INTHEBLACK April 2025 - Magazine - Page 21
“Africa has made significant strides in expanding access to
education. Right now, the opportunity is even greater than
ever — the children of today will be part of Africa’s future
workforce, which is expected to nearly double by 2050.”
ANDREW DABALEN, WORLD BANK
AREAS OF OPPORTUNITY
Andrew Dabalen, chief economist for the Africa region at the World Bank,
envisages crucial opportunities for Sub-Saharan Africa on the following fronts:
• Demographics: Africa is urbanising faster than at any time in its history. “It has
a growing young population,” Dabalen says. “It is improving trading with itself
and other regions, from a low base. These factors offer opportunities
to investors to obtain talent for their businesses and larger markets and
customers for consumer goods, energy, food and healthcare.”
• Energy: African countries can potentially use their abundant natural resources
for clean energy solutions, including solar, wind and hydroelectric assets.
• Agriculture: There is the potential for higher returns on investments that shift
workers from fields to value-added food processing. “Consumers’ changing
tastes toward healthier foods will keep this segment innovative as well,
as agricultural practices are improved and the cold-storage transport system
is further developed,” Dabalen says.
• Infrastructure: Most infrastructure investments are in telecommunications,
transportation and utilities such as water and waste management. Dabalen says
improvement in infrastructure of any kind provides the foundation for broad
economic growth.
“This will also have an impact on the
logistics sector … These minerals are crucial
to global energy transition and digital
transformation. Therefore, this sector will
play a key role in 2025, driving growth
and FDI.”
GOING FOR GROWTH
The largest economies in Sub-Saharan Africa
— South Africa, Nigeria, Angola, Ethiopia
and Kenya — are all expected to register
growth in 2025, according to Deloitte Africa.
However, the pace of growth will be mixed.
Deloitte predicts that Ethiopia will lead
the region with 7.8 per cent GDP growth
on the back of infrastructure development
and a growing industrial base. Kenya should
expand 5.3 per cent, benefiting from robust
investments in real estate, power and services.
Nigeria can anticipate 3.4 per cent growth
as it leverages its natural resources and grows
its fintech and logistics sectors. Angola is
projected to grow at 3.2 per cent, thanks
mainly to its oil and gas sector. South Africa
is in line for modest growth of 2.6 per cent.
While structural issues run deep, Sisay
notes that investor sentiment and domestic
confidence are on the rise in South Africa
following elections last year, but that
“structural reforms and growing fixed
investments are imperative for South Africa’s
long-term prosperity and growth”.
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