Global container throughput continues to rise, with the top 50 ports handling over 800 million twenty-foot equivalent units (TEUs) in 2023. The Port of Shanghai remains the world’s busiest, processing 47 million TEUs, followed by Singapore with 39 million. The expansion of the Panama and Suez Canals has further enhanced maritime efficiency, reducing transit times and bolstering global trade. According to the World Bank, port efficiency directly influences national GDP, with a 10% improvement in port operations contributing to a 3% increase in trade volume.

READ ALSO: GSCP to improve shipping across East Africa

Yet, global shipping faces mounting challenges, including supply chain bottlenecks and security risks. The ongoing Red Sea crisis has led to higher insurance premiums for shipping companies, while climate-induced disruptions, such as hurricanes and rising sea levels, threaten port infrastructure. These challenges underscore the urgent need for modernisation and investment in resilient port systems.

Africa’s ports are integral to the continent’s economic aspirations. They handle about 90% of Africa’s trade, moving over 500 million tonnes of cargo annually. In monetary terms, these ports facilitate trade worth over $400 billion each year, with imports constituting a significant portion of this figure. The United Nations Conference on Trade and Development (UNCTAD) reports that Africa’s maritime transport sector contributes roughly $100 billion to the continent’s GDP, highlighting its economic importance.

Major ports such as Durban (South Africa), Lagos (Nigeria), and Mombasa (Kenya) serve as critical gateways for both imports and exports. However, inefficiencies persist. According to the African Development Bank (AfDB), African ports experience an average dwell time of 20 days—substantially longer than the global benchmark of four days. These delays increase costs and deter investment. Infrastructure deficits exacerbate the problem, with only a handful of African ports, such as Tanger Med in Morocco and Port Said in Egypt, operating at globally competitive standards. The World Bank’s Container Port Performance Index (CPPI) ranks these as Africa’s top performers, yet many others struggle with outdated facilities and congestion. Additionally, port-related logistics account for up to 40% of total transport costs in Africa, compared to just 10% in developed economies.

Despite these challenges, Africa’s ports are undergoing significant transformation. Investments in port expansion and digitalisation are surging. The Lekki Deep Sea Port in Nigeria, operational since 2023, is expected to contribute $360 billion to the economy over its lifetime. Meanwhile, Kenya’s Lamu Port, part of the LAPSSET Corridor, aims to enhance regional connectivity, facilitating trade between East and Central Africa. Furthermore, expansions at Ghana’s Tema Port and Côte d’Ivoire’s Abidjan Port are boosting Africa’s competitiveness in global trade.

Sustainability and Innovation: The Future of African Ports

The future of Africa’s ports lies in modernisation and sustainability. Green port initiatives are gaining traction, with South Africa’s Transnet investing in electrification to reduce carbon emissions. Additionally, recycling and waste management efforts are improving. The Port of Durban, for example, has implemented waste-to-energy programmes that convert ship-generated waste into usable energy. According to the African Ports Environmental Report, waste management and pollution reduction are now priority areas, with initiatives focused on minimising plastic waste and improving oil spill response capabilities.

Smart port technologies, including blockchain-based cargo tracking and AI-driven logistics, are being deployed to reduce inefficiencies. The African Union’s 2050 Africa’s Integrated Maritime Strategy (AIMS) emphasises digitalisation and security to ensure African ports remain globally competitive. With port expansion projects exceeding $50 billion in investments, Africa is on a path to transforming its maritime landscape.

A New Dawn for African Trade

Africa’s ports stand at a crossroads. While inefficiencies and infrastructure gaps persist, significant investments and reforms are underway. As global trade evolves, Africa has a golden opportunity to enhance its maritime sector, driving economic transformation. By modernising ports, adopting green initiatives, and embracing technology, the continent can solidify its position as a key player in the global trade ecosystem. With annual port-driven revenues surpassing $400 billion and continued investment in sustainability and efficiency, Africa’s maritime sector is poised to become one of the continent’s leading economic drivers in the future.

