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Bank’s Container Port Performance Index (CPPI) ranks these as Africa’s top performers, yet many others struggle with outdated facilities and congestion.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.

The post Africa’s Ports: Gateway to Economic Transformation appeared first on African Leadership Magazine.

The international governance system, as embodied by institutions such as the United Nations (UN), World Bank, and International Monetary Fund (IMF), has not always fulfilled its promises to Africa. Although Africa comprises 54 countries and accounts for nearly 28% of the UN General Assembly, its influence remains marginal in key decision-making processes such as the UN Security Council, where only five countries hold permanent, veto-wielding seats.

READ ALSO: How E-Government is Changing Public Services in Africa

Economic participation in global governance tells a similar story. Africa contributes less than 4% to global GDP yet bears a disproportionate debt burden, with countries such as Ghana and Zambia struggling under external debt often tied to restrictive conditions. This imbalance underscores the need for a governance system that reflects Africa’s realities, opportunities, and challenges.

In the symphony of global governance, Africa’s voice often resembles a whisper struggling to be heard over the crescendos of more dominant players. This imbalance calls for systemic changes, akin to redistributing the musical score so that all sections, including Africa, can harmonise effectively.

Multilateral institutions such as the IMF and World Bank have initiated reforms, but more is needed. According to a 2022 Brookings report, while Africa is home to over 16% of the global population, its voting power in the IMF stands at just 6%. Structural changes to these institutions are crucial to enable African nations to advocate for policies that reflect their development priorities, from infrastructure funding to debt restructuring.

The IMF’s Special Drawing Rights (SDRs), allocated in 2021, provided a glimpse of progress, with $33 billion directed to African nations. Yet, critics argue that these allocations are insufficient, particularly when compared to the $650 billion issued globally. A more equitable SDR redistribution could provide African countries with the fiscal space needed to invest in health, education, and renewable energy.

Debt Sustainability: A Looming Shadow

Africa’s debt crisis epitomises the shortcomings of the global governance system. More than 22 African nations are either in debt distress or at high risk. Innovative mechanisms such as debt-for-climate swaps, which exchange debt relief for investments in green projects, are gaining traction. For instance, Seychelles successfully piloted such a programme, protecting its marine biodiversity while reducing its debt burden.

Climate Change

Africa contributes less than 4% of global greenhouse gas emissions yet bears the brunt of climate change, from desertification in the Sahel to flooding in Mozambique. The global governance system must prioritise climate justice by ensuring developed nations fulfil their $100 billion annual climate finance pledge. Additionally, initiatives such as the African Climate Summit, hosted in Kenya in 2023, highlight the continent’s proactive stance in shaping global climate policy.

Trade and Economic Growth

The African Continental Free Trade Area (AfCFTA) represents a beacon of hope for intra-African trade, which currently stands at a mere 18%, compared to 58% in Asia and 68% in Europe. By reducing tariffs and streamlining trade processes, AfCFTA could boost Africa’s combined GDP by $450 billion by 2035, according to the World Bank. However, global governance systems must support this initiative through fair trade policies and capacity-building programmes.

Technology and Innovation

Africa’s technological landscape is evolving rapidly, with startups across the continent attracting $4.85 billion in funding in 2022—a tenfold increase from 2015. To harness this potential, global governance systems should facilitate technology transfer, capacity building, and infrastructure development. Programmes such as the UN’s “Digital Cooperation Roadmap” are a step in the right direction but require stronger implementation.

Way Forward: A New Global Compact

The path to a fairer global governance system requires more than reforms; it demands a paradigm shift. Africa’s leaders must unite in their advocacy, leveraging regional bodies such as the African Union (AU) to negotiate as a bloc. Meanwhile, developed nations must recognise that a prosperous Africa is not just a moral imperative but an economic and geopolitical necessity.

The global governance system, much like a puzzle, remains incomplete without Africa’s full and equitable participation. By amplifying Africa’s voice and addressing systemic inequities, the international community can turn the current whisper into a resounding melody that benefits all.

The post Making Global Governance Work for Africa appeared first on African Leadership Magazine.

An increase in GDP signifies not just rising economic activity but also an improvement in the overall standard of living for Ghanaians. Higher GDP growth fosters job creation, boosts government revenues, and enhances public services such as education and healthcare. For a nation that has navigated economic turbulence in recent years, sustained GDP growth is critical for attracting foreign investment, stabilising the national currency, and fostering socio-economic development.

READ ALSO: Democracy in Africa on Track: Ghana’s 2024 Election

Economic Benefits for Ghana

As Ghana’s economic growth accelerates, several key benefits are anticipated. Rising GDP attracts both domestic and international investors, creating a climate conducive to economic expansion. Enhanced investment in infrastructure, healthcare, and education can generate employment and drive further growth. A robust GDP enables the government to allocate more funds to socio-economic development projects, improving infrastructure and public services, and ultimately elevating citizens’ quality of life. A growing economy strengthens Ghana’s ability to increase exports, particularly in key sectors such as mining and agriculture. Expanding trade enhances foreign exchange earnings, significantly contributing to national wealth.

Despite the optimistic growth forecast, Ghana faces several hurdles that could impede its economic progress. While the mining sector, particularly gold production, has shown resilience, other sectors, including manufacturing and real estate, remain underdeveloped. Uneven sectoral growth could lead to economic fragility. The agricultural sector has struggled with adverse weather conditions, particularly last year’s dry spell in Northern Ghana, which hindered productivity in this vital industry. Energy sector arrears, fiscal imbalances, and bureaucratic inefficiencies continue to pose challenges. Without addressing these structural issues, sustaining growth momentum may prove difficult.

Solutions for Sustainable Growth?

