Page 9 - Admaius 2022 ESGI report
P. 9
Admaius Capital Partners’ How we approach
commitments ESG and impact Our portfolio
Why invest in Africa?
Africa is the 2nd largest continent
by both land and population, and Africa’s size and scale Key drivers Cross border trade
and money flows
also now the world’s largest free • People consistently underestimate
trade zone. The continent is the size and scale of Africa... see • The African Continental Free Trade
therefore primed to experience McKinsey chart on the right. Area (AfCFTA) which came into
The region is larger than Europe,
effect 1 Jan 2021 has made Africa the
rapid and significant economic India and China combined. largest free trade area in the world
development, with a young and • Africa has the highest fertility and with 53 participating countries.
increasingly tech enabled and projected population growth of any • The Pan-African Payment and
region in the world. Its population
urbanized workforce who are is expected to grow from 1.4 billion Settlement System (PAPSS) AfCFTA
will also ease payments constraints
providing strong economic in 2021 to 2.5 billion in 2050. This across Africa’s complex network of
fundamentals for the region. accounts for more than 60% of 40+ currencies. Regional initiatives
projected, global population growth
such as the SADC are already helping
Despite covid setbacks the over this period (2021-2050). to improve transaction settlements
continent offers a development • The continent is also increasingly within regions that would otherwise
pathway for human and natural urbanized with 90+ African require complex and expensive
correspondent banking arrangements
cities expected to have over 1
resources to yield inclusive million inhabitants by 2030. and counterparties outside of Africa.
growth, while reducing poverty • Globally it is the region with • The explosive growth in Fintech
levels across its 54 countries. youngest median age (20 years) in Africa is having a multiplier
effect across all sectors of the
with an estimated half of the
population under 25 in 2030. economy, as underserved
• The continent holds 60% of the individuals and SMEs have access
world’s uncultivated arable land. to connectivity and financial
This will be increasingly relevant as services often for the first time.
global food demand is expected
to increase by 70% by 2050.
Data and stats taken from the World Bank and Population Reference Bureau, chart from McKinsey 2018 research paper “Africa’s overlooked business revolution”
8 Admaius Capital Partners ESG & Impact Report 2022