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According to the International Energy Agency (IEA), global material consumption is projected to double by 2060, reaching 167 gigatonnes annually. The extraction of raw materials such as metals, fossil fuels, and biomass currently accounts for 50% of global carbon dioxide emissions, as reported by the United Nations Environment Programme (UNEP). Meanwhile, the Ellen MacArthur Foundation estimates that transitioning to a circular economy could reduce material-related emissions by up to 45% by 2050, highlighting the necessity of renewable materials in climate mitigation strategies.

READ ALSO: Africa’s Energy Independence: Is Nuclear Power a Viable Option?

The Energy Information Administration’s (EIA) International Energy Outlook projects that global energy consumption will increase by 34% between 2022 and 2050, outpacing advances in energy efficiency. Factors such as global population growth, increased regional manufacturing, and higher living standards contribute to rising consumption, leading to a projected 15% increase in global carbon dioxide emissions from energy by 2050.

The World Economic Forum reports that the global bioeconomy, which includes renewable materials, is valued at approximately $5 trillion. While Europe and North America lead the charge, Asia and Africa are rapidly increasing their footprint. According to the African Circular Economy Alliance (ACEA), Africa’s transition to renewable materials has the potential to inject an additional $4.5 trillion into its economy by 2030, driving employment, reducing waste, and mitigating environmental impact.

Africa’s Lithium Boom: A Renewable Energy Game-Changer

One of Africa’s most significant contributions to the global search for renewable materials is its vast lithium reserves. Lithium, a critical component in battery production for electric vehicles (EVs) and renewable energy storage, has made Africa a focal point for international investment. The continent holds an estimated 4.9 million metric tonnes of lithium reserves, with major deposits in Zimbabwe, the Democratic Republic of Congo, Mali, and Namibia.

Zimbabwe, home to one of the world’s largest lithium reserves, is rapidly becoming a key supplier of the mineral. The country produced approximately 1,200 metric tonnes of lithium in 2022, with projections to exceed 20,000 metric tonnes by 2025 due to foreign investments from China, the US, and Europe. The Bikita, Arcadia, and Zulu lithium mines are among the most prominent, attracting billions in funding. Meanwhile, Mali’s Goulamina lithium project, backed by Australia’s Firefinch Limited, is set to become a major global producer, contributing to the shift towards sustainable energy solutions.

As demand for electric vehicles surges, Africa’s lithium industry is expected to play a crucial role in reducing global reliance on fossil fuels. According to BloombergNEF, the global lithium-ion battery market is projected to reach $400 billion by 2030, with Africa poised to be a major supplier of raw materials. However, concerns over resource exploitation and fair value distribution remain critical. African governments are increasingly pushing for local processing and value addition, ensuring that lithium benefits the continent’s economy rather than merely serving as an export commodity.

The Agricultural Goldmine: Biomaterials and Organic Innovation

Africa’s vast agricultural sector is another frontier for renewable materials. The continent produces significant quantities of agricultural waste, much of which can be repurposed into bio-based alternatives. Over 70 million tonnes of crop residues are generated annually, providing a valuable resource for creating biodegradable packaging, bio-composites, and organic fertilisers.
Countries such as Ghana and Côte d’Ivoire, which together produce over 60% of the world’s cocoa, are exploring ways to repurpose cocoa husks into bioplastics and biofuels. Similarly, Ethiopia and Kenya, two of the largest coffee producers, are developing sustainable alternatives to petroleum-based materials using coffee husks and pulp. The integration of biomaterials into mainstream industries presents an opportunity for Africa to shift from an exporter of raw agricultural commodities to a global leader in sustainable material production.

Industrial Scale-Up: Renewable Construction and Textiles

The construction and textile industries are among the most resource-intensive sectors globally, and Africa is pioneering sustainable alternatives in both fields. Countries such as Rwanda and Ethiopia are investing in green building materials, with Kigali emerging as a hub for bamboo-based construction materials. The International Bamboo and Rattan Organisation (INBAR) notes that Africa’s bamboo industry, valued at over $20 billion, has the potential to revolutionise construction through renewable materials.

In the textile sector, organic cotton, hemp, and recycled polyester are gaining traction. According to the Ethical Fashion Initiative, Africa’s sustainable textile industry is projected to grow by 13% annually, driven by eco-conscious fashion brands such as Ghana’s Studio 189 and South Africa’s Sealand Gear. These efforts align with the global push for sustainable fashion, a $1.5 trillion industry expected to transition towards 50% renewable materials by 2030.

