RMB Africa9 May 2024 | 15:23

Innovation and tech igniting Africa’s growth momentum

Africa will account for eleven of the world’s 20 fastest-growing economies in 2024, the African Development Bank Group said in its latest Macroeconomic Performance and Outlook of the continent released in February 2024.

Innovation and tech igniting Africa’s growth momentum

The African Development Bank forecasts growth between 3.8% to 4.2% in 2024, which is above the global average of 2.9%.

East Africa is expected to lead growth at 5.1% in 2024 and 5.7% in 2025, with countries like Rwanda, Ethiopia, Tanzania, Uganda, and Kenya leading the way. West Africa's growth is projected to pick up around 4.4% in 2024 as well. Overall, the outlook remains positive. 

Bongani Bingwa is joined by Crystal Orderson, discussing Africa's use of Technology as an agent for growth.

"The continent is set to remain the second fastest growing region after Asia."

Technology is identified as the driving force for growth in Africa; there has been a big push for Digitalisation and is expected to surge, reaching over 1.1 billion users by 2029.

Increased access to mobile technology has enabled the rise of digital banking and financial inclusion, allowing more individuals and businesses to access credit and participate in the formal economy. Agriculture, which employs the majority of the workforce, is being transformed by innovations like mobile money platforms that help farmers obtain seeds and fertilizers.

Ethiopia is heavily investing in technology and digital infrastructure. Rwanda for example has pioneered models of using shared mobile phones to connect farmers to financial services. Meanwhile, Kenya has become a global hub for fintech with its thriving mobile money ecosystem.

"Small-holding farmers hold the key to development in most African countries."

Experts also point to Africa's growing potential in high-tech industries like artificial intelligence, given the continent's large youth population and growing technical skills base.

If governments and businesses continue supporting innovation, it could power Africa's rise for decades to come and dramatically improve livelihoods across the region. With the right policies, partnerships, and investments in areas like education, the continent is well positioned to capitalize on its innovation momentum.

Africa Focus, presented by Crystal Orderson, is brought to you by RMB. To find out more about RMB’s focus on Africa’s Investment opportunities, visit the official RMB website.