa has boasted the worlds second-highest rate of economic growth after developing Asia.Yet despite this strong growth,global investment has shifted focus away from the continent.Greenfield foreign direct investm

58、ent(FDI)has decreased from 12%of the worlds total in 2017 to less than 6%in 2021 compared to 15%for developing Asia and 10%for Latin America and the Caribbean.Low sustainable investment is a tragic paradox,when so many opportunities exist.The continent boasts unique assets that should attract more i

59、nvestment to boost transformative and sustainable activities.Take the energy sector.Africa is endowed with 60%of the worlds best solar resources,but only 1%of installed solar generation capacity.Africa also has the worlds youngest population,with a median age of 19years.By 2050 25%of the global popu

60、lation will reside in Africa.The world must therefore better invest in African youth now to fully realise its significant opportunities.Low investor confidence and high cost of capital are holding back investment in Africa more than any other world region.In uncertain times,investors are more attent

61、ive to macroeconomic and political risks,like policy predictability and regulatory capacity.Scarce skilled labour and quality infrastructure can hinder investment,notably in technology-driven sectors or where large upfront investment is required.Investors scepticism results in incongruity:the Africa

62、n continent boasts the worlds lowest default rates for infrastructure,yet most projects go unfinanced.Better policies can turn challenges into opportunities.Our analysis highlights three priorities.First,fit-for-purpose data will support informed investment decisions,better aligning risk perceptions

63、 to realities.Too many investors withhold decisions because of insufficient or costly information gathering.Second,African-led partnerships can optimise the impacts of sustainable finance on development and better catalyse investments into local sustainable activities.The deepening and integration o

64、f domestic capital markets,the development of local currency bonds and the strengthening of ESG compliance are part of the solution.Third,deepening African integration further,notably by implementing the African Continental Free Trade Area(AfCFTA)and its protocol on investment,will harmonise policie

65、s among countries and facilitate value chains development.10AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023editoriAl10AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023The growing partnership between the African Union Commission

66、and the OECD,including through its Development Centre,provides an important venue to inform global narratives on Africa and bring the African continent from the frontier to the heart of global investment.Leveraging our policy dialogue platform on investment and productive transformation in Africa,we

67、 are committed to working together to monitor trends and identify good practices on the continent that mobilise greater investment for sustainable development and job creation.We are proud that this joint report,now in its fifth edition,contributes to enhanced global partnerships and an effective po

68、licy dialogue that benefits African people.Moussa Faki MahamatChairperson African Union CommissionMathias CormannSecretary-General Organisation for Economic Co-operation and Development11AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Table of contentsForeword.3Ac

69、knowledgements.5Editorial.9Abbreviations and acronyms.19Executive summary.21Overview.23The African continent offers large untapped potential for sustainable investments.23Better data,African-led partnerships and regional policies can accelerate sustainable investments across the continent.29Note.35R

70、eferences.35Chapter 1.Africas sustainable investments in times of global crises.39In brief.40Africa continental profile.42Sustainable investments have not yet met the opportunities African economies offer.43Lower investor confidence and the higher cost of capital help explain why investment remains

71、weaker in many African countries compared to other world regions.48Existing channels for investment show untapped potential to support Africas regional integration and sustainable development.54Annex 1.A.The estimation of Africas sustainable financing gap.66Annex 1.B.Analysis of African lead firms.6

72、7Notes.68References.68Chapter 2.Policies to accelerate sustainable investments for Africa.77In brief.78Increased information and data availability leads to better resource allocation and investor confidence.81Strengthened African-led partnerships can make sustainable finance more effective.86Effecti

73、ve regional integration policies can catalyse sustainable investments at scale.94Annex 2.A.The OECD Policy Framework for Investment and FDI Qualities Policy Toolkit in African countries.100Annex 2.B.Regulatory effectiveness in Africas energy sector.101Annex 2.C.The Pan-African Payment and Settlement

74、 System.102Notes.102References.102Chapter 3.Investing in renewable energies for Southern Africas sustainable development.111In brief.112Southern Africa regional profile.114Southern Africa needs to mobilise more and better investments for sustainable development.115Investments in Southern Africas ren

75、ewable energy potential can generate inclusive and sustainable development.119tAble of contents12AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Public policies can catalyse investments in Southern Africas renewable energy sector.126Notes.133References.133Chapter

76、4.Investing in natural ecosystems for Central Africas sustainable development.141In brief.142Central Africa regional profile.144Despite its unique potential,Central Africa receives fewer sustainable investments than other African regions.145Monetising natural ecosystems will attract more sustainable

77、 investment in Central Africa.149Central African governments have several policy levers to reconcile monetisation and natural ecosystem preservation.159Notes.162References.162Chapter 5.Investing in renewable energies for East Africas sustainable development.169In brief.170East Africa regional profil

78、e.172Diverse investment flows are a major driver of East Africas growth and sustainable development but focus on only a few countries.173Mobilising investments in East Africas renewable energy sector can increase access to clean energy and support productive transformation.176Public policies can imp

79、rove East Africas renewable energy sector and help mobilise investments.184Notes.189References.189Chapter 6.Investing in climate action for North Africas sustainable development.193In brief.194North Africa regional profile.196Sustainable investments remain unevenly distributed in North Africa.197The

80、 financing gap hinders North Africas response to the urgent climate crisis.201Policy levers to support the development of sustainable finance markets in North Africa.207References.210Chapter 7.Investing in agri-food value chains for West Africas sustainable development.215In brief.216West Africa reg

81、ional profile.218Recent crises have dampened investment into West Africa,and sustainable investments target few countries and sectors.219Sustainable investments into the agri-food sector can drive West Africas productive transformation.222Policies supporting the productive transformation of West Afr

82、icas agri-food sector can catalyse sustainable investment.233Notes.240References.240Annex A.Statistical annex.247tAble of contents13AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Figures1.Africas sources of finance and sustainable financing gap,2015-21(USD billio

83、n).232.Components of economic growth in Africa and other world regions,2011-22.253.Greenfield foreign direct investments by world region,as a percentage of world capital expenditure,2010-21(USD billion).264.Responses to the AUC/OECD investor survey question“Which of the following risks have been mos

84、t important for your investments in African countries?”.275.Responses to AUC/OECD investor survey question“Which sources of information should there be more of?”.321.1.Components of economic growth and sources of financing in Africa.421.2.Greenfield foreign direct investment flows to Africa,by activ

85、ity,source and destination,2017-22.421.3.Available financing and sustainable financing gap,2015-21.451.4.Greenfield foreign direct investments by world region,as a percentage of world capital expenditure,2010-21.471.5.Rates of return on foreign direct investment inflows by world region,2011-20.481.6

86、.Responses to the AUC/OECD investor survey question“Which of the following risks have been most important for your investments in African countries?”.491.7.Greenfield foreign direct investment to Africas energy sectors,capital expenditures,2003-21.521.8.Within-sector shares and rates of return of ou

87、tward foreign direct investment from the United States,by investment destination and sector,2017-21.531.9.Cross-border philanthropy inflows by African region and sector,USD million,2016-19.561.10.OECD FDI Qualities Indicators for Africa and other world regions.571.11.Greenfield foreign direct invest

88、ment to Africa by sector and selected sustainability indicators,2003-20.581.12.Local sourcing of inputs by foreign manufacturing firms in selected countries in Africa and Asia,%of total sourcing.591.13.Greenfield foreign direct investment to Africa by source region and sector,%change in capital expe

89、nditures between 2018-19 and 2020-21.611.14.Subsidiaries of listed companies active in Africa,by sector and home region of company group.631.15.Shares of market capitalisation and employment among Africa-based listed companies.631.16.Assets under management of pension funds,2015-20,%of GDP.642.1.Res

