Global economies are undergoing a massive transformation, shaped by shifts in geopolitics, culture, demographics, technology, and volatile trade dynamics. Old certainties are gone; new certainties yet to emerge.
Where is Africa in this new world order? Africa, a continent rich in potential, with its youthful population, natural resources, and dynamic entrepreneurial spirit. Too often overlooked, the future of the world is going to be increasingly influenced by Africa and Africans. How can the world partner with Africa to unlock the huge opportunities present, for mutual and lasting benefit?
The African Development Bank forecasts that Africa’s GDP will grow at an average of 4% per year over the next decade, largely driven by entrepreneurship and innovation. With internet penetration reaching 45% in 2023, Africa is enjoying a digital revolution, opening vast opportunities for connectivity and commerce. The African Continental Free Trade Area (AfCFTA) aims to create a unified market for goods and services across the continent, and according to the IMF, it is projected to boost intra-African trade by 52% by the year 2025. Traditional trade models, which have often excluded or marginalised Africa, must evolve. AfCFTA represents a bold step towards redefining trade dynamics. By uniting 55 countries into a single market of 1.3 billion people, AfCFTA has the potential to add $450 billion to Africa’s GDP by 2035.
This initiative is critical for establishing the infrastructure necessary for accelerated development. In 2022 alone, African tech startups raised a record $5 billion, a figure that continues to rise, highlighting the continent’s vibrant entrepreneurial landscape. Technology is revolutionising trade and economies in ways we could not have imagined a decade ago. African innovators are creating solutions tailored to our unique challenges. Mobile money platforms have transformed financial systems, enabling millions to access banking services. E-commerce platforms are breaking down traditional barriers to trade.
These statistics illustrate the immense potential Africa offers, particularly in entrepreneurship, the backbone of the continent’s economic growth. Small and medium-sized enterprises (SMEs) account for approximately 80% of employment in Africa, while the agricultural sector has the capacity to become a leading source of food export.
However, to harness these opportunities fully, Africa’s economic growth must be equitable: Africans need to get real value from their commodity supply chain by participating, barriers to agricultural exports need to be removed, the impact of climate change acknowledged by the polluters: and inclusive: benefiting women, youth, and marginalised communities. With over 60% of its population under the age of 25, Africa’s youth represent a vast reservoir of talent and creativity. Yet, women entrepreneurs face particularly significant barriers in accessing capital, markets, and networks, while our young grapple with high unemployment rates. To fully leverage technology, we must address the digital divide. Investments in broadband infrastructure, digital literacy, and cybersecurity are critical to ensuring that technology drives equitable growth. Power needs to reach African homes and African businesses.
ال مؤسسة توني إلوميلو has shown how innovation and execution can transform lives, through its unique approach of creating shared prosperity, an approach that has uplifted millions. Our philosophy of Africapitalism encapsulates this vision, emphasising the critical role of the private sector, particularly African businesses, in driving economic and social development.
Since 2010, the Tony Elumelu Foundation has invested over $100 million in direct funding to bring the visions of over 21,000 young African entrepreneurs across the continent to life. 12,000 of those beneficiaries are female. These innovators have gone on to create over 800,000 direct and indirect jobs and generate more than $4.2 billion in revenue. Through our proprietary digital hub, TEFConnect, we have provided 2.5 million Africans with access to training, and our programme has contributed to lifting over 2 million Africans out of poverty, demonstrating the transformative power of African entrepreneurs.
Our initiative has demonstrated that, with the catalyst of entrepreneurship, we can, together, build resilient economies capable of weathering global uncertainties and domestic headwinds.
At the Tony Elumelu Foundation, we have not only invested our money, but we have also partnered. The partnerships have been successful, because they have recognised the unique execution capability we have created, and that an African approach is often the best approach to Africa’s development. Africa needs more partnerships, in energy, in infrastructure, in resources, but for global partnerships to flourish, they must be built on principles of equity and mutual respect. Supporting African trade and entrepreneurship should be viewed as an investment in global stability and prosperity. The traditional donor-recipient model must evolve into one of shared goals and collaborative efforts.
As we look forward to what can be, and demographically, will be an African century, we need all to ensure that Africa’s voice is heard, that the legitimate needs of Africa are addressed, that partnerships are established equitably and meaningfully, and that entrepreneurship, as the foundation for this bright future, flourishes.
About Tony Elumelu
Tony O. Elumelu, CFR, whom Time recognised as one of the world’s most influential people in 2020, is one of Africa’s perhaps most influential entrepreneurs, businessmen, and philanthropists. He serves as Chairman of family-owned leading investment company, Heirs Holdings, and of United Bank for Africa (UBA), Africa’s global banking with presence across 24 African countries, UK, US, Dubai, and France. Named one of the 50 wealthiest Africans by Forbes, Mr. Elumelu and his wife committed $100 million of their family fortune to empower 20,000 entrepreneurs across 54 African countries through the Tony Elumelu Foundation (TEF).