The Future of Africa’s Renewable Material Economy

As the world pivots towards sustainability, Africa is proving that it is not just a participant but a leader in the search for renewable materials. With its rich natural resources, innovative entrepreneurship, and increasing policy support, the continent is set to play a crucial role in shaping the future of sustainable industries. If leveraged strategically, Africa’s contributions could redefine global supply chains, making sustainability not just an aspiration but a reality.

The post How is Africa Contributing to the Search for Renewable Materials? appeared first on African Leadership Magazine.

Mauritania Leads Africa in Press Freedom

Among African nations, Mauritania has emerged as a frontrunner, ranking 33rd globally with a score of 74.2. This commendable position underscores the country’s efforts to foster an environment conducive to journalistic freedom. Following closely are Namibia, Seychelles, and South Africa, all of which have secured spots within the top 40 globally. These advancements highlight a proactive approach to strengthening press freedoms in these nations.

READ ALSO: Is Press Freedom Under Threat in Africa?

Historically, Mauritania has grappled with issues surrounding freedom of expression. However, recent reforms and a commitment to improving legal frameworks have played a crucial role in this positive trajectory. The country’s progress serves as an encouraging example for other nations in the region striving for similar improvements.

Ghana and Côte d’Ivoire Rank Globally in Press Freedom Index

Ghana and Côte d’Ivoire have also emerged among Africa’s top performers in press freedom, reflecting a growing commitment to media independence. Ghana’s ranking at 50th globally signifies notable progress, particularly in light of ongoing concerns about media harassment and political interference. While challenges remain, the country’s advancement indicates an increasingly open dialogue on press freedom.

Similarly, Côte d’Ivoire, ranked 53rd globally, mirrors this trend, signalling a broader recognition of the media’s role in democracy. Both nations exemplify the reality that, despite persistent hurdles—ranging from safety concerns for journalists to governmental censorship—the foundations for a more vibrant media ecosystem are being steadily reinforced.

A Call for Caution and Continued Reform

Despite the encouraging advancements highlighted by RSF, the organisation continues to urge caution. Challenges such as censorship, arbitrary arrests, and restrictions on information access remain significant barriers in numerous African nations. These obstacles underscore the critical need for ongoing reforms and a stronger commitment from governments to uphold press freedom.

Ensuring that journalists can operate without fear or interference is pivotal not only for media freedom but also for the health of democracy itself. A vibrant press acts as a watchdog, holds governments accountable, and fosters an informed citizenry—all essential components of a thriving democratic society.

The 2024 World Press Freedom Index marks an important step forward for several African countries, reflecting notable progress in the quest for greater press freedom. While the results are encouraging, they also serve as a reminder of the ongoing struggles that many journalists face across the continent. As nations work towards improving their press freedom rankings, a collective commitment to safeguarding the rights of media professionals will be crucial in shaping a more open and democratic future.

The post The State of Press Freedom in Africa This Year appeared first on African Leadership Magazine.

As of the latest data, 48 African countries collectively owe approximately USD 42.2 billion to the IMF. This debt accounts for about one-third of the IMF’s total outstanding credit. Since its inception, the IMF has made more than 1,500 loan commitments globally, with approximately 40% (608) directed towards African nations. On average, each African country has accessed IMF resources 12 times, slightly exceeding the global average of 10.

READ ALSO: IMF Global Growth Outlook 2025: Where Does Africa Stand?

Among the largest African borrowers from the IMF, five countries stand out:

Egypt: $15 billion

Côte d’Ivoire: $4.3 billion

Ghana: $4.3 billion

Kenya: $4.1 billion

Angola: $4.1 billion

Together, these nations account for more than 40% of IMF lending to Africa, highlighting the significant reliance on external financial support across the continent.

Exceptional Cases of Financial Independence

In contrast, Botswana, Libya, and Eritrea have successfully navigated their economic paths without IMF loans, preserving their financial autonomy.