90、ponses to AUC/OECD investor survey question:“Which sources of information should there be more of?”.842.2.Responses to AUC/OECD investor survey question:“What major barriers didyou face in ensuring the sustainability of your investments in African countries?”.862.3.Activity on African stock exchange

91、s,2017-21.882.4.Number and capitalisation of operational development finance institutions in developing regions.902.A.1.Targeted policy measures to promote sustainable foreign direct investment in selected countries.1003.1.Components of economic growth and sources of financing in Southern Africa.114

92、3.2.Greenfield foreign direct investment flows into Southern Africa,by activity,source and destination,2017-22.114tAble of contents14AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 20233.3.Greenfield foreign direct investment to Southern Africa,capital expenditures an

93、d job creation,by business activity,2017-21.1163.4.Private finance mobilised through official development assistance in Southern Africa,2012-20,USD million.1173.5.Greenfield foreign direct investment outflows from Southern African countries,by destination regions,2017-21,USD million.1183.6.The ten S

94、outhern African companies with the highest market capitalisation.1183.7.Operations and maintenance jobs created per gigawatt hour by energy source in South Africa.1193.8.Southern Africas greenhouse gas emissions,tonnes of CO2-equivalent per capita,2020.1203.9.Installed electricity capacity in Southe

95、rn Africa,by energy source,2000-21.1213.10.Cumulative public investment flows into renewable and non-renewable energy in Southern Africa,2001-20,USD million.1223.11.Global weighted average total installed costs by energy source,2010-20.1233.12.Access to electricity in Southern Africa,five-year avera

96、ge share of population by location.1243.13.Share of the population with access to clean cooking in Southern Africa,2000 and 2020.1253.14.Share of the population with access to off-grid renewable electricity in Africa and Southern Africa,2010-19.1263.15.Installed electricity capacity and access to el

97、ectricity in Southern African countries,2020-21.1274.1.Components of economic growth and sources of financing in Central Africa.1444.2.Greenfield foreign direct investment flows to Central Africa by activity,source and destination,2017-22.1444.3.Job intensity of investment flows in new projects in C

98、entral Africa,by activity.1464.4.GHG emissions in Central Africa,by sector.1474.5.Non-combustion electricity and heat production in Central Africa and the world,2020.1474.6.Greenfield foreign direct investment outflows from Central African countries,by destination regions,2017-21,USD million.1494.7.

99、Land and inland water use in Central Africa.1504.8.Distribution of natural capital as a percentage of national wealth(excluding external assets),2018.1514.9.The worlds two largest carbon sinks,in Central Africa and the Amazon rainforest,are in decline.1534.10.Protected areas in Central Africa(percen

100、tage of national area),by country.1564.11.Climate-related financing received by Central Africa,2019-20 average.1575.1.Components of economic growth and sources of financing in East Africa.1725.2.Greenfield foreign direct investment flows into East Africa,by activity,source and destination,2017-22.17

101、25.3.Greenfield foreign direct investment to East Africa,capital expenditures and job creation,by business activity,2017-21.1745.4.Private finance mobilised through official development finance in East Africa,2012-20.1745.5.Greenfield foreign direct investment outflows from East African countries,by

102、 destination region,2017-21,USD million.1755.6.Installed electricity capacity and access to electricity in East Africa by source,2000-22.177tAble of contents15AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 20235.7.Installed electricity capacity from renewable energy

103、sources in 2021,by country.1775.8.Percentage of the population in East Africa with access to clean cooking,2000 and 2020.1785.9.Top six East African countries with public investments in renewable energy sources,2001-20,USD million.1796.1.Components of economic growth and sources of financing in Nort

104、h Africa.1966.2.Greenfield foreign direct investment flows to North Africa,by activity,source and destination,2017 22.1966.3.Private finance mobilised by public development finance interventions in North Africa,2012-20(USD million).1986.4.Greenfield FDI in North Africa,capital expenditure,and job cr

105、eation by business activity,2017-21.1986.5.CO2 emissions and investments in the energy sector in North Africa.1996.6.Greenfield foreign direct investment outflows from North African countries,by destination regions,2017-21,USD million.2006.7.Climate finance received by North Africa,2019-20 average.2

106、046.8.Green bond issuance in Africa,2014-21(USD million).2067.1.Components of economic growth and sources of financing in West Africa.2187.2.Greenfield foreign direct investment flows into West Africa,by activity,source and destination,2017-22.2187.3.Sectoral job creation of greenfield foreign direc

107、t investment and greenhouse gas emissions for economic activities in West Africa.2207.4.Allocation of official development assistance and philanthropic inflows to West Africa.2207.5.Private finance in West Africa mobilised through official development finance by sector,USD billion,2012-20.2217.6.Gre

108、enfield foreign direct investment outflows from West African countries,by destination regions,2017-21,USD million.2227.7.Imports and exports of primary and processed food and beverage products for West African countries,2010-21,USD million.2237.8.Gross value of agricultural and cereal production in

109、West Africa,1985-2020,constant 2014-16 USD.2247.9.Financing provided to West Africas agriculture,forestry and fishing sector through various formal channels,compared to gross fixed capital formation,2010-21.2267.10.Development flows into West Africas agro-industry and general environmental protectio

110、n,2010-20,USD million constant 2020.228Tables1.Africas main sources of financing and their potential for promoting sustainable development.282.Investing in Africas sustainable development:Three main policy agendas for the continent.303.Investing in Africas sustainable development:Policy recommendati

111、ons by region.314.Policy recommendations to enhance information and data availability.311.1.Allocation of selected sources of institutional investment to world regions.461.2.Africas external and domestic potential sources of sustainable finance.551.3.Examples of spillovers from foreign to domestic f

112、irms.59tAble of contents16AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 20231.4.The top ten Africa-based listed companies by market capitalisation.621.5.Examples of sustainable investment projects by African sovereign wealth funds.651.A.1.Calculation of Africas sust

113、ainable financing gap in 2020.662.1.Policy actions for mobilising and allocating sustainable investments,mapped against challenges.802.2.Policy actions and examples for enhancing information and data availability.822.3.Policy actions and examples for strengthening African-led institutions and partne

114、rships for sustainable finance.872.4.Policy actions and examples for regional integration and harmonisation.952.5.Examples of policy tools to promote linkages between multinational enterprises and local SMEs.972.6.Examples of monitoring mechanisms of regional trade and investment policies.993.1.Rene

115、wable energy targets in national policies of selected Southern African countries.1283.2.Examples of policy instruments to promote private investments in renewable energy in Southern African countries.1304.1.Regional integration indices in Central Africa in 2019.1484.2.Ecosystem services listed in th

116、e Common International Classification of Ecosystem Services(CICES).1524.3.Cumulative total of green bonds by region,in descending order of value,2014-22.1554.4.Sequestered carbon standards and certifications used in REDD+project compensation.1585.1.Barriers to renewable energy investments in East Af

117、rica for different types of investors.1805.2.Examples of innovative enterprises and their business models in East Africas renewable energy sector.1825.3.Priority policy recommendations for clusters of East African countries.1845.4.Examples of policies to enhance institutional capacity and regulatory

118、 frameworks in renewable energies in East Africa.1855.5.Regulatory frameworks in East Africas renewable energy sector.1855.6.Examples of policies to strengthen local financial systems to mobilise and channel resources for renewable energy projects in East Africa.1865.7.Examples of policies to facili

