Globe Chamber of Commerce and Industry in partnership with Trade Nigeria, Federal Ministry and Japanese Trade Organization presents the Asia - Africa Economic and Investment Forum 2021. The Asia-Africa Economic forum 2021, Tokyo, Japan is designed to showcase Africa with a view to create business opportunity and strengthen trade and Investment relationships between Africa and the rest of the world.
Africa does not need aid but trade, International assistance may remain important to some countries. However, it is through investment that Africa’s development and prosperity will be guaranteed.
Yet in the field of investment, some international countries seem to be taking a back seat; quite the paradox, given that it also deplores the fact that Africa seeks such investments from those who treat us as legitimate business partners, such as Japan, China etc. Located between Asia, Europe and the Americas, Africa is at the center of international trade. More than a mere geographical fact, day after day our continent acquires more and more means to contribute to wider global growth.
Before becoming a great economic power, China was tipped as a future giant in large part thanks to its human capital. By 2050, Africa will be home to billions of inhabitants, a quarter of the world’s population — of whom a good number will be under the age of 18.
Just like China, in Africa human capital is a major asset. Regardless, we must continue to improve the prospects for our young people, who all too often search for opportunities elsewhere.
Customs barriers are holding back Africa’s market potential and that is why the continent is undertaking the construction of the world’s largest free trade zone. It will unite up to 55 states with a combined gross domestic product of $3.3tn. It will take Africa only 14 years to forge what has taken other continents decades.
According to Mukwege, African countries are among the richest on the planet, but their people are among the poorest in the world. By doing little more than exporting its raw materials, Africa forfeits any chance of creating jobs and wealth. This situation is in the process of changing; African economic growth is being driven by the demand of the continent’s growing middle class. The continent is industrializing and now intends to transform and add value to the goods it exports.
The latest international rankings offer encouraging signs. The inaugurations of several ports respond to growing demand in east Africa; railway networks are expanding at high speed in Morocco, Nigeria and in the Horn of Africa; and sub-Saharan economic growth is expected to reach 3.8 per cent in the coming years.
However, rather than spurring hope and confidence, our continent continues to evoke uncertainty and scepticism due often to preconceived ideas or inadequate analysis. The most commonly expressed concerns are related to debt. By becoming too indebted with certain creditors, mainly China, African countries are mortgaging their future sovereignty.
First, we note that those who once exercised their own power over our continent today appear to worry for our sovereignty. Their concerns fail to conceal their true motives. Some would argue that loss of influence is the real worry of those who persist in seeing the continent through the prism of the past.
That being said, debt is calculated on the basis of an assessment of a nation’s wealth. Many have put ambitious policies in place in order to regulate the informal economy that has, until now, not contributed to income taxes.
Regardless, many African nations are experiencing remarkable growth rates, with Rwanda at 8 per cent, Ethiopia at 11 per cent and Côte d’Ivoire at 7.2 per cent. Other countries on the continent will soon be in the same boat. On a practical level, this means that our nations are becoming richer, which ultimately strengthens their ability to pay off their debt.
The challenge is thus to ensure that such growth is sustainable and that Africa firmly integrates into the globalized world. To do so, the continent must prioritize addressing its infrastructure gap.
Investing in Africa will benefit the entire planet by strengthening Africa’s role as a natural bridge between continents and accelerating international trade.