Botswana

Botswana exemplifies how sound economic management can lead to financial independence. Through prudent resource allocation and innovative economic strategies, the country has cultivated a stable economy. With a projected GDP growth of 3.6% this year and a population of approximately 2.72 million, Botswana has prioritised investments in education and healthcare while maintaining sustainable management of its diamond resources. These policies have propelled it towards self-reliance.

Libya

Libya’s financial independence is particularly noteworthy, as it has maintained a zero-debt status with the IMF. Historically, the country’s wealth from natural resources, particularly oil, has allowed it to avoid external borrowing. This strategy has enabled Libya to fund public services and infrastructure projects independently, reflecting a robust economic foundation despite ongoing political instability.

Eritrea

Eritrea has also avoided IMF loans, maintaining financial autonomy through strict economic policies and significant control over foreign investments. The nation has prioritised self-sufficiency by promoting domestic industries and agriculture. While this approach has presented challenges, Eritrea has managed to function without external financial support.

Lessons in Financial Self-Reliance

The experiences of Botswana, Libya, and Eritrea provide valuable lessons for other African nations. Their ability to remain independent from the IMF underscores the potential for self-reliant economic management, which is crucial for long-term sustainable growth. By prioritising resource management, investing in human capital, and diversifying economies, other nations may mitigate the risks associated with external debt and reduce dependency on international financial institutions.

While the IMF plays a crucial role in supporting many African economies, the examples of Botswana, Libya, and Eritrea demonstrate that financial independence is attainable. Their economic trajectories highlight the effectiveness of prudent management and innovative strategies in achieving self-sufficiency. As African countries continue to assess their relationships with the IMF, these three nations offer insights that could shape future policies for sustainable economic stability.

The post The IMF’s Role in Africa: Financial Independence of Botswana, Libya, and Eritrea appeared first on African Leadership Magazine.

Africa’s economic dynamism has made it a pivotal player in the Global South coalition. Recent initiatives, such as South Africa’s presidency of the G20, have positioned the continent as a bridge between emerging markets and established economic powers. The Development Bank of Southern Africa underscores the significance of these efforts, noting that African nations are championing dialogues on sustainable development, climate change, and equitable trade practices.

READ ALSO: Celebrating Dr. Ken Giami: A Visionary Leader Bridging Global South-South Cooperation

Economic Transformation

Africa’s evolution from resource dependency to innovation-led economies symbolises a remarkable paradigm shift. Countries like Kenya, Nigeria, and Senegal have become tech hubs, hosting start-ups that address local challenges with global implications. For instance, Kenya’s M-Pesa platform revolutionised financial inclusion, inspiring digital payment systems worldwide. Meanwhile, Nigeria’s fintech industry has attracted over $600 million in investment annually, according to McKinsey & Company.

Agriculture, long the backbone of African economies, is undergoing a renaissance driven by technology. Smart farming techniques and agri-tech innovations have increased productivity and bolstered food security. Rwanda’s efforts to digitise farming practices have resulted in a 25% increase in crop yields since 2020, illustrating how technology can revolutionise traditional sectors.

Infrastructure remains the lifeblood of Africa’s economic growth. The African Union’s Agenda 2063 underscores ambitious projects like the African Continental Free Trade Area (AfCFTA), aimed at integrating a market of 1.4 billion people. The AfCFTA, expected to increase intra-African trade by 52% by 2025, reflects the continent’s commitment to creating a unified economic bloc.

Flagship infrastructure projects, including Ethiopia’s Grand Renaissance Dam and Senegal’s Dakar-Diamniadio Toll Highway, symbolise Africa’s determination to overcome logistical challenges and harness its natural resources effectively. According to the African Development Bank, investments in infrastructure could add up to 2% to Africa’s annual GDP growth by 2030.

Harnessing the Power of Partnerships

Africa’s collaboration with other Global South nations has amplified its voice in international forums. Partnerships with China, India, and Brazil have driven investments in renewable energy, technology, and manufacturing. China alone has committed over $300 billion in infrastructure projects across Africa, while India’s trade with the continent exceeded $90 billion in 2023.

The growing emphasis on South-South cooperation is reshaping the geopolitical landscape, enabling Africa to negotiate better terms for trade and investment. Initiatives like the India-Africa Forum Summit and the Forum on China-Africa Cooperation have reinforced this dynamic, fostering mutual growth.