119、tate the emergence and regional upscaling of innovative enterprises in East Africas renewable energy sector.1886.1.Classification of North African countries according to the Physical Vulnerability to Climate Change Index,1950-2016.2016.2.NDCs from North African countries.2026.3.Selection of financia

120、l instruments to mobilise sustainable financing.2067.1.Top 15 agricultural products in West Africa by production volume,2019-21.2247.2.Domestic credit,development finance disbursements and gross fixed capital formation in the agriculture,forestry and fishing sector,Africa and West Africa,2010-20.227

121、7.3.Investment promotion tools in the agricultural sector.237Boxes1.1.Agenda 2063 and sustainable investments:This reports approach.431.2.The influence of credit rating agencies on the cost of capital in Africa.501.3.Africas renewable energy sector and the high cost of capital.51tAble of contents17A

122、FRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 20231.4.Risk mitigation strategies used by infrastructure investors.531.5.Africas external sources of sustainable finance.551.6.OECD FDI Qualities Indicators in Africa.571.7.Sustainable investments in African small and me

123、dium-sized enterprises:Coupling financing with impact assessments.602.1.Debt transparency in Africa.832.2.Creating investment opportunities in Portuguese-speaking African countries.902.3.Strengthening information sharing and financial allocation between export credit agencies.912.4.Designing innovat

124、ive investment products:Insights from inclusive bonds.932.5.Africas regional development corridors.962.6.Alliance for Product Quality in Africa.983.1.Access to clean cooking in Southern Africa.1243.2.The Africa Clean Energy Corridor.1293.3.Policy initiatives to scale up off-grid renewable energy pro

125、jects in Mozambique.1314.1.Ecosystem services:Concept and method of economic evaluation.1524.2.Gabons forests in the Gabonese Fund for Strategic Investments(FGIS).1545.1.Solar energy and clean cooking programmes targeting rural areas.1836.1.Comparing the results of the United Nations Climate Change

126、Conferences(COP)held in North Africa.2057.1.The promise of the infant food value chain in Africa.2257.2.Poultry production and processing in West Africa.2277.3.West Africas cassava value chain.2307.4.The role of public-private alliances in improving value addition in Senegals rice production.2367.5.

127、Shrimp farms in Cabo Verde.23919AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Abbreviations and acronymsACECAfrica Clean Energy CorridorACETAfrican Center for Economic TransformationAfCFTAAfrican Continental Free Trade AreaAfDBAfrican Development BankAFSFAfrica

128、Food Security FundASEANAssociation of Southeast Asian NationsAUAfrican UnionAUCAfrican Union CommissionAUDA-NEPADAfrican Union Development Agency-New Economic Partnership forAfricas DevelopmentBGFABeyond the Grid Fund for AfricaBMZBundesministerium fr wirtschaftliche Zusammenarbeit und Entwicklung(F

129、ederal Ministry for Economic Co-operation and Development)CAADPComprehensive Africa Agriculture Development ProgrammeCAAPCommon African Agro-Parks ProgrammeCAFICentral African Forest InitiativeCAPEXCapital expenditureCFCCommon Fund for CommoditiesCFFClimate Finance FacilityCOPUnited Nations Conferen

130、ce of the PartiesCOSUMAFCentral African Financial Market Supervisory CommissionCRACredit rating agencyCSAClimate-smart agricultureDFIDevelopment finance institutionDSSIDebt Service Suspension InitiativeEACEast African CommunityEAPPEastern Africa Power PoolECCASEconomic Community of Central African S

131、tatesECOWAPEconomic Community of West Africa Agricultural PolicyECOWASEconomic Community of West African StatesEFFECTEquitable Framework and Finance for Extractive-Based Countries inTransitionESGEnvironmental,Social and GovernanceEUEuropean UnionFDIForeign direct investmentFiTFeed-in-TariffGDPGross

132、domestic productGFCGlobal Climate FundGFCFGross fixed capital formationGHGGreenhouse gasGIZGesellschaft fr Internationale Zusammenarbeit(German Corporation forInternational Co-operation)ICTInformation and communications technologyIDAInternational Development AssociationIEAInternational Energy Agency

133、IFADInternational Fund for Agricultural Development20AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023AbbreviAtions And Acronyms20AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023IFCInternational Finance CorporationIFSWFInternatio

134、nal Forum of Sovereign Wealth FundsIMFInternational Monetary FundIPAInvestment promotion agencyIPOInitial public offeringIPPIndependent power producerISOInternational Organization for StandardizationKPIKey performance indicatorLACLatin America and the CaribbeanNAIPNational agricultural investment pl

135、anNDCNationally determined contributionODAOfficial development assistanceOECDOrganisation for Economic Co-operation and DevelopmentPAAPPan-African Auto PactPALOPPases Africanos de Lngua Oficial Portuguesa(Portuguese-speaking African countries)PAPSSPan-African Payment and Settlement SystemPFIPolicy F

136、ramework for InvestmentPIDAProgramme for Infrastructure Development in AfricaPPFProject Preparation FacilityREDD+Reducing emissions from deforestation and forest degradationREEESAPRenewable Energy and Energy Efficiency Strategy and Action PlanREFiTRenewable Energy Feed-in TariffSADCSouthern African

137、Development CommunitySDGSustainable Development GoalsSDRSpecial Drawing RightSEFASustainable Energy Fund for AfricaSEZSpecial economic zoneSMESmall and medium-sized enterpriseSWFSovereign wealth fundUNUnited NationsUNCTADUnited Nations Conference on Trade and DevelopmentUNECAUnited Nations Economic

138、Commission for AfricaUNIDOUnited Nations Industrial Development OrganizationWAICSAWest African Initiative for Climate-Smart Agriculture21AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Executive summaryAfricas sustainable financing gap until 2030 is about USD 1.6

139、trillion.According to this reports estimates,the continent needs additional financing of about USD194 billion annually to achieve the Sustainable Development Goals by 2030.This annual sustainable financing gap is equivalent to 7%of Africas gross domestic product(GDP)and 34%of its investments in 2021

140、.The annual gap equals less than 0.2%of the global and 10.5%of the African-held stock of financial assets.African economies hold unique assets to close the continents sustainable financing gap:Real GDP growth is estimated to return to the levels before COVID-19,at 3.7%in 2023,the second highest rate

141、 in the world after developing Asia(5%)and before Latin America and the Caribbean(1.6%).The growth is estimated at 4.9%in East Africa,4.3%in Central Africa,4%in North Africa,3.8%in West Africa and 1.4%in Southern Africa.The proportion of African youth completing an upper-secondary or tertiary educat

142、ion could reach 34%by 2040,up from 23%in 2020 and 18%in 2010.Africa has the worlds youngest population,with a median age of 19years,compared to 30 for Latin America and the Caribbean,31 for developing Asia and 42 for Europe.Natural resources represent key assets for African economies.Natural capital

143、 accounts for 19%of Africas total wealth compared to 7%for Latin America and the Caribbean and 3%for developing Asia.From 2011 to 2020,African forests increased the global carbon stock by 11.6million kilotons of CO2-equivalent net emissions,while carbon stocks in forests outside Africa declined by 1

144、3 million kilotons.Africas domestic financial resources hold a large potential for sustainable development.Domestic government revenues amounted to USD 466 billion in 2021,equivalent to 17%of GDP,and assets held by African institutional investors amounted to USD1.8trillion in 2020,equivalent to 73%o

145、f GDP.During the COVID-19 pandemic in 2020-21,intra-Africa foreign direct investment was three times more resilient than foreign direct investment from outside the continent,boosting growth in renewable energies and in information and communications technology.Despite this potential,global crises ar

