IN the sprawling landscapes of economic discourse at just-ended Davos 2024, Fifi Andrews set the tone with a pointed inquiry: Is Africa genuinely on an upward trajectory, or does the continent, often referred to as the ‘sleeping giant,’ remain in a state of dormancy? ‘This giant is on snooze,’ remarked Andrews, encapsulating the scepticism that has lingered over Africa’s economic awakening.
The forum presented an opportune moment to address this question, delving into policy measures and public-private partnerships aimed at propelling the African economy into a new era of growth. Andrews’ statement became a rallying cry for leaders to examine and dissect the factors influencing Africa’s economic destiny.
One of the pivotal highlights at Davos 2024 was the introduction of the Private Sector Action Plan, a collaborative initiative between the World Economic Forum and the African Continental Free Trade Area (AfCFTA) Secretariat. In the words of a spokesperson, ‘This initiative is a testament to our collective commitment to fostering economic growth in Africa.’ Comprising 40 global companies, this plan is poised to bring about a paradigm shift in how the private sector engages with the continent’s economic challenges and opportunities.
Simultaneously, Presidents Paul Kagame of Rwanda and Nana Akufo-Addo of Ghana, in partnership with the United Nations Development Fund, unveiled Timbuktoo—a startup fund with a bold initial target of $1bn. President Kagame highlighted the fund’s mission, stating, ‘Timbuktoo aims to leverage Africa’s youth and dynamism,’ emphasising the role of the fund in fostering economic growth, job creation, and technological advancements.
Challenges in Africa: from Virunga to real-world solutions
While the aspirations for economic growth echoed in Davos, the continent’s journey is not without hurdles. Emmanuel de Merod, Director of Virunga National Park in the Democratic Republic of Congo, brought attention to the multifaceted challenges faced by the park. ‘Violence, extreme poverty, and environmental degradation in Eastern Congo are byproducts of the scramble for resources,’ he revealed, shedding light on the complex realities that often accompany economic pursuits.
Acknowledging these challenges, leaders at Davos emphasised the need for real-world solutions. Rwandan President Paul Kagame highlighted the importance of capacity building as a way to keep Africa aligned with global developments, especially during crises. ‘Capacity building is key to ensuring Africa remains up-to-speed with global developments,’ President Kagame asserted during a session, underlining the critical need for investing in human capital.
Ngozi Okonjo-Iweala, Director General of the World Trade Organisation (WTO), added her perspective on the evolving balance of trading power. ‘The balance of trading power is shifting towards the South,’ she stated, underscoring the need for multilateral organisations like the WTO to shape equitable outcomes in a multipolar world.
AfCFTA: unleashing Africa’s potential
In the complex landscape of Africa’s economic narrative, the African Continental Free Trade Area (AfCFTA) emerged as a central player, as detailed in the World Economic Forum’s Insight Report, AfCFTA: A New Era for Global Business and Investment in Africa. Projected to host 1.7 billion people and oversee $6.7 trillion in spending by 2030, AfCFTA is positioned to unlock Africa’s vast potential.
Speaking at the African Economy of Scale session, Wamkele Mene, Secretary-General of AfCFTA, asserted, ‘The agreement has laid the groundwork for unleashing Africa’s potential.’ AfCFTA, one of the world’s largest free trade areas by both population and economic size, is expected to bring about transformative changes in the continent’s economic landscape.
Diverse perspectives on Africa’s future: BRICS, agriculture, and investment
In the tapestry of voices at Davos, Enoch Godongwana, South Africa’s Minister of Finance, advocated for BRICS as a means to mobilise savings in the South. ‘Reforming international, multilateral institutions is critical to mobilising savings in the South,’ he stated, offering a contrarian view on the potential of BRICS in shaping a new economic order.
Kashim Shettima, Vice-President of Nigeria, identified agriculture as a key driver of growth. ‘Agriculture holds the key,’ he asserted, stressing the need for modern practices to harness the continent’s youthful population. He recounted the transformative journey of agriculture, stating, ‘100 years ago, people used horses and cutlasses to eke out a meagre existence. Now, farmers have to embrace modern agricultural practices.’
Mary Vilakazi, CEO-Designate of FirstRand Ltd, Africa’s biggest lender by market value, addressed the crucial role of access to capital. ‘Banks must prioritise businesses that create jobs and build infrastructure,’ she emphasised, recognising the structural and regulatory barriers that impede seamless trade.
Preparing for a multipolar landscape: Africa’s rising role
Speaking at the Middle Powers in a Multipolar World session, Demeke Mekonnen Hassen, Deputy Prime Minister of Ethiopia, articulated a vision for Africa’s preparedness to compete in a multipolar landscape. He outlined a continental shoring up in the areas of peace and security, the African economy, and digitalisation. Despite acknowledging challenges such as climate change, the energy transition, and technological divides, he asserted that ‘Africa is rising and African countries are quickly evolving to compete on the global level.’
On January 1, 2024, Ethiopia joined the BRICS pact. Mekonnen Hassen added in his remarks that Africa is poised to ‘play a pivotal role internationally when it comes to trade, investment, and other economic activities.’
Collaborative efforts for Africa’s economic renaissance
As Africa grapples with challenges and embraces opportunities, Davos 2024 illuminated the continent’s potential and underscored the importance of collaborative efforts to propel its economic renaissance. The multifaceted discussions, peppered with insightful quotes from prominent figures, present a comprehensive view of Africa’s economic landscape—a tapestry woven with challenges, initiatives, and the promise of a vibrant future.
(World Economic Forum)
