Africa: A continent making connections
We live in a world that feels increasingly fragmented, especially as international divisions seem more apparent than ever and the post-pandemic fracturing of social and economic life makes us increasingly aware of what makes us all different, rather than what unites us.
But despite this apparent atomization, some countries are working towards a bigger, more unified vision of international and economic cooperation. A perhaps under-reported area where this is happening is on the continent of Africa.
A demographic tailwind
Africa is a continent where a population boom is underway. By 2050 it is expected that Africa will account for 25% of the global population. What’s more, this is a population with a high proportion of working age adults; setting the scene for a further upswing in economic activity as the populations grows.
An investment magnet
If Africa’s remarkable demographic growth is putting the wind in the sails of its economic growth potential, its role as a growing recipient of investment flows in recent years could help it chart the way to accelerated economic growth. Foreign direct investment (FDI) into Africa hit a record £80 billion in 2021, and economic growth rates on the continent have quadrupled since 2000.
In a bid to capitalise on this trend and further attract investment, African countries have started creating special economic zones to position the continent as a hub for economic development. According to a press release by the African Union, “African Special Economic Zones are considered as one of the main instruments that stimulate economic reforms, promote quality Foreign direct investments (FDIs), and accelerate industrialization across the continent.”
Building a digital single market
As part of its bid to create the largest free trade area in the world – the African Continental Free Trade Area (AfCFTA) – the African union is embracing the interconnectivity potential of digital technology, with ambitions to create what it calls a ‘digital single market’ which aims to lower barriers to trade and communication. “Connections to neighboring countries, to regions, and to the entire continent are key to sparking economic growth, creating jobs, and moving Africa into the digital age,” writes Baidy T. Sy, a Digital Development Specialist at the World Bank.
By unleashing digital technology to help supercharge economic growth, AfCFTA is projected to become a $3 trillion borderless market with the potential to address poverty, redress inequality and foster sustainable development.
It’s a promising vision for fostering an interconnected, growth-led economic powerhouse and an instructive lesson on how sustainable growth and cross-border cooperation can be achieved by harnessing digital technology and embracing cross-border cooperation.
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