146、e affecting investment in Africa more than in other regions.The average inflation rate for the continent is projected to reach 15.5%in 2023 the highest level in 27years with peaks above 15%in 11African countries.As of February2023,8African countries were in debt distress(out of 9 globally),and 13 we

147、re at a high risk of debt distress(out of 27 globally).Africas share of global greenfield foreign direct investment has been on a downward trend in recent years,dropping to 6%in 2020-21 (the lowest share in 17years),while high-income countries in other parts of the world have recorded their highest

148、share ever(61%),compared to 17%for developing Asia and 10%for Latin America and the Caribbean.The cost of capital in Africa has risen above the levels in other world regions,pricing some African governments out of bond markets while thwarting investments in transformational sectors such as renewable

149、 energy.The spread on an average African Eurobond(a measure for the potential cost of sovereign borrowing)reached a 15-year high of about 10percentage points in September2022,eclipsing previous peaks.In 2021,the average cost of capital for energy projects was about seven times higher in Africa than

150、in Europe and North America.While experienced investors attain higher average returns in Africa than in other world regions,the lack of reliable information and data is an important barrier to new investments.To increase resilience to external shocks and improve investor confidence,African policy ma

151、kers can work with international partners and African civil society to mobilise investments towards Agenda 2063 and sustainable development.The international executive summAry22AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023community must follow through on commit

152、ments on debt restructuring and climate finance.African governments,development partners,the private sector and civil society must work closer together to improve Africas investment landscape.This report proposes three key policy priorities to accelerate sustainable investments on the continent:More

153、 and better data will reduce transaction costs,improve sustainability assessments and increase investor confidence.In 2021,less than a third of African countries(30%)had a fully funded statistical plan,compared to almost half the countries in Latin America and the Caribbean(44%)and in developing Asi

154、a(47%).Improved macroeconomic data may help align risk perception with real risks.Partnerships with business associations or academic institutions can allow government agencies to share industry data that inform investors risk assessments at lower cost.African governments can also facilitate sustain

155、ability assessments through disclosure requirements and the provision of training and incentives to smaller firms with limited capacity.Strengthening the capacity of Africas large development finance network will improve the allocation of sustainable finance.The 102 African development finance insti

156、tutions(DFIs)can act as intermediaries between international finance and local projects,in line with national development agendas.The international community can channel more resources to well-managed DFIs and deliver on existing obligations,for instance,by increasing the allocation of climate adapt

157、ation finance.African governments and DFIs can also scale up the use of innovative de-risking and financing tools,including green,social,sustainability,and sustainability-linked bonds or local currency financing solutions emerging in many countries.Developing and interconnecting capital markets and

158、stock exchanges will contribute to the growth of African firms.Regional integration policies will improve and harmonise Africas investment landscape.Cross-border initiatives such as development corridors and digital infrastructures can reduce trade frictions and market fragmentation.At the same time

159、,small and medium-sized enterprises need targeted support to seize investment opportunities along regional value chains.The African Continental Free Trade Area(AfCFTA)Investment Protocol aims to harmonise the African investment policy landscape but requires effective monitoring mechanisms and public

160、-private alliances.The five regional chapters of this report highlight how African regions can accelerate sustainable investments in strategic sectors.African regions can better leverage their unique assets to accelerate sustainable development and productive transformation.Regional case studies pro

161、pose ways of operationalising the continental policy recommendations in specific sectors.Policy recommendations to accelerate sustainable investments in African regionsRegionCase studyPolicy recommendationsSouthern AfricaRenewable energies Harmonise regulatory frameworks and accelerate regional init

162、iatives on renewable energy infrastructures Enhance public-private alliances and development finance based on national energy priorities Adopt targeted policy solutions to scale up off-grid renewable energy projects in rural areasCentral AfricaNatural ecosystems Improve natural capital accounting to

163、 better inform investors and stakeholders Establish institutional frameworks for the monetisation of natural ecosystems Ensure local ownership when developing innovative financing mechanismsEast AfricaRenewable energies Enhance regulatory frameworks and energy utilities capacity to improve investor

164、confidence Strengthen local financial institutions to catalyse resources for renewable energy projects Support the growth of innovative enterprises through regional integration policies like the AfCFTANorth AfricaClimate finance Improve assessment of financing needs based on national and multi-secto

165、rial priorities Adopt and implement inclusive regulatory frameworks on sustainable finance Encourage the development of sustainable finance markets(nationally and regionally)West AfricaAgri-food value chains Increase smallholder farmers access to financial products focused on productivity and sustai

166、nability Strengthen regional agricultural policies and place-based programmes like agro-industrial parks Support food security and agricultural practices through agro-poles,incubators and technical partnerships23AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Over

167、viewThe African continent offers large untapped potential for sustainable investmentsSustainable investments are essential for Africas economic,social and environmental development.Investments are sustainable if their economic,social and environmental benefits outweigh their total cost.When mobilisi

168、ng and allocating investments,African countries need to manage tensions between economic,social and environmental goals such as productive transformation,social inclusion and resilience to climate change.This includes balancing energy production and carbon mitigation,developing agricultural land use

169、 and conserving ecosystems,or creating mass employment while promoting labour standards.The Africas Development Dynamics 2023 report provides an evidence-based analysis of Africas investment landscape and identifies important investment-related policies that promote sustainable development on the co

170、ntinent as a whole and in each of its five regions.Africas sustainable financing gap can be bridgedAt about 7%of the continents gross domestic product(GDP),Africas sustainable financing gap is small in comparison to its financial resources and to those available worldwide.This gap between the financ

171、ing needed to achieve the Sustainable Development Goals and the availability of financial resources averaged USD194billion annually for 2015-21(Figure 1).This sum equals 34%of Africas investments in 2021(gross fixed capital formation,defined as the acquisition of produced assets).The amount appears

172、small relative to capital available:it is equivalent to less than 0.2%of the global and 10.5%of the African-held stock of assets under management financial assets that wealth management firms handle on behalf of investors.A hypothetical annual reallocation of just 0.2%of global assets under manageme

173、nt would bring their total allocation to Africa from currently under 1%to around 2.3%by 2030.This amount would still remain below the continents share of global GDP(2.9%in 2020).Figure1.Africas sources of finance and sustainable financing gap,2015-21(USD billion)0100200300400500600700800201520162017

174、2018201920202021USD billionGovernment revenuesCapital inflowsRemittancesOfficial development assistanceSustainable financing gapSource:Authors calculations based on OECD(2022a),Global Outlook on Financing for Sustainable Development 2023,https:/doi.org/10.1787/fcbe6ce9-en and other sources.See Annex

175、1.A for details on data sources and methodology.12 https:/stat.link/xcpd4fOverview24AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Africas financing shortfall has recently increased due to the COVID-19 pandemic,the global repercussions of conflicts and climate ch

176、ange.Government revenues decreased due to the COVID-19 pandemic:in 2020,Africas average tax-to-GDP ratio declined by 0.3percentage points to 16.0%(OECD/ATAF/AUC,2022).International conflicts have led to disruptions in supply chains,affecting critical imports(food,energy and fertilisers).Climate fina

177、ncing needs have consistently not been met:between 2019 and 2020,USD11.4billion of Africas total climate financing went to adaptation almost five times less than the USD 53 billion per year set under the nationally determined contributions of the Paris Agreement(GCA,2022).Global uncertainty and infl

178、ation have escalated the costs of debt for most African countries.Debt levels have risen across Africa over the past decade,with the cost of debt service rising from 3%to over 5%of gross national income over the 2010-20 period.More recently,crisis-induced global uncertainty led to risk repricing.The

