Investment Case for West Africa

Executive Summary

West Africa is emerging as a top global investment destination, driven by its large and growing market, rich resources, youthful workforce, and strong policy reforms. With over 400 million consumers, steady GDP growth of about 5.2%, and more than $100 billion invested in infrastructure, the region offers significant opportunities across key sectors.

Regional integration and the implementation of AfCFTA further expand access to a continent-wide market of 1.3 billion people, making West Africa an increasingly strategic focus for global investors seeking growth and scale.

Market Fundamentals

The foundation of West Africa's investment opportunity

400M+

Population

2.6% annual growth

$700B+

Combined GDP

5.2% average growth

60%

Under Age 25

Demographic dividend

55%

Urbanization

Rapidly expanding

Growing Consumer Market

West Africa's consumer market is expanding rapidly, driven by population growth, urbanization, and rising incomes. The region's middle class is projected to reach 150 million by 2030.

240 million people will enter working age by 2030
65% mobile phone penetration and rising
$45B annual retail market growth projected
Urban centers creating concentrated demand hubs

Strategic Market Access

Through ECOWAS and AfCFTA, West Africa offers unparalleled market access spanning Africa and beyond, enhanced by preferential trade agreements with major economies.

Free movement of goods, services, and capital within ECOWAS
1.3 billion consumers across Africa via AfCFTA
EU partnership providing preferential market access
AGOA benefits for eligible exports to the United States

Resource Endowment

Abundant natural resources creating diverse investment opportunities

Energy Resources

37 billion barrels proven oil reserves
287 trillion cubic feet natural gas reserves
Massive solar potential (6+ kWh/m²/day)
Hydropower capacity largely untapped

Mineral Wealth

Gold: Ghana (9th globally), Mali, Burkina Faso
Bauxite: Guinea (25% of world reserves)
Iron ore: Guinea, Liberia, Sierra Leone
Uranium, diamonds, and rare earth elements

Agricultural Land

248 million hectares of arable land
40% of Africa's agricultural potential
Multiple growing seasons per year
Diverse agro-ecological zones

Maritime Resources

7,400 km Atlantic coastline
Rich fishing grounds in exclusive economic zones
Deep-water ports for global trade
Offshore oil & gas exploration opportunities

Forest Resources

58 million hectares of forest cover
Valuable timber species for sustainable forestry
Non-timber products: shea, rubber, cashew
Carbon credit opportunities

Water Resources

Niger River: 4,200 km, third longest in Africa
Volta River: major hydropower potential
Abundant groundwater in coastal regions
Irrigation development opportunities

Economic Dynamics

Strong growth trajectory and diversification momentum

GDP Growth Rates (2020-2025)

Nigeria 3.8%

3.8%

Côte d'Ivoire 6.2%

6.2%

Ghana 5.4%

5.4%

Senegal 6.8%

6.8%

Benin 6.0%

6.0%

FDI Inflows by Sector (2024)

Energy & Mining $18.2B

35%

ICT & Telecom $9.8B

19%

Manufacturing $8.3B

16%

Infrastructure $7.8B

15%

Agriculture $7.9B

15%

Economic Diversification Progress

2015-2018: Foundation Phase

Regional economies heavily dependent on commodity exports (oil, minerals, agricultural raw materials). Limited value addition and manufacturing base.

2019-2021: Transition Phase

Strategic push towards manufacturing, services, and digital economy. Industrial parks and special economic zones established. Technology hubs emerge in major cities.

2022-2024: Acceleration Phase

Non-oil sectors now contribute 65%+ to GDP in key economies. Fintech, e-commerce, and renewable energy attract significant investment. Value-added agriculture and agro-processing expanding rapidly.

2025 Onwards: Maturation Phase

AfCFTA implementation deepening regional value chains. Export-oriented manufacturing gaining traction. Green economy transition creating new investment frontiers. Digital infrastructure enabling knowledge economy growth.

Infrastructure Development

Massive investments transforming connectivity and competitiveness

$100B+

Investment Pipeline

Infrastructure projects 2024-2030

45+

Major Ports

Deep-water facilities operational

85,000km

Fiber Optic

Undersea & terrestrial cables

120+

Airports

International & domestic hubs

Transport & Logistics

Lekki Deep Sea Port (Nigeria): 2.5M TEU capacity, operational 2023
Tema Port Expansion (Ghana): Additional 3.5M TEU capacity
Abidjan Port (Côte d'Ivoire): Regional transshipment hub
Trans-West African Highway: 4,500 km connecting Lagos to Dakar
Rail modernization: Standard gauge networks under construction

Digital Infrastructure

MainOne Cable System: 7,000 km undersea fiber from Portugal to South Africa
ACE Cable: 17,000 km connecting West Africa to Europe
4G/5G deployment: Major cities achieving 80%+ coverage
Data centers: Lagos, Accra, Abidjan emerging as regional hubs
Mobile money infrastructure: 120M+ active users regionally

Policy & Regulatory Environment

Progressive reforms enhancing the business climate

Key Reform Areas

Business Registration

✓ Online registration platforms operational
✓ Registration time reduced to 1-5 days in leading countries
✓ One-stop-shop IPAs streamlining processes
✓ Reduced documentation requirements

Investment Protection

✓ 150+ bilateral investment treaties signed
✓ Guaranteed profit repatriation
✓ International arbitration access
✓ Protection against expropriation

Tax Reforms

✓ Corporate tax rates competitive (20-30%)
✓ Sector-specific tax holidays (5-15 years)
✓ Transparent tax administration
✓ Withholding tax exemptions for priority sectors

Legal Framework

✓ Modern investment codes enacted
✓ Commercial courts established
✓ Intellectual property protection strengthened
✓ Contract enforcement improving

Quantitative Value Proposition

The numbers that matter to investors

15-25%

Average ROI

Typical return on investment for well-executed projects across priority sectors

30-50%

Cost Advantage

Lower operational costs compared to other emerging markets

3-5 yrs

Payback Period

Average time to recover initial investment in manufacturing and services

The Investment Case for West Africa