How Africa is becoming the world's next economic powerhouse
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Acclaimed journalist Crystal Orderson specialises in economic and political affairs on the African continent. She joins Stephen Grootes on The Money Show to provide insights into significant investment trends and growth opportunities in Africa.
The International Monetary Fund (IMF) states in their latest report that Africa has experienced a hard-won recovery post-Covid, though recent global events, including external funding constraints, the debt crisis, a downturn in global demand, and massive aid cuts, will impact the growth rate in Africa.
However, the continent's economic landscape is vibrant and dynamic. The World Bank projects a growth rate of 3.7%, and the African Development Bank is forecasting an even more optimistic 4.3% growth rate, says Orderson.
"Despite all the challenges and geopolitical shifts, there is still a significant opportunity here in Africa."
- Crystal Orderson, Journalist
Orderson weighs in on the impact of geopolitics and highlights a significant moment when President Cyril Ramaphosa and Rwandan President Paul Kagame shared a platform at the Africa CEO Forum in Abidjan on Tuesday.
Both agreed they needed to focus on the continent's resilience.
"Because Africa is an engine of growth."
- Crystal Orderson, Journalist
Where will the growth come from?
Orderson says emerging economies are stealing the spotlight, describing these countries as 'rising stars'. Despite being the biggest economies on the continent, the growth is not going to come from South Africa and Egypt.
East and West Africa are leading the charge:
- Rwanda: 7.1% growth
- Senegal: 8.4% growth
- Kenya: 4.8% growth
- Uganda: 6.1% growth
- Ivory Coast: 6% growth
The World Bank's private investment arm, the International Finance Corporation (IFC), is betting on Africa and planning to invest $14.2 billion in critical sectors.
"They say they are going to invest heavily across Africa in digital infrastructure, agriculture, manufacturing, business development, and clean energy."
- Crystal Orderson, Journalist covering African issues
Africa boasts an enormous surface area and is home to minerals and natural resources.
"We have about 30% of the globe's critical minerals. So a big issue is roads, ports, and infrastructure - and there is massive money in that. Experts say there are two to three trillion dollars available in different pension funds"
- Crystal Orderson, Journalist
This is where the private sector banks and governments are forging public-private partnerships to see this investment unfold, she adds.
The RMB Where to Invest in Africa Report shows Africa's five top investment destinations.
"The Island economies, like Mauritius, and then Egypt, Morocco and South Africa."
- Crystal Orderson, Journalist
As a journalist, Orderson has visited Ethiopia many times over the years. She says the country stands out as a compelling case study of transformation. Once plagued by infrastructure challenges, it has dramatically improved its internet connectivity, road systems, and economic stability through strategic investments and diaspora engagement.
The G20 and B20 summits, with South Africa in leadership, are creating unprecedented platforms for economic dialogue and collaboration. The African Union's membership in these forums signals a new era of global economic participation.
"There is a realisation in Africa they cannot do it alone and need help to start unlocking growth."
- Crystal Orderson, Journalist
"Things are moving," Orderson emphasises. "The realisation around infrastructure, digital economy, and access to technology are game-changers, and we're seeing significant changes across the continent.
The continent's narrative is no longer centred on survival but rather on strategic growth, sustainable investment, innovation, and global leadership.