Ethiopia is fast emerging as the land of opportunity
Africa is the last frontier for growth opportunities of significant size
Prof. Dominic McVey MBE is an award-winning business leader, entrepreneur and philanthropist, with a portfolio of multi-national business interests, spanning manufacturing, technology, cosmetics and management consultancy. He is the Honorary Consul of the Republic of Namibia to Wales. He is an outspoken and committed advocate for increasing equitable trade with developing countries and promoting sustainable foreign direct investment into African countries. In 2022, Prof. McVey received an MBE in the Queen’s Platinum Jubilee Honours, in recognition of his services to private sector development in the continent of Africa.
IA: As someone who has been actively investing in emerging economies for years, what do you believe are the benefits of investing in the African emerging economies?
DOMINIC: If you´re not there, you can’t make an impact at all. Some developed regions, the size of their markets is not growing, they are at saturation. Africa is the last frontier for growth opportunities of significant size. There is no growth without Africa.
IA: Can you lift up some examples of how you see the potential for scalable businesses on the African continent and how that is unique in a global context.
DOMINIC: You only get growth in developing markets by growing populations, which happens exponentially in some cases. We require new growth- the only place to get new market share and growth is Africa.
If we´re looking at businesses that can scale quickly and which sectors, the question is who is the consumer? Salmon fisheries are opening in Namibia. The Norwegian Government for example wants 1 billion USD to open a salmon fishery, while Namibia is offering it for free. It’s not without risks but it’s opening opportunities for salmon to be grown in other parts of the world. Also making salmon more accessible to Africa, in terms of proximity.
Africa can give you new efficiencies and give you new markets. Allows you to trade under the African Continental Free Trade Area (Afcfta). Once it reaches certain volumes, they can look to build domestic production. But if you´re looking to sell something to the rest of the world and take advantage of regional tax and trade incentives, like the African Growth and Opportunity Act (AGOA) and a good place to make and export from is for example, Nairobi. People need to start considering Africa in their global footprint.
Some businesses are not possible to test in more saturated markets, the availability and duty free trading is not there. Depending on your market, there is always a solution in Africa, always one that is viable, meaningful, and equitable.
IA: You are known to champion trade as a powerful force for good in Africa. What do you believe trade can contribute to?
DOMINIC: Economic prosperity and taking millions of people out of poverty. One of things I focus on is trade and prosperity for economic development and empowerment. In the 18th century, trade brought people out of poverty in the UK.
Africa has the right to trade its way out of poverty too. How to support Africa to trade its way out of poverty? Whether through development aid, through reparations, or whether through investment, we have to recognise the opportunity it brings for the global economy and the opportunity it brings for Africans. By people trading freely and fairly and without fear, they are able to prosper on their own terms, and ultimately they will be able to pay taxes, and the government can then fund future generations for healthcare and education. The challenges governments have is often fiscal, if they are not efficient in tax collection, for a multitude of reasons. Trade to get those tax revenues up. There is a need to move people from informal to formal sectors. A solution is to trade their way out of poverty into prosperity.
IA: The world is changing, which role do you believe Africa can play going forward? And as someone who has been actively investing in the African continent, your key takeaways?
DOMINIC: If you look at the history books- the opportunities which existed in Europe long ago, those exist in Africa today. To unlock opportunities, financing is a challenge in Africa, and currency is a challenge, no one should be going to Africa to make a quick buck. Globally, 25 % of the world’s population will be African in 2050, you can’t tell me there are no opportunities there. The key is unlocking it and being a supporter, facilitator.
With an evolving geopolitical landscape, there’s a huge opportunity now for Africa to understand the power that it has and reset the relationships to be far more equitable and more dynamic. People should be saying that Africa is a great idea and this is how we’re going to do it, and we’re going to do it right and equitable and most importantly, that has to be shouted loud and clear from Africa first.
IA: What potential do you see in the African Continental Free Trade Area (Afcfta) and what do you believe needs to happen to fulfill its promise?
DOMINIC: Research by the World Bank anticipates 30 mill people will be brought out of poverty by the African Continental Free Trade Area (Afcfta). Food has to be top priority, there are still people in parts of Africa that are starving.
For Afcfta to work, there needs to be improved infrastructure, better implementation and awareness of Acfta, training custom officials and standards in place. There needs to be training in compliance, and testing and standardisation labs. There is a need to focus on key products where the demand is. Zimbabwe and DRC for example have a lot of rare earth minerals, whereas Ghana and Kenya have manufacturing skills. So it’s to take the skills set where best to utilize them, making sure that food can move.
Currently, African trade sits at about 16% intra-africa, meaning that we have 84% imports into a continent where most of the raw materials are probably coming from. So Africa will be able to trade more freely, more fair, and more cost effectively with each other. It’s going to bring 30 million people out of poverty in the next ten years. The GDP will grow by 32%. Africa has this huge opportunity and has become one of the world’s biggest free trading blocks. And it will bring prosperity, will reduce conflict. It will take people out of poverty.
IA: What inspires your passion for creating positive change?
DOMINIC: I have a philosophy of you’ve got to pay it forwards, I like to think it’s not unique.
There is the fulfillment and reward of seeing where we have succeeded, but also being an advocate and voice for those not yet heard. And seeing people on the African continent, sharing their lessons and successes and standing up even more for those that can’t be heard. On a selfish level, I love it. Doing good is good business, particularly in Africa.