179、 average inflation rate for the continent is projected to reach 15.5%in 2023 the highest level in 27years with peaks above 15%in 11African countries.The increase in borrowing costs for African countries excluded countries with lower credit ratings from international capital markets and prevented deb

180、t refinancing(IMF,2023a).For instance,Eurobond yields multiplied from 2021 to 2022 for many African countries,and the spread on an average African Eurobond(a measure for the potential cost of borrowing on capital markets)across 20countries reached a 15-year high of about 10percentage points in Septe

181、mber 2022,eclipsing previous peaks of the COVID-19 crisis in 2020 and the global financial crisis in 2008(Smith,2022).Between April2022 and April2023,no African country has been able to issue new Eurobonds(IMF,2023a).As of February2023,the International Monetary Fund(IMF)considered 8African countrie

182、s in debt distress and 13 more at a high risk of debt distress(IMF,2023b).With unique assets,African countries represent the worlds investment frontierAfrica has enjoyed high growth supported by investment,but the continent needs more transformative,sustainable growth.Since the turn of the 21st cent

183、ury,Africa has boasted the worlds second-highest rate of economic growth after developing Asia.African growth is bouncing back since the global recession of 2020:real growth is projected at 3.7%in 2023 and 4.2%in 20241 after developing Asia and before Latin America and the Caribbean,respectively at

184、5.0%and 1.6%in 2023 and 4.9%and 2.2%in 2024.High investment rates boosted Africas growth,with the contribution of gross fixed capital formation to GDP growth reaching a peak of 1.2percentage points in 2017-19,before declining during the COVID-19 pandemic in 2020-22(Figure2).Overall,growth has not le

185、d to the needed productive transformation,including job creation and value chain integration(AUC/OECD,2018,2019,2022).Overview25AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Figure2.Components of economic growth in Africa and other world regions,2011-22-3-2-1012

186、3456782011-132014-162017-192020-222011-132014-162017-192020-222011-132014-162017-192020-222011-132014-162017-192020-22AfricaLatin America and theCaribbeanAsia(no high-incomecountries)High-income countries(excluding LAC)Final consumptionGross fixed capital formationInventoriesForeign balanceReal GDP

187、growthPercentage points of GDPA.Components of three year change in GDP,by expenditure,2011Note:See note under Figure 1.1 in Chapter 1.Sources:Authors calculations based on IMF(2022),World Economic Outlook Database,October 2022 Edition,www.imf.org/en/Publications/WEO/weo-database/2022/October.12 http

188、s:/stat.link/14zp78The African continent holds unique human and natural capital for sustainable investment.Africa has the worlds youngest population,with a median age of 19 years,compared to 30 for Latin America and the Caribbean,31 for developing Asia and 42 for Europe.By 2050,Africas population wi

189、ll almost double,from about 1.4 billion inhabitants to nearly 2.5 billion.More than half of the worlds population growth will happen on the continent(AfDB/OECD/UNDP,2015;UN DESA,2022).The proportion of African youth completing an upper-secondary or tertiary education could reach 34%by 2040,up from 2

190、3%in 2020 and 18%in 2010(AUC/OECD,2021).From 2011 to 2020,African forests increased carbon stock by 11.6million kilotons of CO2-equivalent net emissions,while carbon stocks in forests outside Africa declined by 13million kilotons.Of this increase,59%was in Central African forests,now recognised as t

191、he worlds largest carbon sink(FAO,2022).The continent boasts 60%of the best solar resources globally(IEA,2022).Natural capital accounts for 19%of Africas total wealth,compared to 7%for Latin America and the Caribbean and 3%for developing Asia(World Bank,2021).Risk perceptions and information shortag

192、es have lowered investor confidence and increased the cost of capital in Africa more than in other world regionsDespite its potential,Africa attracts the lowest share of capital from institutional investors,compared to other world regions.In 2017-18,global pension funds and insurance companies alloc

193、ated only 0.5%of their capital to African assets,compared to 1.2%for Latin America and the Caribbean and 4.2%for developing Asia.Africas share of global investment capital has remained low(below 1%),even though global assets under management grew from USD48trillion in 2010 to over USD 112 trillion i

194、n 2021,despite economic downturns(BCG,2022).Africas share of global foreign direct investment(FDI)and participation in global value chains have stagnated.In the last decade,global greenfield FDI i.e.announced FDI projects that create new production facilities instead of acquiring existing ones has d

195、ecreased at an average rate of 3%per year.Moreover,since 2016,new investments Overview26AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023have been shifting from developing countries to high-income countries(Figure3).The COVID-19 pandemic accelerated this trend:in 2

196、020-21,high-income countries outside of Latin America and the Caribbean attracted 61%of global greenfield FDI(the highest share ever recorded),compared to 17%for developing Asia,10%for Latin America and the Caribbean and only 6%for Africa(the lowest share since 2004).Similarly,Africas participation

197、in global value chains has stagnated since the 2008 global financial crisis:it was only 1.7%in 2019(AUC/OECD,2022).Figure3.Greenfield foreign direct investments by world region,as a percentage of world capital expenditure,2010-21(USD billion)0 300 600 9001 200020406080%USD billionTotal world capital

198、 expenditure(right-hand side)AfricaAsia(no high-income countries)High-income countries(no LAC)Latin America and the CaribbeanNote:LAC=Latin America and the Caribbean.Source:Authors calculations based on fDi Intelligence(2022),fDi Markets(database), https:/stat.link/yr8mj9Risks and information shorta

199、ges persist as barriers to investment mobilisation in many African countries.Representatives of global multinational enterprises surveyed and interviewed for this report emphasised macroeconomic risks,policy instability and the lack of regulatory capacity as persisting barriers to their investments

200、in African countries(Figure4).Yet,some highlighted that investors with in-country experience can generate higher rates of return in Africa compared to other world regions.An overall lack of information inhibits assessments of investment opportunities in African markets:limited information and data m

201、ay result in delays(investors“wait and see”)and amplify“perception premiums”.Overview27AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Figure4.Responses to the AUC/OECD investor survey question“Which of the following risks have been most important for your investm

202、ents in African countries?”0102030405060708090100Stakeholder perception risksLegal risksOperational risksCurrency risksTechnical policy and regulatory risksPolitical risksMacroeconomic risks%Highly importantSomewhat importantNeutralUnimportantNot important at allNote:n=52 to 55.The AUC/OECD survey w

203、as administered in September 2022 to the networks of African business councils and the EU-Africa Business Forum.For further information,see Figure1.6 in Chapter1.12 https:/stat.link/vu9l0wThe poor credit ratings of many African countries may overestimate risks and result in excessive cost of capital

204、.As of December2022,leading global credit rating agencies gave investment-grade ratings only to Botswana and Mauritius,followed by Cte dIvoire,Morocco and South Africa in the non-investment grade speculative category(Trading Economics,2022).Credit rating agencies may lack detailed data and insights

205、on African countries.A recent UNDP(2023)study compared neutral model-based ratings with those issued by credit rating agencies,estimating that the latter led to higher interest rates and dampened investment mobilisation,creating a total opportunity cost of up to USD74.5billion for African countries.

