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Owning our destiny: economic prospects for Africa

Yemi Kale is the Group Chief Economist of the African Export-Import Bank. In this editorial, he reflects on the prospects for Africa’s future following the Afreximbank 2024 Annual Meetings, held in Nassau, Bahamas, on the theme of ‘Owning our Destiny: Economic Prosperity on a Platform of Global Africa’. 

As I reflect on the discussions in Nassau, I am reminded about what really matters, not only in my professional capacity but as a citizen of Africa and stakeholder in the Global Africa movement. Being principally responsible for the intellectual sessions of the three-day meetings, I could clearly see the imperative for Africa to harness its own resources, creativity, and entrepreneurial spirit to chart a path toward sustainable growth and global influence.

For too long, Africa has been viewed through a lens of poverty, conflict, fragility, and instability. Africa's development has been shaped by external forces—colonialism, foreign aid, and global economic dynamics. A divided Africa—of about 2 billion people worldwide—has certainly not thrived in its fragmentation. While these narratives and influences slow the continent’s growth and development, they also obscure the continent’s inherent strengths and prevent Africa from reaching its full potential. 

The conversations in Nassau indicate that this narrative is undergoing a profound transformation. Africa is increasingly recognized for its vast natural resources, its cosmopolitan, young, and dynamic population, its vibrant culture, and its growing consumer class. Africans are now appreciating the vision of their forefathers and embracing a unified ‘Global Africa’. The concept emphasizes the interconnectedness of Africans and the importance of collaboration and unity in achieving prosperity in a world of growing isolationism and neo-protectionism. 

Strengthening regional integration 

A key component of this vision is the promotion of intra-African trade, which is currently at 14.9%, one of the lowest when compared with other regions. Beyond Africa, the vision aims to enhance Afri-Caribbean trade. To increase intra-African trade and Afri-Caribbean trade, African governments and institutions must prioritize the establishment of sea and air links within the continent and between these two regions to facilitate trade and human resource exchanges that will foster skills, knowledge, and technology transfers. Furthermore, we must collectively build strong and sizeable continental regional development financial institutions. 

Technological innovation 

Africa is home to a growing community of tech entrepreneurs who are leveraging technology to solve some of global Africans’ most pressing challenges. From mobile money platforms that support home remittances to telemedicine services, African startups are at the forefront of digital innovation. 

Empowered human and natural capital 

Africa is rich in natural resources and boasts the world’s youngest population. The African Union estimates that Africa has over 400 million people aged 15 to 35 years. Correctly harnessing this youthful energy for innovation and growth will be critical to Africa’s development. Equipping young Africans with the skills and education to thrive in a digital economy can transform global Africa into a hub of technological advancement. Moreover, fostering an entrepreneurial mindset and providing access to capital can unleash a wave of African startups. 

Although Africa is richly endowed with natural resources, Africa must focus on value addition and end the historical pattern of exporting raw materials and importing finished goods which perpetuates economic dependency. This means developing industries, such as the electric vehicle sector, that can beneficiate rare earth metals and other such raw materials domestically.

Harnessing the diaspora 

With over 200 million people of African descent living outside the continent, the African diaspora, represents a vast reservoir of talent, expertise, and financial resources that can be engaged through investment opportunities, knowledge transfer, and cultural exchange to accelerate Africa’s development. Beyond the financial capital inflows from the African diaspora, are the human capital investments made when experienced and empowered ‘repatriates’ return home to help build their countries, cities, and communities of origin.

Sustainable development 

A Global Africa vision must prioritize sustainable development in the Caribbean and Africa’s fragile ecosystems. Both regions are particularly vulnerable to the impacts of climate change with significant impacts on agriculture, water resources, and health. Africa’s path to prosperity for all Africans must prioritize sustainable development and invest in renewable energy, sustainable agriculture, and climate-resilient infrastructure.

Cultural pride and identity

Africa has a rich and diverse cultural heritage—a source of strength and resilience for its people. By celebrating and preserving this heritage, Africans all over the world can build a sense of unity, solidarity, and a shared history and prosperity that transcends borders and fosters a sense of belonging and pride. This can help to counter negative stereotypes and perceptions of Africa and promote a more positive image of the continent. 

What is Afreximbank doing?

Afreximbank has spearheaded several projects and initiatives that embody this Global Africa narrative including:

• the Intra-Africa Trade Fair, which provides a platform for Global African businesses to explore trade and investment opportunities
• MANSA repository, which provides reliable information about African businesses
• Pan-African Payment and Settlement System 
• Cultural promotion programmes such as Creative Africa Nexus (CANEX) 

The Global Africa narrative, championed by Afreximbank, is a powerful tool in reshaping perceptions and driving development. Afreximbank is not only promoting economic growth but also advocating for comprehensive and reparative justice that acknowledges Africa’s historical experiences. 

As we navigate the complexities of a rapidly changing global landscape, it is becoming increasingly clear that the future of economic prosperity lies in Africa's hands. 

Dr. Yemi Kale is the Group Chief Economist & Managing Director of Research and International Cooperation at Afreximbank, Egypt. He was formerly a Partner and Chief Economist, at KPMG, Nigeria. Prior to this, he served as the Statistician General and CEO of the National Bureau of Statistics, Nigeria.

The views expressed in this piece are those of the authors, and do not necessarily reflect the views of the Institute or the United Nations University, nor the programme/project donors.