Investor Optimism Grows for African Economies

Over the last couple of years there has been a dramatic change in the way many investors are looking at the African continent as a place to do business. And the foundations of many of the African markets are proving a solid footing for many companies not traditionally involved in this region. Why? The returns are high and look increasingly sustainable for the medium to longer term.

A recent report by the McKinsey Global Institute explained that Africa's economic pulse has quickened over the last few years, infusing the continent with a new commercial vibrancy. GDP rose 4.9 per cent per year from 2000 to 2008, more than twice its pace than in the previous two decades. And only 24% of this growth is attributable to Africa's wealth of natural resources and global demand for commodities. Growth has been accelerated by governments' moves to cut red tape and improve macro-economic conditions and a willingness to forge new partnerships with foreign investors. The International Finance Corporation (IFC) witnessed between 2000 and 2010, a return of almost 22 per cent a year on its African private equity portfolio, higher than for any other emerging markets region.

Jonathan Worsley, Chairman of Bench Events, organiser of Hotel Investment Conferences in developing markets throughout the world said "we have been aware of the huge potential of Africa for some time and have been actively building relationships with governments and consultants in the region to launch a hotel investment conference, which I am pleased to say will take place in Casablanca from 26-27 September this year. Many of the major hotel brands have recognised the true potential of this continent and that Africa must be a priority on their development list. Accor, Marriott and Rezidor have all located development directors to the region." Worsley continued "much of the problem has understandably, been a lack of knowledge of how to successfully carry out business here. There have been many challenges which governments have been working hard to resolve. The purpose of the conference is to show delegates how successful investors and operators have overcome these hurdles, and to explore ways in which to work in partnerships to attract further hotel investment to the region."

Jalil Mekouar, Managing Director EMEA, Jones Lang LaSalle Hotels commented "Africa may not always have been the easiest place to do business – but for those who do now, the rewards are immense". A recent JLL report highlighted that international grade real estate demand from Casablanca to Cape Town is and will continue to increase rapidly over the next decade due to the on-going rise of the African middle classes, continued global commodity demand and improved infrastructure and investment.

Speaking at the Hotel Investment Conference (HICA) in September, The Minister of Tourism and Handicraft for the Kingdom of Morocco, HE Yassir Zenagui will deliver Morocco's Vision 2020, a multi-billion government plan to double tourist receipts and is backed by three middle eastern sovereign wealth funds. Many projects are currently under development in Morocco such as the expansion of the Tanger Med, the largest port on the Mediterranean and in Africa, which is expected to attract investment from a number of large companies.

Around 30 other speakers are currently confirmed for the HICA conference in September including: Tarik Senhaji, President of SMIT, Ministry of Tourism Morocco - how investors can work with the Moroccan government; Yann Caillère, President and COO, Accor - how Accor is working with partners and growing their African pipeline; Ed Fuller, President and MD, Marriott International - global operators diving into Africa; Bill Heinecke, Chairman and CEO, Minor International - the 'Richard Branson' of Thailand and how Minor succeeds on obstacles confronting growth; Nenad Pacek, President and co-founder, CEEMEA Group – a leading authority on emerging markets; Otto J Stehlik, Chairman, Protea Hotels - how Protea has succeeded in becoming the dominant player in Africa; and Chris Luebkeman, Director, Global Foresight and Innovation, Arup – a leading creative force behind many of the world's most innovative projects and structures. Hear how they are transforming Africa?

Further information on HICA www.africa-conference.com

Grant Collier
Marketing Director - Bench Events
+44 (0)208 668 0218
The Bench