206、Country credit ratings also serve as a benchmark for private debt holders,thereby affecting the cost of private capital as well(e.g.interest rates and longevity of loans).The high cost of capital has been a barrier to investment mobilisation especially in sectors where large upfront capital expendit

207、ures are required.This is the case in the energy sector where,in 2021,the weighted average cost of capital in Africa was about seven times higher than in Europe and North America(IEA,2022).Better allocating existing sources of finance can support Africas regional integration and sustainable developm

208、entAfricas external and domestic sources of finance show untapped potential to drive sustainable investments on the continent.Table1 examines strengths and weaknesses of some of Africas major potential sources of sustainable investments.The potential of FDI and remittances to contribute to sustainab

209、le growth remains underexploited due to limited integration with productive activities on the continent.Official development assistance(ODA)showed resilience during the COVID-19 pandemic but remains below pledged levels.Sustainability-oriented private investments such as impact investing and philant

210、hropy still have limited scale and impact,while being prone to specific sectoral and country biases.Among domestic sources of investment,regional multinational enterprises and institutional investors offer untapped potential to support sustainable and resilient growth.Government revenues represent t

211、he largest source of finance in most countries,but their allocation towards sustainability objectives remains limited and insufficiently reported.Mobilising domestic resources is necessary to widen the fiscal Overview28AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2

212、023space of national governments and reduce debt burdens,as well as attract sustainable investments from the private sector.Table1.Africas main sources of financing and their potential for promoting sustainable developmentSourcesAmounts%of Africas GDPStrengthsWeaknessesExternalForeign direct investm

213、entUSD 83 billion 2.6%GDP(2021)Productivity spillovers for local suppliers;training for the local workforceLimited alignment with sustainable development;spillovers reliant on effective linkages;vulnerable to shocksRemittancesUSD 96 billion 3.8%GDP(2021)Connections with local economies and the infor

214、mal sectorLimited co-ordination of funds;limited focus on productive transformationOfficial development assistanceUSD 65 billion 2.5%GDP(2021)Resilience to global shocks;focus on social and ecological sustainabilityRemaining below pledges;limited mobilisation of private investments in low-income cou

215、ntriesGlobal impact investorsUSD 24.3 billion 1.0%GDP(2019)(assets under management allocated to Africa)Focus on transformative sectors(e.g.energy,finance,and small and medium-sized enterprises)Focus on large and more advanced economiesPrivate philanthropyUSD 2.1 billion 0.1%GDP(2018-19)Focus on soc

216、ial sectors(e.g.health and education)Relatively small amounts;not targeting the poorest countriesDomesticGovernment revenuesUSD 466 billion 16.7%GDP(2021)Largest source of financing in most countries;resilient towards international monetary conditionsCountry-specific challenges;decreases in revenue

217、on a real per-capita basis;limited data on allocation towards sustainable developmentMultinational enterprises based in AfricaUSD 2.7 billion 0.1%GDP(2021)(FDI outflows)Regional footprint;resilience to global shocksLimited amounts of financing;risk of reinforcing regional inequalitiesDomestic instit

218、utional investorsUSD 1.8 trillion 73.3%GDP(2020)(assets under management held in Africa)Vast financial resources;embedded in local financial marketsRisk aversion;limited investments in sustainable assetsNote:“Amounts”refers to financial flows during the reference period with the exception of“Global

219、impact investors”and“Domestic institutional investors”,which refer to end-of-period stocks(assets under management).Financial sources may overlap and cannot be aggregated.Global impact investors(GIIN,2020)and private philanthropy(OECD,2021a)are considered external sources of finance,as they mostly o

220、riginate outside the African continent.Source:Authors compilation based on various sources.For further information,see Table 1.2 in Chapter1.External financial inflows represent important sources of finance for development on the African continent(Figure1),but their sustainable development impacts r

221、emain limited.In 2021,FDI and remittances remained the largest external financial flows(6.4%of Africas GDP);but their potential to promote sustainable development remains underexploited.For example,USD 1 million in FDI creates 14 jobs in textiles,10 in electronic equipment and 9 in automotive,but th

222、ese job-intensive sectors attracted only 4.5%of greenfield FDI to African countries over 2003-20.ODA increased in response to COVID-19 but remained at about 0.36%of donor countries gross national income well below the pledged level of 0.7%set by the 2030 Agenda for Sustainable Development.In 2022,bi

223、lateral ODA to Africa declined by 7.4%compared to the previous year,despite a general increase at the global level(OECD,2023).Moreover,ODA shows specific sectoral and country biases:while private finance mobilised through ODA grew fivefold in Africa between 2012 and 2020(from only USD 4 billion to U

224、SD 22 billion),less than 30%of the amounts mobilised targeted low-income countries(OECD,2022b).Sustainability-oriented private investments(impact investing and philanthropy)are still small and unbalanced.For example,Southern Africa has a GDP(purchasing Overview29AFRICAS DEVELOPMENT DYNAMICS 2023:INV

225、ESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023power parity)per capita three times larger than Central Africa but,over 2016-19,received over four times more philanthropic inflows per capita.FDI with linkages to local economies and suppliers can contribute to sustainable development.While effects can

226、 take time to materialise,FDI can enhance growth and innovation in the host country(Diallo,Jacolin and Rabaud,2021;OECD,2022c).Our analysis of firm-level data from the World Bank Enterprise Surveys shows that,on average,foreign firms operating in African countries rely less on inputs sourced from lo

227、cal suppliers than their peers in Asia,notably in agro-processing and manufacturing.Mobilising diaspora investment can help develop local production.Between 20%and 30%of global remittances target economic activities(IFAD/World Bank,2015).Diaspora investments are well-placed to support local producti

228、on networks as most diaspora investors tend to establish more connections with local suppliers(Amendolagine et al.,2013).However,most of these investments are channelled towards informal activities(Asquith and Opoku-Owusu,2020).Structured diaspora investment products could tap into the estimated USD

229、 33.7 billion annual diaspora savings(Faal,2019).Careful planning,regulatory approval in host countries and competitive pricing are key for successful African diaspora bond initiatives(AUC/OECD,2021).Intra-African greenfield FDI was more resilient to global shocks than FDI from outside Africa,and it

230、 has room to grow.From 2017 to 2021,intra-African FDI flows accounted for only 9%of total greenfield FDI to African countries.It showed resilience during the COVID-19 pandemic:in 2020-21,intra-African greenfield FDI decreased by 20%compared to 2018-19,while the drop in greenfield FDI from outside th

231、e continent was about 3 times more(-58%).Africa-based investors have increased new investment projects in ICT,renewable energies and metals(fDi Intelligence,2022).Analysis of firm-level data from the Orbis database highlights that the vast majority(69%)of Africa-based listed companies is active in g

232、rowing service-oriented sectors such as financial services(29%),retail(8%),real estate(6%),and information and communication technologies(6%).Assets held by African institutional investors have grown rapidly,with much potential for investments in sustainable economic activities.According to estimate

233、s,in 2020,African institutional investors had assets under management of about USD1.8trillion,a 48%increase from 2017(Juvonen et al.,2019).OECD data show that pension funds across 15African countries accumulated USD380billion of assets by 2020,with South Africa accounting for almost 80%of the total(

234、OECD,2021b).This translates into an average GDP share of 25%for Africa(mostly driven by South Africa,Namibia and Botswana),compared to 22%in Latin America and the Caribbean and 3%in developing Asia.Yet,alternative assets such as infrastructure,real estate,green and sustainable assets,private equity,

235、and venture capital accounted for less than 3%of portfolios in an assessment of five African pension markets,namely Ghana,Kenya,Namibia,Nigeria and South Africa(AfDB/IFC/MFW4A,2022).Half of the major African pension funds state that sustainability is an important goal of their investments;however,th

236、ey share limited information on their sustainability strategies(Stewart,2022).This mirrors global trends among institutional investors(OECD,2021c).Better data,African-led partnerships and regional policies can accelerate sustainable investments across the continentWhich policies can help African cou

237、ntries mobilise greater investments and allocate them towards Agenda 2063 and priorities for sustainable development?Effectively allocating existing African financial and fiscal resources towards sustainability outcomes Overview30AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT

