Africa speaks
How to achieve and sustain economic growth in Africa
- African economies are among the least connected globally, yet demonstrating progressive structural improvements toward higher levels of integration with their respective regions and the world.
- Integration with regional and global economies is seen as pivotal for sustained, elevated and inclusive growth. Deep and broad integration important for sustained growth.
Titled Connecting for Growth, Economic Inclusion & Prosperity, the research expands on previous editions to include more countries. Assimilating country and industry data, together with information proprietary to Visa, the index measures and offers insight into economic connectedness for sub-Saharan economies.
Inclusive growth
“The evidence of the past five decades is that the pivotal factor for sustained, elevated and inclusive growth is the ability of countries to connect functionally and effectively to others,“ says Dr Adrian Saville, the report’s author, and Professor in economics and competitive strategy at the Gordon Institute of Business Science.
“To achieve and sustain the growth rates Africa has seen has only been possible because the world economy is more open and integrated. The Visa Africa Integration Index aims to improve our understanding on the importance of economic connectedness and to redress the deficit in information and knowledge on the mechanisms of socio-economic integration, which enable and promote social and economic development.”
This year’s report sees five clear trends.
- First, sub-Saharan African economies rank amongst the least connected in the world. However, since measurement began five years ago, the evidence points to connections growing quickly and effectively, particularly in East Africa, although Cameroon, Ghana and Zambia also stand out.
- Second, in line with data for different countries studied over other periods, there is a strong correspondence between rising connectedness and improvements in economic and social wellbeing. For example, Rwanda has displayed the largest relative gain in connectedness amongst the 19 countries in the index, which has manifested in a gain in per person income of 7.0% per year.
- Third, the index also shows that some countries are more integrated globally than regionally and vice versa, which is important information for policy makers who aim to deepen and broaden integration in their respective regions. This is an important point because regional integration is a more powerful and sustained contributor to socio-economic advance than global integration. Yet, the regional connectedness for sub-Saharan economies lags other areas by a wide margin.
- Fourth, all boats do not rise with the same tide. Whilst Kenya and Rwanda have made large gains in connectedness off relatively low bases over the five years covered by this research, Botswana has not moved much off its relatively high base, and Angola has struggled to improve off a low base. The Democratic Republic of Congo’s score has fallen.
- Fifth, there is a strong, positive correlation between changes in economic connectedness and per capita incomes for the 19 countries over the six-year period 2011-2016 covered by the index.
“An integrated Africa would be one of the largest economies in the world, providing sustained and inclusive economic opportunities for everyone, everywhere.”
“An integrated Africa would be one of the largest economies in the world, providing sustained and inclusive economic opportunities for everyone, everywhere. We believe that a core building block to achieve that vision is an open and universal payment network which enables all Africans, consumers, merchants and financial institutions, to connect and exchange value, irrespective of borders,” says Andrew Torre, president for Visa sub-Sahara Africa.
“Africa’s global leadership in digitising cash illustrates the region’s potential in the 21st Century knowledge economy. Converting that potential into sustainable business models requires an ecosystem approach that transcends narrow interests, creating partnerships around open and competitive financial systems for the benefit of everyone. We are incredibly optimistic about the potential for this continent and its people, and look forward to investing for its future.”
Why connectedness matters
The extent and nature of a country’s connections to both the global and regional economy is one of the single biggest influencers of socio-economic change. While mainstream measures of economic integration have focused more intently on trade flows and capital movements, they have a tendency to overlook other key pillars of economic connectedness, such as flows of information, knowledge, data and people, across borders.
Deep and broad connections
The Africa Integration Index also looks at the nature of a country’s connectedness as a sign of sustained impact. Deeply integrated economies are open and highly connected to the rest of the world. However, integration only becomes “deep and broad” if a highly-connected economy is engaged with a wide variety of counter parties across the different strands of global relationships.
For example, while Angolan crude petroleum makes up 91% of exports, two thirds of it go to just three countries – China, India and the United States. This makes Angola’s connectedness narrow. Conversely, Polish exports, which range from gas turbines and rubber tires, through to rolled tobacco and poultry, find their markets in over 75 countries.
Measuring economic integration by way of depth and breadth provides for a better understanding of the nature of cross-country economic integration.
Unstoppable Africa 2023 has concluded, leaving a profound mark on the African continent. The two-day Global Africa Business Initiative (GABI) event aims to boost Africa’s standing in the global economy and establish the continent as the foremost destination for business, trade, and investment. This transformative gathering on the sidelines of the UN General Assembly has not only chartered the course for economic growth but has also solidified GABI’s pivotal role as a catalyst for change and progress.
On the second day of the event, Caroline Wanga, CEO of Essence Ventures, emphasized the importance of authentically portraying African narratives. She highlighted that the continent’s rich heritage has traditionally been expressed through its unique storytelling methods. Wanga stated, “In discussing Africa, it’s vital to engage in genuine dialogue. We’ve celebrated our heritage through our distinct method of storytelling, which the world is longing for now more than ever. As the overseer of Essence Ventures and other platforms, I am committed to ensuring our tales are told from a position of strength and authenticity.”
The final day of the Unstoppable Africa 2023 featured a chorus of leading private sector voices. Notably, leaders from the business and media world such as Jeff Wong, EY Global Chief Innovation Officer; Niraj Varia, CEO of iProcure Ventures; Lakeshia Ford, Founder of Ford Communications; Claudia Kwarteng–Lumor, Founder of Kollage Media, producers of GLITZ AFRICA Magazine and Somachi Chris-Asoluka, CEO of The Tony Elumelu Foundation (TEF).
