DRIVING INVESTMENT THROUGH REGULATORY COHESION

The People

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By prioritising Africa’s most important asset – its people – the continent can boost foreign direct investment and investor confidence within the energy sector, according to Simo Kubheka, CEO and Co-Founder of Avuke Group Ltd., who recently spoke to Africa Oil & Power on the continent’s drive for investment in 2021 and beyond.

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Change Investor Perspective

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Historically, sub-Saharan Africa has been regarded as a high-risk region, and with the global economic downturn, this will likely be accelerated post-COVID-19, says Kubheka. In response, the continent must change investor perception by reimagining Africa’s brand. By focusing on Africa’s primary asset – its rapidly growing youth population – the continent can leverage concepts of time and potential to attract investment. The young and growing continent has the ability to scale and develop, but if it is able to harness its own talent. While Africa boasts substantial natural resources, ultimately, the driving force behind its development is its people, and this is where investments should be made.

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Visible Compliance

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Kubheka notes that from a risk and reluctance perspective, Africa needs to be able to demonstrate visible compliance. Avuke Group’s objective is to help businesses do just that, by helping them convert viable ideas into sustainable business models. One the most significant challenges in Africa’s fiscal and tax landscape is cohesion, due to the diversity of the African energy sector. Despite the advantages that diversity presents, Kubheka explains that diversity makes it more difficult for investors and businesses looking to expand into the region, as they need to navigate multiple, highly complex frameworks.

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Mixed Blessing

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Kubheka suggests that COVID-19 has been a mixed blessing, as it has triggered increased cooperation between nations and businesses across regions, and therefore, should enable cohesion from a regulatory perspective, as well. Increased cohesion will ensure transparency, clarity and consistency, as well as improve the ease of doing business, in turn driving further investment.