In an effort to propel Africa’s economic transformation, Nigerian billionaire businessman Tony Elumelu is calling on global investors to capitalize on the continent’s projected $450 billion Gross Domestic Product (GDP) boost from the African Continental Free Trade Area (AfCFTA) by 2035. This ambitious goal is poised to create a single market of 1.3 billion people, unlocking unprecedented opportunities for economic growth, innovation, and collaboration.
The AfCFTA is a landmark agreement that aims to promote economic integration, increase trade, and stimulate economic growth across Africa. By eliminating tariffs and non-tariff barriers, the AfCFTA is expected to increase intra-African trade by 52% by 2025, creating a vast market for businesses to tap into. Elumelu emphasizes that Africa’s youthful population, abundant natural resources, and rapidly expanding digital economy make it an attractive destination for investors seeking long-term growth and returns.
Elumelu highlights several key sectors that offer promising investment opportunities in Africa, including:
- Digital Economy: Africa’s digital economy is growing rapidly, with internet penetration reaching 45% in 2023 and tech startups raising a record $5 billion in 2022.
- Renewable Energy: Africa is richly endowed with renewable energy resources, including solar, wind, and hydroelectric power, offering opportunities for investors to support the transition to clean energy.
- Agriculture: Agriculture is a critical sector in Africa, accounting for 23% of the continent’s GDP and employing 60% of the workforce. Investors can support agricultural development by investing in irrigation systems, fertilizers, and other inputs.
The Tony Elumelu Foundation (TEF) has been at the forefront of empowering African entrepreneurs, investing over $100 million in nearly 10,000 entrepreneurs across all 54 African countries. The foundation’s entrepreneurial program has created over 800,000 jobs and lifted two million people out of poverty. Elumelu emphasizes the importance of supporting African entrepreneurs, who are critical drivers of economic growth, innovation, and job creation.
To unlock Africa’s full potential, Elumelu stresses the need for investment in critical infrastructure, including:
- – Broadband Infrastructure: Expanding broadband infrastructure is essential for supporting Africa’s growing digital economy and enabling businesses to operate efficiently.
– Power Generation: Increasing power generation is critical for supporting economic growth, industrialization, and job creation.
– Financial Access: Improving financial access is essential for supporting entrepreneurs, small businesses, and low-income households.
As Africa continues to navigate the complexities of economic development, it is essential that global investors recognize the continent’s vast potential and opportunities for growth. By investing in Africa’s critical infrastructure, supporting entrepreneurs, and promoting economic integration, investors can play a critical role in unlocking the continent’s $450 billion growth potential and creating a brighter future for millions of Africans.