ABiQ outlines 5 ways to strengthen African capacity for development.
Africa is the land of opportunity. Africa is a continent rich in natural resources and home to an abundance of untapped opportunity waiting to be utilised. How do we strengthen Africa’s capacity for development? Read on to find out more:
1. Attract foreign investment
While Africa as a whole benefited from $83 billion in foreign investment during 2021, more than 45% of this flowed into South Africa. The top 5 African countries in terms of Foreign Direct Investment (FDI) include:
- South Africa – $40.9 Billion
- Egypt – $5.1 Billion
- Nigeria – $4.8 Billion
- Ethiopia – $4.3 Billion
- Republic of the Congo – $3.7 Billion
This doesn’t leave much room for the remaining 49 countries in Africa. African countries need to look at attracting foreign investment to support their capacity for development.
2. Improve infrastructure
Africa as a whole is in desperate need of improved and renewed infrastructure. Infrastructure is a vital catalyst for development across the African continent. Robust infrastructure facilitates productivity and long-term economic growth. Improving infrastructure will provide a substantial contribution to the continent’s development, and help to alleviate issues related to poverty.
3. Unleash the power of the youth and bolster innovative approaches
Africa is the continent with the youngest population worldwide. Roughly 60% of the entire continent is below the age of 25. The younger generation has the capacity to act as a significant driver of both economic growth and social advancement, particularly in Africa. Young people hold a wealth of creativity that could potentially contribute to addressing major concerns, including poverty and climate change.
4. Seek out alternative energy supply options
Renewable energy has been on the top of people’s tongues for many years now, however, the adoption of renewable energy in Africa has been lagging. Africa has vast potential for wind, solar, hydro, and geothermal energy. Renewable energy sources are slowly becoming more cost-competitive bringing renewable energy within reach. Access to energy is vital for the reduction of poverty and for increased economic growth.
5. Support SMEs
Africa needs to embrace and enable Small and Medium Enterprises (SMEs). SMEs play a vital role in developing countries as they are important contributors for job creation and economic growth. Governments cannot create the millions of jobs needed to meet the demands in Africa – they need SMEs to help. Furthering government support for SMEs and ensuring their sustainability will further strengthen African capacity for development.
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