238、 AUC/OECD 2023offers the largest potential.While the international community needs to meet its sustainable finance obligations towards developing countries,African governments,the private sector and civil society must work closer together to attract more sustainable investments into African economie

239、s.This report proposes three main policy priorities to accelerate sustainable investments on the continent(Table2).Table2.Investing in Africas sustainable development:Three main policy agendas for the continentChallengePolicy agendaPolicy actionLow investor confidence and high cost of capitalInformi

240、ng risk assessments and sustainability measurementsEnhance national statistical capacity for country risk assessmentsInform investor due diligence and project risk assessments with detailed dataSupport locally adapted sustainability frameworks and data collectionAfrican-led partnerships to deliver o

241、n frameworks and toolsDeepen regional capital markets to support African corporate growth and broaden the availability of financial products for investorsFrameworks needed to explore African assets and steer investments towards sustainable developmentIncrease the capacity of local financial institut

242、ions to align sustainable finance with national prioritiesAdapt and expand innovative financing instruments fit for local contextsRegional integration to widen impactsHarmonise policies,improve digital infrastructures and development corridorsProvide support for small and medium-sized enterprises to

243、 integrate into regional value chainsEnsure effective implementation of the African Continental Free Trade Area Investment ProtocolAfrican regions can better leverage their assets to accelerate productive transformation and sustainable development.The reports five regional chapters highlight how Afr

244、ican regions can accelerate sustainable investments in strategic sectors(see Table 3 and Chapters 3-7).Case studies propose ways of operationalising the continental policy recommendations presented in Table 2 in specific sectors and regions while suggesting how productive transformation and sustaina

245、ble development outcomes can be mutually reinforcing.Southern Africa accounts for about 60%of Africas installed solar energy capacity,while the Rift Valley in East Africa holds the continents richest geothermal potential.The renewable energy sector offers these regions opportunities to combine energ

246、y security and climate mitigation with job and enterprise creation.Central Africas forests contain 62%of the continents biomass carbon stock,or 11%of the global stock.Preserving the regions natural ecosystems promises both financial and ecological gains.Climate-related blended finance to North Afric

247、a increased by a factor of 4.9,from an average of USD91million over the period 2012-16 to USD447million in 2017-21,compared to a factor of 2.4 for developing Asia and 3.4 for Latin America and the Caribbean.Harmonised and deepened institutional frameworks on such financial instruments can help the r

248、egion mobilise the funds needed for effective climate adaptation.Agriculture,forestry and fishing value added in West Africa was 24.4%of GDP in 2021,compared to 16.5%for Africa and 4.3%for the world.Upgrading the regions supply chains for processed food products would reduce imports and informality

249、in the sector.Overview31AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Table3.Investing in Africas sustainable development:Policy recommendations by regionRegionCase studyPolicy recommendationsSouthern AfricaRenewable energies Harmonise regulatory frameworks and

250、accelerate regional initiatives on renewable energy infrastructures Enhance public-private alliances and development finance based on national energy priorities Adopt targeted policy solutions to scale up off-grid renewable energy projects in rural areasCentral AfricaNatural ecosystems Improve natur

251、al capital accounting to better inform investors and stakeholders Establish institutional frameworks for the monetisation of natural ecosystems Ensure local ownership when developing innovative financing mechanismsEast AfricaRenewable energies Enhance regulatory frameworks and energy utilities capac

252、ity to improve investor confidence Strengthen local financial institutions to catalyse resources for renewable energy projects Support the growth of innovative enterprises through regional integration policies like the African Continental Free Trade Area and the East African Economic CommunityNorth

253、AfricaClimate finance Improve assessments of financing needs based on national and multi-sectorial priorities Adopt and implement inclusive regulatory frameworks on sustainable finance Encourage the development of sustainable finance markets(nationally and regionally)West AfricaAgri-food value chain

254、s Increase smallholder farmers access to financial products focused on productivity and sustainability Strengthen regional agricultural policies and place-based programmes like agro-industrial parks Support food security and agricultural practices through agro-poles,incubators and technical partners

255、hipsIncreased information and data availability leads to better resource allocation and investor confidenceStrengthening the national statistical capacities of African countries can make country risk assessments more accurate and reduce the cost of debt servicing.International organisations and part

256、nerships could step up their support for national statistical capacities in ministries of finance and statistical offices.At the country level,most governments can increase public expenditure on statistical capacities to 0.15%of national budgets(up from an Africa-wide average of only 0.07%in 2021),a

257、s committed through the Strategy for the Harmonization of Statistics in Africa 2017-2026(AUC/AfDB/UNECA/ACBF,2017;AUDA-NEPAD,2022).A large number of African countries could improve their sovereign bond spreads by 14.5basis points and decrease their external debt by about USD400million by putting the

258、ir average levels of data transparency(i.e.adherence to international data standards and best practices)on par with that of better-performing countries(Kubota and Zeufack,2020).Enhancing the statistical capacities of tax authorities would also help African countries recuperate a portion of the USD 5

259、0 billion in illicit financial flows that they lose each year,for instance,by allowing authorities to enforce country-by-country financial reporting for multinational enterprises or match tax records with business registration data(High Level Panel on Illicit Financial Flows from Africa,2021).Table4

260、.Policy recommendations to enhance information and data availabilityType of risk assessmentSpecific policy actionsIllustrationSovereign risk assessments Improve data collection and dissemination,in particular macroeconomic data Adopt licensing and disclosure requirements for credit rating agenciesIn

261、 2021,less than 30%of African countries had a fully funded statistical plan,compared to 44%in Latin America and the Caribbean and 47%in developing Asia.Project risk assessments Partner with third parties to share detailed market,technical and legal information for targeted sectors Strengthen busines

262、s-to-government dialogue,enabling feedback about policies and investment barriersThe African Automotive Data Network compiles detailed data on vehicle sales,demand,motorisation rates and assembly plants.Sustainability assessments Harmonise and enforce methodologies on sustainability assessments and

263、reporting Provide small and mid-sized enterprises with the capacity to collect sustainable investment dataThe AUC/OECD investor survey shows that supply chain partners lacking capacity,unclear sustainability criteria and limited measurement capacity represent important barriers.Note:See Table 2.2 in

264、 Chapter2 for additional examples.Overview32AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Public entities and international organisations,in partnership with private actors,can aggregate and share sectoral information and sustainability data.Results from the AUC

265、/OECD investor survey show that investors demand more official and specialised information on incentives and statistical data(Figure5).Investment promotion agencies,regulators and other public entities should provide such information at the national level,regularly updating data and presenting them

266、in harmonised and user-friendly formats.Likewise,African governments can encourage the collection of sustainability data through national frameworks that can become the groundwork for a continental sustainable finance architecture(Were,2022;Chapter7).In Central Africa,improving natural capital accou

267、nting could unlock additional finance for the regions sustainable development(Chapter4).Despite representing the largest carbon sink in the world,valued at USD 55 billion per year,only 12%of international finance allocated to sustainable forest management went to Congo River Basin forests over the p

268、ast decade,behind the Amazon River Basin(34%)and Southeast Asias forests(55%).Adherence to international frameworks such as the United Nations System of Environmental Economic Accounting,as done by Burundi and Cameroon,can help governments provide reliable estimates of natural capital,assess opportu

269、nities and improve the allocation of sustainable finance.Figure5.Responses to AUC/OECD investor survey question“Which sources of information should there be more of?”0.000.200.400.600.801.001.201.40Informal and one-on-one conversations,word-of-mouthThink tanks,research institutes and consultanciesPo

