By Jean Narcisse Djaha
Africa is the center of gravity of the World’s politics, economy, and business.
Introduction
Africa is becoming the center of gravity of the World. Africa is taking an important driving seat in international relations. In the 17th century, Cardinal Richelieu from the Republic of France modernized international relations. Cardinal Richelieu’s approach to global affairs, which is nation-focused, focused on realizing national interests. Cardinal Richelieu could be considered a defensive realist. Great Britain, in the 18th century, introduced the concept of balance of power to the international system. This concept championed diplomacy on the European continent for over two centuries. In the 19th century, Metternish’s Austria built the Concert of Europe, and Bismark’s Germany dismantled it, reshaping European diplomacy into a cold-blooded game of power politics. In the 21st century, America has dominated international relations diplomatically, economically, politically, commercially, and militarily. In the coming decades, Africa will shape the future of international relations in several ways possible. Soon, the African continent will become the number one center of gravity of great power politics. Very soon, no continent will influence the world economically, diplomatically, and politically as Africa. Africa will become a global power. Africa will determine its roster of international partners to work with.
Forces Present in Africa
Africa Has 60% of the World’s Arable Land
Africa has more than 60 percent of the World’s cultivated arable land. This is a massive opportunity for both governments and private sectors to rebuild their economies through the good exploitation of their lands. Leaders on the African continent possess a unique opportunity to realize the full potential of their countries’ agricultural sectors. Research from McKinsey indicates that more than 60% percent of the population of Sub-Saharan Africa is smallholder farmers, and about 23% of Sub-Saharan Africa’s DGP comes from agriculture. Agriculture is the heart of several economies in Africa. The World Bank reports that agriculture can help reduce poverty, raise incomes, and improve food security for 80% of the World’s poor, who live in rural areas and work mainly in farming. The World Bank Group is a leading financier of agriculture. To improve agriculture, policymakers, governments, and private sector leaders will tap into the untapped arable land in a way that improves crops.
Africa Has a Growing Dynamic Young Workforce
Africa has dynamic and innovative young people in every sector and walk of life. As the World Economic Forum noted, more than 60% of Africa’s population is under the age of 25, and by 2030, young Africans are expected to constitute 42% of global youth.
“The World’s fastest growing populations are now in Africa. More than a dozen countries have rates of increase in excess of 3 percent, including Niger at 4 percent; Gambia, at 3.4 percent; and Uganda, at 3.3 percent. If current growth rates continue, the populations of 15 African countries would more than triple by midcentury”.
The youth population growth, rather than being a problem, could constitute a positive force that helps improve education, infrastructure, and the economy in general. Young people are active and innovative in several sectors when it comes to adding exceptional value to the economy. Nigeria and Rwanda register growing active technology leaders on the continent.
Africa is at the forefront of technological innovation
Source: Intelligent CIO, September 2021
Africa is already home to incredible technological innovations and projects. On the African continent, technology prowess is advancing at a very rapid pace. African nations can no longer accept taking the back seat to technology innovation. The future of young people remains a top priority for African governments. The destiny of Africa’s future is in the hands of Africans, not an unaccountable bureaucracy, and not elected by Africans. In other words, young people will take full possession of the role in the race for advanced technological innovations. Young people will rise to the moment and toil to achieve their dreams.
In 2022, ten countries were ranked the top and most innovative nations in Africa. These include South Africa, Kenya, Mauritius, Nigeria, Egypt, Rwanda, Botswana, Ghana, Uganda, and Angela. Other countries like Cote d’Ivoire and many more will continue to position themselves at the forefront of technological breakthroughs in Africa. The years ahead will constitute a turning point in the continent’s history. After missing the Third Industrial Revolution, African youth will not tolerate themselves for not realizing the ongoing Fourth Industrial Revolution infrastructure building in several disciplines and sectors. Whether Africa likes it or not, its future will not be realized without technology. Put differently, technological innovation is what Africa needs to be competitive in the global economy. Let us consider what the World Economic Forum says about the importance of technology for youth:
“The millennial generation has lived through the continent’s meteoric rise in mobile and internet penetration rates. Today, African youths are increasingly taking an active role in shaping their future. In Accra, Nairobi, Cairo or Benguerir, fully fledged start-up scenes are disrupting how we think about African agriculture, industry, IT and sustainability”.