Challenges on the Horizon

While Africa’s ascent is noteworthy, challenges persist. Climate change, political instability, and inadequate access to education and healthcare remain formidable barriers. The continent’s youthful population, while a potential asset, also poses a risk if job creation does not keep pace with demographic growth.

Corruption and bureaucratic inefficiencies continue to hinder progress. According to Transparency International, Africa loses an estimated $50 billion annually to illicit financial flows, funds that could otherwise be channelled into development initiatives.

A Vision for 2030 and Beyond

To sustain its momentum, Africa must adopt a multi-faceted approach:

Investing in Education and Skills Development: Empowering its youth with relevant skills can transform Africa’s demographic bulge into a dividend. Initiatives like Rwanda’s coding academies and Nigeria’s tech hubs are steps in the right direction.

Accelerating Green Growth: Africa holds 60% of the world’s solar energy potential. Countries like South Africa and Morocco are already leading the charge with large-scale renewable energy projects. By harnessing this potential, Africa can not only achieve energy security but also lead global efforts in combating climate change.

Strengthening Governance and Transparency: Addressing corruption and fostering institutional reforms are crucial for attracting foreign investment and ensuring equitable distribution of resources.

Africa’s New Dawn

Africa’s journey to becoming the vanguard of the Global South is not just a tale of economic growth but a testament to its resilience, innovation, and ambition. Like the Baobab tree, deeply rooted yet reaching skyward, Africa’s economic renaissance symbolises strength, adaptability, and boundless potential.

As the continent continues to write its growth narrative, it serves as an inspiration for the Global South, proving that sustainable development is not just a goal but an achievable reality. The world is watching as Africa leads the way—not as a follower, but as a trailblazer.

The post Africa’s Economic Growth Leading the Global South appeared first on African Leadership Magazine.

The Importance of the ECOWAS Bank for Investment

The ECOWAS Bank for Investment and Development has played a pivotal role in driving economic growth across the ECOWAS region. By providing access to capital, the Bank enables SMEs to expand, create jobs, enhance productivity, and contribute to inclusive economic progress. This initiative aligns with the Bank’s mandate to promote social advancement and economic growth within the region.

READ ALSO: Abuja Meeting: ECOWAS Advances Trade and Investment Agendas

Challenges Faced by SMEs in Africa

Despite its vast potential, Africa’s SME sector encounters numerous challenges, including limited access to finance, inadequate infrastructure, and skills gaps. These barriers hinder the expansion of SMEs and, by extension, the overall economic growth of the region.

Solutions to SME Challenges

Over the years, the ECOWAS Bank for Investment and Development has introduced several innovative measures to foster the growth of SMEs in the region. Chief among these is providing access to capital, allowing businesses to scale their operations. Additionally, the Bank has prioritised financial inclusion, with a strong emphasis on empowering women and marginalised groups. This comprehensive approach is aimed at addressing various constraints faced by SMEs, from financing to skills development.

To further support SMEs, the Bank offers capacity-building programmes and training, equipping businesses with the expertise required to compete effectively in global markets. Investments in infrastructure development have also been made to improve access to essential services and facilitate business growth. By tackling these critical areas, the ECOWAS Bank for Investment and Development plays a central role in creating an environment conducive to SME success. Through these initiatives, the Bank contributes to regional economic development, promotes entrepreneurship, and generates opportunities for sustainable growth and job creation.

The Future of Investment Banking in Africa

As Africa continues to expand and attract investments, the role of institutions like the ECOWAS Bank for Investment and Development will become even more crucial. The Bank’s commitment to providing innovative financial solutions, capacity-building initiatives, and infrastructure development will be instrumental in driving economic progress across the region.

The ECOWAS Bank for Investment and Development’s dedication to fostering private sector growth and supporting SMEs serves as a beacon of hope for Africa’s economic future. By addressing the challenges faced by SMEs and offering access to capital, infrastructure, and skills development, the Bank is poised to play a significant role in the continent’s economic transformation. As it continues to innovate and expand its reach, it will remain a vital partner in Africa’s journey towards sustainable development and prosperity.