270、licy eventsLocal knowledge or personal experience in countryProprietary market and business intelligence dataIndustry eventsGovernment-backed bodiesPublicly available statisticsWeighted ranking score Note:n=40.The AUC/OECD investor survey was administered in September 2022 to the networks of African

271、 business councils and the EU-Africa Business Forum.Results show a weighted ranking score.For further information,see Figure 2.1 in Chapter2.12 https:/stat.link/t9coblStrong African-led institutions and partnerships can make sustainable finance more effectiveExpanding and interconnecting local stock

272、 exchanges could mobilise additional finance to support the growth of African firms.The market capitalisation of the 28national and 2 regional stock exchanges in Africa remains far below comparable developing economies:in 2021,the total value of African initial public offerings(IPO)represented less

273、than USD1billion(compared to USD14billion in Brazil and 17billion in India).Over the 2017-21 period,African IPOs accounted for less than 1%of the USD1.5trillion Overview33AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023global value of IPOs(PwC,2021).During the sam

274、e period,77%of all capital raised through Africa-based IPOs originated from only three markets(Egypt,Nigeria and South Africa).Interconnecting stock exchanges can reduce transaction costs,increase trading activity and allow for greater integration of capital markets.Improving the transparency of lis

275、ting requirements on African stock exchanges could unlock finance for smaller firms.For instance,the African Exchanges Linkage Project,launched in 2022,enables seamless cross-border securities trading across seven African stock exchanges representing about USD1.5trillion in capitalisation.Improving

276、the capitalisation of African development finance institutions(DFIs)can allow them to support national development objectives.Africa is home to 102 DFIs,representing about 20%of their total number globally.Yet,African DFIs rarely manage assets worth more than 2-3%of their countrys GDP.Given African

277、governments constrained fiscal positions,donors could increase African DFIs capitalisation to strengthen their ability to channel investment.Initiatives such as the Global Climate Funds(GCF)Readiness Programme can assist African DFIs in diversifying their funding.It provides grants of up to USD 1 mi

278、llion per year and technical assistance to local institutions across 35African countries to receive accreditations and secure GCF funding(GCF,n.d.).The international community could also consider reallocating part of the IMFs Special Drawing Rights to well-managed African financial institutions to e

279、nsure alignment with regional priorities.The African Development Bank and the African Union chairperson called for the reallocation of USD 100 billion in Special Drawing Rights through the African Development Fund to provide concessional financing in low-income countries(AfDB,2022).Leveraging innova

280、tive financing instruments can unlock additional sustainable investments.African governments can tap innovative instruments such as“green,social,sustainability and sustainability-linked”bonds or carbon credits to scale up climate financing(Dembele,Schwarz and Horrocks,2021;Chapters4,5 and 6).For ins

281、tance,in 2021,Gabon became the first African country to receive funds(USD17million)as part of the USD150million results-based agreement with the Central African Forest Initiative,for the countrys efforts in reducing deforestation over 2016-17(CAFI,2021).The issuance of green bonds across nine Africa

282、n countries mobilised USD4.5billion over 2014-21.It could be scaled up with supportive regulatory reforms,as implemented in Latin America and the Caribbean,which attracted 32.8billion over the same period.Implementing carbon credit trading systems could mobilise up to USD245billion(Wambui,2022;Yu et

283、 al.,2021).The Africa Carbon Markets Initiative launched at COP27 aims to mobilise USD6billion and create 30millionjobs by 2030.Finally,local currency financing solutions and other risk mitigation tools can make projects more viable and affordable for local investors.For example,InfraCredit Nigeria

284、provides local currency guarantees and has mobilised close to USD240million from domestic pension funds to finance infrastructure assets since 2017.In North and West Africa,African-led partnerships advance the development of green financing tools(Chapters6 and 7).Multi-stakeholder consultations and

285、regulatory reforms enabled Egypt and Morocco to mobilise USD1.1billion through green bond issuance,or 25%of total green bond issuances in all of Africa over 2014-21.The West African Initiative for Climate Smart Agriculture,a blended finance fund,works through local financial institutions and third p

286、arties to offer technical assistance and loans at subsidised interest rates to farmers organisations and agribusinesses that use climate-resilient agricultural practices.Overview34AFRICAS DEVELOPMENT DYNAMICS 2023:INVESTING IN SUSTAINABLE DEVELOPMENT AUC/OECD 2023Effective regional integration polic

287、ies can help mobilise sustainable investmentsHarmonising national investment policies and productive transformation strategies can increase sustainable investment opportunities.Small domestic markets,macroeconomic risks,unfit regulatory environments,and frail licensing and incorporation regimes incr

288、ease risks and the cost of searching for investment opportunities.Investment policy frameworks and productive transformation strategies can work in tandem to address such issues.African governments can put sustainability at the centre of investment policies and regulatory effectiveness,particularly

289、in strategic sectors such as renewable energy(see Chapters3 and 5).Development corridors and digital infrastructures can be expanded to reduce deficits,increase sustainability and facilitate trade.By 2030,USD411billion will be required for all transport equipment trucks,railway vehicles,aircraft and

290、 ships to accommodate the increase in trade brought about by the African Continental Free Trade Area(AfCFTA)(UNECA,2022).In the context of the Programme for Infrastructure Development in Africa,the African Union has placed development corridors high on Africas regional integration agenda(AU,2017).A

291、holistic and multi-dimensional approach to development corridors can help address infrastructure deficits on the continent and contribute to social and environmental sustainability(AU,2020).Expanding digital infrastructures through the Pan-African Payment and Settlement System aims to facilitate tra

292、de,notably by reducing the cost of foreign exchange in the 42African currencies(AUC/OECD,2021,2022).Establishing linkages between multinational enterprises and local small and medium-sized enterprises takes time and requires policy support to generate sustainable outcomes.The impact of such linkages

293、 can take up to 15years to materialise,as lead firms need time to invest financial,human and technological resources(Jenkins et al.,2007).Policy makers can deploy complementary support services such as supplier development programmes,matchmaking services and data provision,targeted incentives,inclus

294、ive clustering policies,and support to meet international standards to foster value chain linkages(AUC/OECD,2022;OECD,2021d).Support from third parties like training or certification agencies can enhance the benefits that lead firms transfer to SMEs through value chain linkages(see Chapter7).The AfC

295、FTA Investment Protocol promises to harmonise the African investment policy landscape.Currently,852bilateral investment treaties exist between African countries and between African and non-African countries(UNECA/AU/AfDB/UNCTAD,2019).Liberalising trade and harmonising investment,competition and inte

296、llectual property rights laws under the AfCFTA could boost Africas FDI stock by 122%from outside the continent and by 68%from other African countries compared to 2017 levels(Echandi,Maliszewska and Steenbergen,2022).Implementing the AfCFTA Investment Protocol,approved at the African Union Summit in

297、February 2023,requires monitoring mechanisms;experiences from African regional economic communities such as the ECOWAS Investment Climate Monitoring Scorecard and SADC Investment Policy Framework and from other world regions provide examples of how to co-ordinate policies and monitor progress.Contin

298、uous exchange with private sector representatives,such as through the AfroChampions initiative,would help promote investment opportunities throughout the AfCFTA implementation process.In East and Southern Africa,cross-border projects can support the development of renewable energy and cross-border t

299、rade of renewable power(Chapters3 and 5).The African Clean Energy Corridor,connecting the Eastern Africa Power Pool and the Southern African Power Pool,aims to increase electricity supply by 2.5times,meeting 40-50%of power needs in both regions by 2030 while cutting annual CO2emission levels by 310m

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