Technology innovation is no longer an option for development, but rather a must. The acceleration of technology infrastructure should be one of the top priorities of all African governments. Most experts recognize that technology is a crucial driver for economic development and growth. It generates several tangible benefits. Technology innovation augments productivity and performance and improves the development of productivity. It helps improve government and private sector competitiveness in the global economy. Technology innovation will constantly optimize the way African governments, businesses, and organizations operate. Young people are doing great in several nations across Africa. For example, according to Business Insider Africa.
- Lagos (Nigeria) is ranked the number one start-up city in Africa.
- Cape Town, Johannesburg, and Pretoria have become technology innovation hubs on the continent.
- Kigali (Rwanda) is ranked the highest city for technological innovations in Eastern Africa.
- Cairo (Egypt) is ranked number one in Africa and 1st in Northern Africa.
The technology revolution provides Africa with a unique opportunity to compete in the global marketplace and realize its full potential for entrepreneurship. From the ground level, current technological advancements in Africa are fascinating and encouraging.
Africa is at the heart of global venture capital investment.
Africa is attracting a significant amount of investment for its private sector. In 2021, Africa attracted a record $83 billion in foreign direct investment, which is excellent news for entrepreneurs on the continent. Africa will continue to champion investment for its development and project financing.
FDI inflows to the African continent and subregions, 2020-2021
Source: World Investment Report 2022
This figure indicates that Africa has continued to attract foreign direct investment from a wide range of partners worldwide. Africa has a substantial private investment gap. Every business needs money to grow and generate revenue. For instance, from 2020 – 2021, Africa’s five regions: North, West, Central, East, and South Africa, attracted $83 billion.
In the majority of cases, these businesses are spearheaded by Africans under the age of 35. In fact, 2021 was a record-breaking year for Africa’s start-up scene, which secured over $2 billion in funding. The African Development Bank (AfDB) attributes this mostly to “large economies and sizeable populations.”
As noted by Dr. Leon Eisen, the African Private Capital Activity Report indicates that 300 companies raised about $4 billion, which is groundbreaking fundraising with an increase of 63% over the annual fundraising average of 2.7 billion from 2016 to 2020. In the same report, According to the Venture Capital in Africa Report, West Africa attracted the highest volume of VC deals in Africa (33%) in 2021. A remarkable 23% of all early-stage VC investments went to Nigeria. At the same time, “East, North and Southern Africa each accounted for an equal proportion of deal value last year, drawing 20% of the total deal volume respectively.” Despite significant challenges in capital fundraising in several sectors, Africa will continue to attract investment from stakeholders around the World. The multitude of investors and development partners will also play a critical role in the capital culture building on the African continent.
Africa is building more economic builders than political leaders.
Africa needs economic builders, not political leaders. Economic development will contribute to the development of Africa. This begins by giving young people the financial means necessary to innovate and create solutions to advanced sectors. Africa will become a respected continent when its leaders are economically influential. Those who feed you can manipulate you. Those who fund your institution always put their agenda first. Millions of brilliant African youths and minds have great projects. They have the skills, competencies, and determination. Unfortunately, they do not have the money to realize their dreams.
By 2030, young people are expected to make up 42 percent of the World’s youth. This accounts for 75 percent of those youth under age 35 in Africa. With such a large population of young people, more than ever, supportive policies and programs on inclusive youth development are critical. Harnessing the demographic dividend and expanding opportunities for young people—to the benefit of all Africans—will require sound economic leadership development programs on the continent.
Africa is becoming the future of Free Trade.
Source: Trade Finance Global, 2022.
Africa will be home to the African Continental Free Trade Area agreement (AfCFTA). Once fully implemented––a goal set for 2030––the African Continental Free Trade Area agreement (AfCFTA) has the potential to be the World’s biggest free-trading bloc, with a market of around 1.3 billion people and a combined gross domestic product of $2.5 trillion. Politicians will not lead the future of Africa. The future we want for our children and grandchildren should start with building our economies. Young people are voicing strong support for economic and business diplomacy development rather than political ideals. Looking towards Africa’s future, there is no doubt that young people will be critical drivers of social and economic change across sectors.