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The Dar es Salaam Energy Declaration marks a significant step in addressing the continent’s electricity deficit, with over 600 million Africans still living without access to power. As a key component of the Mission 300 initiative, the declaration brings together governments, development banks, private-sector partners, and philanthropic organisations to connect 300 million Africans to electricity by 2030. The document is set to be submitted for adoption at the upcoming African Union Summit in February.

READ ALSO: Inside Africa’s Energy Transformation: Tech That’s Changing Everything

The initiative is viewed as a crucial driver for economic growth, job creation, and improved living standards across Africa. By prioritising energy access, Mission 300 lays the foundation for a brighter future, particularly for the continent’s growing youth population.

During the summit, twelve countries—Chad, Côte d’Ivoire, the Democratic Republic of Congo, Liberia, Madagascar, Malawi, Mauritania, Niger, Nigeria, Senegal, Tanzania, and Zambia—presented detailed National Energy Compacts. These frameworks outline targeted strategies to scale up electricity access, boost renewable energy usage, and attract private-sector investments. The compacts, endorsed at the highest level, incorporate time-bound objectives focused on increasing affordable power generation, expanding grid connections, and enhancing regional energy integration. By leveraging satellite and electronic mapping technologies, governments can identify cost-effective solutions to bring electricity to underserved communities.

Speaking at the summit, President Samia Suluhu Hassan of Tanzania emphasised the significance of the event, stating, “Hosting this landmark occasion is a privilege for Tanzania, as we discuss strategies to fulfil our commitment to providing power and clean cooking solutions that will transform lives and economies.”

The successful implementation of these energy strategies requires strong political will, long-term planning, and unwavering support from Mission 300 partners. Governments are working to create an enabling environment through comprehensive reforms, complemented by increased concessional financing and strategic collaborations with philanthropies and development banks to catalyse private-sector investments.

Dr. Akinwumi A. Adesina, President of the African Development Bank Group, underscored the importance of bold reforms to accelerate electrification. He stated, “Expanding renewable energy, improving utility performance, ensuring transparency in licensing and power purchase agreements, and establishing predictable tariff regimes are critical. Our collective aim is to support African leaders in developing and executing clear, country-led energy compacts that align with their national visions for electrification.”

Similarly, World Bank Group President Ajay Banga highlighted the fundamental role of electricity in development, remarking, “Access to electricity is a basic human right. Without it, nations and communities cannot thrive. Our mission to provide electricity to half of the 600 million Africans without power is a crucial first step. Success depends on collaboration; no single entity can achieve this alone. Governments, businesses, philanthropies, and development banks must work together to accomplish our shared goal.”

During the summit, major funding commitments were announced:

• The African Development Bank Group and the World Bank Group plan to allocate $48 billion for Mission 300 by 2030, with flexible adjustments based on implementation needs.
• Agence Française de Développement (AFD) pledged €1 billion to support energy access initiatives in Africa.
• The Asian Infrastructure Investment Bank (AIIB) committed between $1 billion and $1.5 billion to support Mission 300.
• The Islamic Development Bank (IsDB) Group announced $2.65 billion in funding for Mission 300 and broader energy access programmes from 2025 to 2030.
• The OPEC Fund made an initial commitment of $1 billion, with further financing expected.
• The World Bank Group and the African Development Bank Group jointly launched Zafiri, an investment company aimed at supporting private-sector-led energy solutions, such as renewable mini-grids and solar home systems. Zafiri’s anchor partners plan to invest up to $300 million in its first phase, with a long-term goal of mobilising up to $1 billion to bridge Africa’s energy equity gap.

The summit brought together key African leaders, including President Julius Maadaa Bio of Sierra Leone, President Andry Nirina Rajoelina of Madagascar, Libya’s Presidential Council President Mohamed al-Menfi, President Hakainde Hichilema of Zambia, President Hassan Sheikh Mohamud of Somalia, President Brice Clotaire Oligui Nguema of Gabon, and President Joseph Nyuma Boakai of Liberia. These leaders engaged in discussions with global energy experts on the path forward.

The commitments made at the Mission 300 Africa Energy Summit highlight the power of collective action. By combining policy reforms, substantial funding, and dynamic public-private partnerships, African nations are poised to turn ambitious plans into tangible progress, delivering electricity access to millions across the continent.