Complementing these luminaries were esteemed figures from government and international organizations, including President Masisi, H.E. Felix Tshisekedi, President of the Democratic Republic of Congo, Adebayo Olawale Edun, Minister of Finance and the Coordinating Minister of the Economy for Nigeria, Joy Basu, Deputy Assistant Secretary, Bureau of African Affairs at the US Department of State.
Unstoppable Africa Conference: Dr. Akinwuni Adesina and H.E. William Ruto (Image: Supplied)
Leaders from global business, investment, government, sports, and the arts gathered in New York on Thursday, 21st September to mark the commencement of “Unstoppable Africa”. The event by the Global Africa Business Initiative (GABI) seeks to elevate Africa’s prominence in the global economy and position the continent as the premier destination for business, trade, and investment.
The two-day event is co-convened by the United Nations Deputy Secretary General, Amina J. Mohamed and the Chairperson of the African Union H.E. Moussa Faki Mahamat on the sidelines of the United Nations General Assembly in New York. GABI, coordinated by the UN Global Compact, serves as a pivotal forum for Heads of State and Government, CEOs, investors, policymakers, industry experts, and U.N. leaders to discuss and strategize the way forward for Africa’s dynamic business landscape. “Unstoppable Africa” is a powerful affirmation of GABI’s unwavering commitment to redefining Africa’s economic narrative.
On day one, the flagship event attracted an impressive array of speakers and participants, including the Presidents of Ghana, H.E. Nana Addo Dankwa Akufo-Addo, Kenya, H.E. William Samoe Ruto, Senegal, H.E Macky Sall Poland H.E Andrzej Duda and H.E Mia Mottley, Prime Minister of Barbados. In addition to government ministers, “Unstoppable Africa” welcomed a who’s who of renowned business titans such as Mo Ibrahim, the Sudanese-British businessman and philanthropist, Phumzile Langeni, Deputy Chairman of Imperial Logistics; Non-Executive Director of DP World Group, James Manyika, Senior Vice-President of Research, Technology and Society at Google-Alphabet, and Brad Smith, President of Microsoft among others. Senegalese artist Baaba Maal set the tone for the event with a captivating performance calling for peace and prosperity in Africa while actor Arsema Thomas engaged in an insightful interview conducted by the event’s host Folly Bah Thibault from Al Jazeera English.
UN Secretary-General António Guterres opened the two-day forum making a compelling call for the “delivery of justice” – a theme central to the continent’s sustainable development. The UN Secretary-General stated that “justice means reforming outdated, unfair and dysfunctional global financial systems and ensuring African representation at every multilateral table”.
H.E. Mia Mottley, Prime Minister of Barbados emphasized the difference between ambition and meaningful action, in the context of Africa. Recognizing the emerging unity and collaborative efforts across the continent, she highlighted the imperative for accelerated progress in Africa. Her message underscored the urgency for nations to move from plans to concrete actions that catalyze transformative change on the continent.
During a major event announcement, Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), announced a transformative partnership with Google, creating a Centre of Excellence for coding in Africa.
Other announcements on the day included The Democratic Republic of Congo’s (DRC) commitment to positioning the country high-up in the batteries and electric vehicles value chains, unveiling a new 1,000-hectare space in Kolwezi, with special economic zone status. DRC’s Minister of Industry, H.E. Julien Paluku, appealed to global investors to join these initiatives in addressing climate change while advancing economic growth. the launch of Ghana’s Energy Blue Zone Initiative, heralding a major stride in the country’s energy transition and investment plans.
The “Unstoppable Africa” event promises to continue its momentum into the second day, where further thought-provoking discussions, innovative solutions, and collaborative endeavors are set to shape Africa’s role in the global economy. Leaders from various sectors, including business, government, and civil society, will come together to exchange ideas, forge partnerships, and chart a course toward a more prosperous and sustainable future for Africa and the world.
Ayomide Idogun is the co-founder at the New African Movement, an initiative aimed at ensuring Africa is conducive for Africans. Ayomide is a development strategist, policy analyst, and military historian with a major flair for transformative change through strategic thought, leadership, and empowerment.
Recently, he had the opportunity to be a delegate at the Arab Youth International Model United Nations Conference, now known as the Best Diplomats Conference, held in Dubai. Beyond the piquancy that came with meeting over 150 people from about 80 countries, and the experience of learning different cultures, the delegates were largely charged with proffering solutions to solving the global food crisis. Ayomide represented the great people of Guatemala, who sadly are no strangers to this phenomenon, with 4.6 million people at the least, facing the hunger crisis, and suffering hugely from food insecurity.
This led him to come up with prospective solutions, to ensure farmer empowerment, and the mitigation of factors hindering food supply minimized to the barest minimum, so as to ensure Guatemala does not just become self-sustaining, but grows to the point of exporting food produce to other Nations. His efforts did not go unrewarded as he bagged the Outstanding Diplomat Award, in recognition of his outstanding negotiation, leadership, and overall performance during the course of the conference.
He is a trainer and speaker with core area in leadership, capacity building and development. Some of his engagements amongst others, includes, training members of the African community in the United Arab Emirates, on capacity building and maximizing potentials, to ensure their time and resources are utilized to maximal effect. And at the maiden edition of DisruptHR Lagos, organized by OutsideinHR, where he spoke on the role COVID-19 played on priorities for humanity, and the ever-changing landscape of work.
Ayomide Idogun holds a degree in Policy and Strategic Studies from Covenant University, a second degree in History and Strategic Studies from the University of Lagos, and he is currently enrolled in the School of Politics, Policy and Governance, where he is undergoing the Public Leadership and Policy Programme.
