Africa 2063 (Part IV) – ‘The next global growth frontier’!

Africa can drive global growth into the middle of this century. Africa’s young population with a median age of 19,3 years old can become the working class and consumer class to spur on development and growth. Meanwhile some other major regions in the world are already facing a population crisis with aged populations. Africa’s youth dividend will only be beneficial if Africa takes one of two paths.

Africa could continue as is, being exploited by external forces for its resources through neocolonialism or take more control over its own destiny and chart a path towards true political and economic freedom.

Africa has the benefit of seeing what has transpired in other regions of the globe as summarized in Africa 2063 parts I, II & III looking at China, Europe and America’s growth through unity stories. Africa can draw many lessons on the path towards prosperity for all it’s citizens, by utilizing its inherent characteristics and abundant natural resources.

Africa must focus aggressively on education and innovation/digitalization!

Africa must focus on wide scale agricultural development!

Africa must focus on wide scale infrastructure development to enhance Intra-Africa trade!

Africa must build-up its energy infrastructure capacity focusing on sustainable energy sourcesto drive rapid industrialization!

What is needed to enable the above?

Africa needs investment capital to fund:

  • Bricks and mortar – to build the infrastructure needed for business, transport and logistics (intra-continental rail and road – with no borders!) – to drive ACTFA. The private sector is crucial in driving regional integration.
  • Domestic savings (i.e. Pension funds, personal savings & Diaspora – shift from consumption to investment spending) must be utilized for infrastructure investment drive
  • Africa must invest to build a domestic supermarket, where African made products can move freely between African countries – multinational Afro-business!
  • Geopolitically foreign investment capital is still needed, but must only be taken up on fair/equitable business terms that don’t only favor the foreign lenders and corrupt politicians to the detriment of citizens (create a competitive investment climate for foreign capital)
  • African multinational corporations must lead the investment drive supported by governments in an enabling business environment, which will also accelerate job creation
    • Critical value chains that Africa can start focusing on – Investment in agriculture to improve agricultural processes – Africa can easily feed itself and the rest of the world!
      • Agri-business [build the value chain]
      • Enable creation of MNO’s in the food business
      • We need wide scale entrepreneurship in the Agricultural sector supporting
        • Mid to large scale business
        • SMME’s
        • Micro-enterprises
    • Innovation through digital technologies (focused on mobile device as point of access)
      • Digital/online eduction – for short and long form education including certification
      • Blockchain (Cryptocurrencies), Fintech and mobile money – to drive borderless transactions and eCommerce
      • Health technology to broaden reach for specialized health services to remote areas
  • Small business and entrepreneurship must be a focus of developmental finance institutions (DFIs), unlike the current model followed by DFIs that act like commercial banks! [DFIs mandate and focus must be changed at continental/AU level, driven by local governments to focus mainly on supporting SMME’s]

Africa needs to unite!

It is clear that the fragmentation of Africa initially through ethnicity, language, tradition and religions, which was later exploited by divisive colonizing external forces through western religions and formalized barriers through borders separating Africans, is one of the main factors holding Africa back. These barriers can be broken down through unity, enabling free movement of people and goods as illustrated in the EU, China and USA examples. African Unity is the only path to peace and prosperity for all!