The Mission 300 Africa Energy Summit was co-hosted by the United Republic of Tanzania, the African Union, the African Development Bank Group (AfDB), and the World Bank Group (WBG), with support from the Rockefeller Foundation, the Energy Sector Management Assistance Program (ESMAP), the Global Energy Alliance for People and Planet (GEAPP), Sustainable Energy for All (SEforALL), and the Sustainable Energy Fund for Africa.

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Africa accounts for more than 70% of global cocoa production, with Côte d’Ivoire and Ghana alone contributing over half. In 2022, cocoa generated nearly $13 billion for these two nations, making it a cornerstone of their agricultural sectors and a lifeline for millions of smallholder farmers. Cocoa is Ghana’s leading agricultural export, while in Côte d’Ivoire, it is the largest revenue earner after oil and gas.

However, cocoa trading is notoriously volatile. Prices fluctuate dramatically, driven by a host of factors, many beyond the control of farmers or national governments. Supply and demand remain key determinants, with weather conditions, crop yields, international stockpiles, and speculative activity in futures markets exerting considerable influence. For instance, a prolonged drought in West Africa in 2016 led to reduced yields and a temporary price surge, providing a brief windfall for farmers. Yet, as supply normalised, prices plummeted, triggering an income crisis for producers.

A critical issue in cocoa trading is the widening gap between the price farmers receive for their beans and their actual cost of living. Even when global prices rise, small-scale farmers—who form the backbone of Africa’s cocoa industry—often find themselves struggling to make ends meet. This persistent poverty is partly due to the low farmgate prices paid to producers.

In 2019, the governments of Côte d’Ivoire and Ghana, in collaboration with industry stakeholders, introduced a “Living Income Differential” (LID) to raise farmgate prices by $400 per tonne, aiming to improve farmers’ earnings. While this initiative was widely welcomed, questions remain about its long-term viability and the willingness of major chocolate companies to absorb increased production costs.

Cocoa production is also intrinsically linked to environmental degradation. Vast swathes of tropical rainforest have been cleared for cocoa cultivation, resulting in deforestation, soil erosion, and biodiversity loss. Over the past several decades, both Côte d’Ivoire and Ghana have experienced severe declines in forest cover, primarily driven by cocoa farming. This has prompted international organisations such as the World Cocoa Foundation and the Rainforest Alliance to advocate for sustainable farming practices, including agroforestry systems that integrate cocoa with other crops to reduce deforestation.

Despite its challenges, the cocoa industry holds significant potential for meeting growing global demand. Collaborations between multinational corporations and increased awareness of environmental and social issues have spurred the involvement of NGOs, governments, and farmer cooperatives in implementing initiatives to improve conditions for cocoa farmers and their communities. Innovation is also creating new opportunities, with some companies developing higher-yielding and disease-resistant cocoa varieties, while others explore blockchain technology to enhance traceability and transparency in the supply chain.

To achieve lasting change in Africa’s cocoa industry, comprehensive reforms are essential. These reforms must address systemic issues such as poor infrastructure, weak regulatory frameworks, and farmers’ limited access to fair markets. A concerted effort from governments, corporations, and civil society is needed to ensure a more equitable and sustainable cocoa sector.

Cocoa trading in Africa remains a high-stakes endeavour. For farmers, the rewards are often modest, and the risks considerable. Yet, despite the persistent challenges, cocoa continues to serve as a critical economic driver and a lifeline for millions. As the chocolate industry evolves, there is hope that the narrative of Africa’s cocoa farmers will shift from one of hardship and exploitation to one of fair wages, sustainable practices, and a brighter future for the generations to come.

The post The Ups and Downs of Cocoa Trading in Africa appeared first on African Leadership Magazine.

With Africa’s agricultural sector projected to grow to a $1 trillion industry by 2030, cross-border collaboration among countries is becoming increasingly important. Professor Eustace Iyayi, former CEO of the Nigerian Institute of Animal Science, defines cross-border collaboration as “partnerships and cooperative efforts between countries to improve agricultural practices, increase productivity, and address shared challenges such as food security, climate change, and trade.” These collaborations allow countries to pool resources, share technological innovations, and work on joint research, ultimately increasing agricultural efficiency and sustainability across the continent.

