‘Africa exports its savings and imports expensive capital’ – Sir Sam Jonah

Ghanaian businessman Sir Sam Jonah has urged African investors to invest more capital within the continent, cautioning that Africa is trapped in a cycle of exporting savings while borrowing expensive capital abroad. This has widened the infrastructure financing gap and hindered promising businesses from accessing long-term funding.

At the Global Business Forum – Ghana Edition on August 28, Sir Sam Jonah described the situation as Africa's "great paradox." He explained that African pension funds and institutional pools are invested in short-term instruments while the infrastructure gap widens and the continent's best entrepreneurs struggle for funding. Borrowing money back from abroad at high rates is a result of this paradox.

Jonah highlighted that no continent in history has industrialized solely on rented capital. He acknowledged the importance of foreign investment and welcomed the contribution of international investors to Africa's development. However, he emphasized that African countries and investors must demonstrate greater confidence in their economies.

Jonah argued that capital follows conviction, not substitution. He suggested that investors are more likely to commit funds when they see African investors and institutions taking risks in their own markets. Jonah called for the establishment of more African companies capable of competing globally, creating jobs, and growing over the long term.

He cited Ashanti Goldfields, which became the first African company listed on the New York Stock Exchange, as proof that African businesses can compete on the global stage when properly built and managed. According to Jonah, Africa needs hundreds more such firms across strategic sectors like agribusiness, finance, energy, technology, and manufacturing.

He emphasized that building these businesses should not solely be the responsibility of governments; it is the duty of the people in the room. Finally, Jonah urged African investors to embrace patient capital and invest in promising businesses early on, as the best-performing opportunities in the coming decades will belong to those who correctly price risks while others are still fearful.