So far, many countries have considered Africa as a continent left to its fate, associated mainly with infrastructure deficiencies, poverty, hunger, or armed conflicts. Colonialism, years of deep-rooted social inequalities and lack of sufficient attention and help from the rest of the world, have contributed to the stigmatization of the African society and significantly limited its development.
However, for some time now, the global attitude towards the African continent has begun to change. Investors from Central Europe are getting more and more interested in African markets. The enormous potential of this continent has already been recognized, but it hasn't been developed in the right way. Instead, private companies focused more on exploiting its labor force and raw materials instead of contributing to Africa's sustainable development.
Jack Dorsey - CEO of Twitter and Square - as well as Elon Musk - CEO of Tesla Motors and SpaceX - have big hopes related to Africa. So far, most of the companies considering expanding geographical horizons of their activity have focused primarily on China and India, due to the local technological advances and increasing demand for broadly defined technologies. Global giants, such as General Electric and Microsoft, are also aware of the opportunities offered by Africa and consider it a market of big chances.
Sub-Saharan Africa comprises 48 countries, 33 of which are among the countries with the lowest Human Development Index results. Burkina Faso, Mali or Niger still have to fight against uncontrolled outbreaks of violence within their societies. Moreover, natural disasters, famine, and diseases still haunt the population of Africa.
However, there are also countries open to world-class business development. Africa, the leader in world population growth, is becoming an increasingly important player in the global economy. It is also worth noticing that on the 7th of July 2019, the official inauguration of AfCFTA, the African Continental Free Trade Area, took place. It is considered the most significant free trade agreement since the creation of the World Trade Organization. According to the Trade Law Centre, 54 out of 55 African countries have signed the deal. That offers an excellent opportunity to increase domestic export. Additionally, development impulse for African economies could create chances for broad global cooperation. Focus Economics considers 3 African economies to be among the five fastest-growing economies in the world in 2019.
Significant evidence of the Big Tech sector in Africa is the Silicon Accra. This Ghana-based technology park and innovation center – scheduled to open in 2022 - aims to become Africa's getaway to the world-class technology field. The city is supposed to become a home to research institutions, large companies, and start-ups intended to solve everyday problems of the society in unusual and avant-garde ways. Even some innovational American companies are negotiating to locate their branches in this African technology park in 2023.
Moreover, a study led by the African Development Bank showed that as much as 22% of the continent's working-age population decides to start their own business. Also, the Total Entrepreneurial Activity indicator among women in Africa is the highest in the world.
Entrepreneurs find great opportunities in introducing systems based on cloud computing. Giants, like Facebook or Google, are primarily focusing on providing the right internet infrastructure to reach a broader range of consumers. Jack Dorsey associates Africa with great opportunities related to cryptocurrency technologies. However, for now, one of the most rapidly growing sectors of technology is related to mobile payments.
However, we cannot forget about the SARS-CoV-2 virus taking its mighty tall in African countries. Local health care infrastructure is one of the least effective and hardest to access in the world. John Afele - principal of the African Sustainable Living Perspectives program – points out that the so-called New African Renaissance remains an illusion. Unequal access to education, incomplete infrastructure, and imperfect systems guaranteeing all citizens' safety still leave much to be desired.
Until Africa becomes a place providing a basic standard of living and safety for its people, its vast potential remains only a vision. However, other countries can, and actually should, support African growth by investments in technologies and essential infrastructure. Cooperation between countries and organizations from different continents could significantly boost African development.
It is crucial to avoid exploitation and growth of social injustice towards Africa and its citizens – the better economic situation around the world, the higher stages of economic development humanity can reach.
All of us can profit from sustainable growth around the globe! ;)
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