Cross-border efforts address major challenges facing African agriculture, such as climate change, inadequate infrastructure, and logistical barriers, by enabling countries to share knowledge, resources, and innovative practices. Examples of collaboration include joint research and development projects for improved crop varieties, sustainable farming techniques, and agricultural trade agreements like the African Continental Free Trade Area (AfCFTA), which aims to lower tariffs and smoothen the exchange of goods. Technological sharing also plays a crucial role, with countries exchanging machinery, irrigation systems, and data-driven tools to enhance productivity. Additionally, cross-border training programs provide farmers with skills to boost productivity and efficiency across borders.

Professor Iyayi highlighted successful cross-border initiatives, including Nigeria’s collaborations with neighboring countries. For example, Nigeria and Benin Republic cooperate in maize trade, while Nigeria and Côte d’Ivoire collaborate on cocoa production. These partnerships have improved agricultural trade, bolstered food security, and contributed to economic growth across the region.

However, challenges such as trade barriers, inconsistent quality standards, and complex customs procedures can hinder these collaborations. Professor Iyayi suggests that harmonizing standards through regional organizations like the Economic Community of West African States (ECOWAS), the East African Community (EAC), and the Southern African Development Community (SADC) would simplify trade, reduce tariffs, and improve market access. Furthermore, investing in cross-border infrastructure—such as transport, storage, and processing facilities—could enhance trade efficiency and foster sectoral growth. Training for farmers and traders to navigate differing regulatory environments would also reduce complications arising from policy disparities.

By harnessing diverse resources and regional expertise, African countries can build a resilient agricultural framework that addresses food insecurity and promotes economic development. As these cross-border collaborations deepen, they hold the potential to transform Africa into a global agricultural powerhouse capable of feeding itself and contributing significantly to global food systems. The journey has started, and the possibilities are vast.

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The rapid pace of technological advancements is driving a high demand for individuals well-versed in ICT innovations, capable of thriving in this digital age and becoming true global citizens.

According to the World Bank Group, skills development is central to the ongoing changes in education and labour markets, influenced by global

mega-trends such as automation, climate action, the digitalisation of products and services, and a shrinking labour force. These trends are transforming the nature of work and altering skills requirements. As a result, skills and workforce development systems must proactively adapt to the swift transformations posed by these factors. These shifts will redefine the paradigms of education and workforce development systems worldwide.

Africa is particularly well-positioned to capitalise on these evolving trends, being the continent with the youngest population globally. By investing in skills acquisition for its growing youth population, Africa can position itself as a major player in this field.

According to Coursera’s sixth annual Global Skills Report 2024, there are approximately 3.4 million unfilled jobs globally, highlighting the need for training institutions to equip learners to meet this demand.

Coursera’s CEO, Jeff Maggioncalda, noted that the report’s data on countries’ skilled training rankings was derived from a learning community of over 148 million learners, 7,000 institutional customers, and content from 325 top university and industry partners.

These data indicate a significant demand for jobs requiring specialised skills, presenting a lucrative opportunity for young Africans to secure good livelihoods and advance their careers to the highest levels.

Governments, key stakeholders, and private investors should embrace this opportunity and invest heavily in skills acquisition, particularly in ICT and related digital technologies.

Below are the African nations ranked in the Global Skills Report 2024, which primarily assessed learners’ performance in business, technology, and data science:

1. Cameroon: Global Rank – 74
2. Tunisia: Global Rank – 76
3. Zambia: Global Rank – 88
4. Ethiopia: Global Rank – 92
5. Algeria: Global Rank – 95
6. Zimbabwe: Global Rank – 97
7. Kenya: Global Rank – 98
8. Côte d’Ivoire: Global Rank – 99
9. South Africa: Global Rank – 100
10. Uganda: Global Rank – 102
11. Ghana: Global Rank – 104
12. Nigeria: Global Rank – 105

Africa is well-positioned to take the lead in the Fourth Industrial Revolution through the adoption of cutting-edge technology and the allocation of resources towards education and training. By doing so, the continent can establish itself as a preferred destination for skilled professionals and drive economic growth.

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