In November 2023, Paul Kagame of Rwanda and William Ruto of Kenya scrapped visas for all Africans to enter their respective countries. “By the end of this year, no African will be required to have a visa to come to Kenya,” Kenya’s president, William Ruto, declared at a climate change conference in Congo-Brazzaville. These moves will contribute to accelerating the implementation of the African Continental Free Trade Area agreement by opening up free movement of people and goods and trade.
President William Ruto declares that move aims to facilitate the execution of the African Continental Free Trade Agreement across Africa. “It is time we realize the importance of trading among ourselves and allowing goods, services, people and ideas to move freely across the continent,” he added.
Africa is building more economic builders than political leaders
Figure: Anthony Blinken at the US-Africa Leaders’ Summit 2022
Source: US Africa Media Hub on Twitter, 2022
US policy in Africa has been thrown off course by China, which is methodically implementing a grand, 21st-century Marshall Plan for the continent through its Belt and Road Initiative. And Beijing is hardly to blame.
As home to a large share of the world’s water resources, untapped arable land, and by 2050 nearly 25 percent of the world’s population, Africa has emerged as the most important piece on the geopolitical chessboard.
Africa has become the global competition ground for global multinational companies from several countries such as America, France, and China. For example, American companies doing business in Africa include General Electric, Google, Apple, Walmart, Microsoft, Boeing, etc. China also has multinational such as China Petrochemical Corporation, Sinopec, CITIC Group, State Grid Corporation of China, Huawei Investment & Holding Co Ltd, China National Chemical Corporation (ChemChina), and China National Offshore Oil Corporation (CNOOC). France also accounts for thousands and thousands of multinationals in Africa, including Bollore, Orange Group, Bouygues Telecom, Societe Generale, Total, and LVMH. An interesting part of the competition is that it evolves around economic games. In other words, these world-class companies represent gigantic economic powerhouses for their respective nations and their African business counterparts.
Days where Africa was not important to the world are gone. Continental champions such Aliko Dangote from Nigeria, Jean Louis Billon, Mike Adenuga, Saïd Alj, Jacques Ponty, Ali Berbich, Bertand Vignes, and many more are joining the competition game and building industrial powerhouses across the African continent.
The continent has become a strategic competition ground among major powers. This competition could turn into high politics as it gains momentum in Africa every year. This, however, will complicate things for African governments who lack clear vision of where they want their countries to go in the coming years. The Horn of Africa’s important geopolitical and geostrategic position continues to attract several major foreign countries.
Final Thoughts
Africa’s future is bright, and there is no doubt that it has become the center of gravity of the world in business, politics, and diplomacy. Africa has been the playground of great powers whose sole interests remain economic. Africa’s future will be made possible by a strong partnership among different players across the developing sector: youth entrepreneurs, investors who have Africa’s interest at heart, academia, nonprofit organizations without foreign agendas, African multinational companies, and local business leaders. As the world seeks to make the most of its future investments in Africa, governments must continue to invest in their technological innovation capacity.
Africa is writing a new chapter in the history of its international relations. Long-term prosperity requires strengthening Africa’s international standing. It requires that Africa emphasizes investment and innovation that meet the demands on the grounds. Realizing the tremendous potential for growth and prosperity in a world dominated by a one-way discourse, all 54 countries must understand that they possess the future of the world in their hands. This future will be designed to meet their needs and realities rather than those elsewhere in the world. Every African nation will need to accept a business environment that favors youth entrepreneurship, youth technology innovation, win-win public-private partnership, and geopolitical intelligence culture building.
Author The Author
Jean Narcisse Djaha, PhD, Founding President and Chairman of the African Council on Foreign Relations. He is guided by Romans 8:30” And those he predestined, he also called; those he called, he also justified; those he justified, he also glorified”.
References
https://www.mckinsey.com/industries/agriculture/our-insights/winning-in-africas-agricultural-market )
https://www.worldbank.org/en/topic/agriculture/overview
https://bscholarly.com/most-technology-advanced-countries-in-africa/
https://unctad.org/news/investment-flows-africa-reached-record-83-billion-2021
https://www.avca-africa.org/media/3064/02080-avca-vc-mid-year-report-sept22-online_2.pdf