To navigate these challenges and ensure sustained economic progress, Ghana must adopt a multi-faceted approach. Investing in underdeveloped sectors such as manufacturing, tourism, and technology will reduce reliance on mining and create a more balanced economy. Encouraging innovation and entrepreneurship will also drive job creation and resilience. Investments in agricultural technologies, research, and development will enhance productivity and resilience against climatic shocks. Initiatives such as irrigation systems, improved seed varieties, and farmer training programmes will support higher agricultural output. The government must prioritise resolving energy sector arrears and enhancing fiscal management. Effective governance and streamlined regulatory frameworks will foster business growth and attract foreign investment. Stronger collaboration between the government and private sector can improve infrastructure and service delivery. Leveraging private sector efficiencies will enhance productivity and expand access to critical services.

The Future of Ghana’s Economy

Looking ahead, Ghana’s future appears promising as it builds on its growth momentum. The revival of key mining operations and the anticipated large-scale lithium facility, expected to launch around 2026-2027, could significantly bolster economic output. With proactive measures to tackle existing challenges, Ghana has the potential to achieve its ambitious development goals.

As Qureishi aptly noted, Ghana’s economy demonstrates remarkable resilience, but maintaining growth stability will require a commitment to structural reform. By harnessing its resources effectively, addressing sectoral disparities, and implementing sound policies, Ghana stands poised not just for growth but for a transformation towards sustainable prosperity. The path ahead presents challenges, yet it also offers immense opportunities that, if seized strategically, could redefine Ghana’s economic trajectory for generations to come.

The post Ghana’s Economic Recovery: Can 5.4% Growth in 2025 Be Sustained? appeared first on African Leadership Magazine.

European countries, particularly the United Kingdom and France, also exhibit strong franchise networks, with thousands of successful franchise brands. In Asia, China and India have leveraged franchising to spur small business growth, with China alone experiencing a 15% annual increase in franchise businesses. The franchise model has proven resilient in diverse economies, providing entrepreneurs with a lower-risk entry into business ownership and bolstering local economies through employment opportunities.

READ ALSO: West Africa’s Economy: The Critical Role of Innovation and Entrepreneurship

Africa’s Untapped Franchising Potential

Africa’s franchising sector remains dynamic yet largely untapped. Foreign direct investment (FDI) in Africa is estimated at approximately $60 billion. According to the World Economic Forum, small and medium enterprises (SMEs) account for 95% of all registered businesses and contribute around 50% to the total GDP of Sub-Saharan African countries. SMEs play a critical role in driving economic growth, yet many struggle with sustainability. Data from the International Finance Corporation (IFC) indicates that about 80% of startups fail within the first five years. Franchising offers a structured business model that can mitigate this high failure rate by providing proven systems, established brand recognition, and ongoing operational support.

The South African franchise industry is the most mature on the continent, contributing around 15% to the country’s GDP and encompassing over 800 franchise brands. Nigeria and Kenya are emerging as strong players in the sector, with international brands such as Shoprite, KFC, Domino’s Pizza, and Cold Stone Creamery making significant inroads. Kenya, in particular, has seen a 12% growth in its franchise sector over the past five years, fuelled by a rising middle class and increasing urbanisation. Ghana, Egypt, and Morocco are also witnessing a gradual increase in franchise investments, signalling the potential for broader adoption across the continent.

Key Drivers of Franchise Growth in Africa

A combination of economic and demographic factors is making Africa an attractive frontier for franchising. The continent’s population, currently at 1.4 billion, is projected to reach 2.5 billion by 2050, with over 60% of its inhabitants under the age of 25. This youthful demographic is driving demand for both international and locally adapted brands. Urbanisation is another significant factor, with an estimated 50% of Africans expected to live in urban areas by 2030. This shift is increasing disposable income levels and altering consumer preferences towards standardised, quality-controlled goods and services—an area where franchises excel.

Furthermore, digitalisation is enhancing the feasibility of franchising in Africa. The continent’s mobile penetration rate stands at over 46%, with a projected increase to 50% by 2025. Mobile money services such as M-Pesa in Kenya, MTN Mobile Money in Ghana, and Flutterwave in Nigeria are facilitating seamless financial transactions, making it easier for franchises to operate and expand across borders.

Challenges Hindering Franchise Expansion

Despite its potential, franchising in Africa faces several challenges. Access to financing remains a significant barrier, as many prospective franchisees struggle to secure the necessary capital. The average cost of starting a franchise in Africa varies widely, from $50,000 for smaller brands to over $1 million for well-known international franchises. High interest rates on business loans, averaging between 15-25% in many African countries, further exacerbate the issue.

Regulatory complexities also pose hurdles. Many African nations lack clear franchise-specific legislation, leading to inconsistent enforcement of contracts and intellectual property protections. South Africa is one of the few countries with a dedicated franchise regulatory framework under the Consumer Protection Act, but other nations continue to grapple with legal uncertainties that deter potential investors.

Additionally, supply chain inefficiencies and infrastructure deficits present operational challenges. Poor road networks, unreliable electricity supply, and inefficient logistics can hinder franchise businesses reliant on timely supply chains. However, increasing investments in infrastructure projects, such as the African Continental Free Trade Area (AfCFTA), aim to improve trade flows and connectivity across the region.

The Future of Franchising in Africa

Despite these challenges, the outlook for franchising in Africa remains optimistic. Several international brands are adopting an ‘Africanised’ approach by integrating local preferences into their offerings. McDonald’s, for instance, has adapted its menu in Egypt to include halal-certified products, while KFC in Nigeria sources over 80% of its ingredients locally to navigate import restrictions.

Furthermore, homegrown African franchises are on the rise. South Africa’s Debonairs Pizza, Nigeria’s Chicken Republic, and Kenya’s Java House have successfully expanded within and beyond their home countries, proving that African franchises can scale effectively. The rise of technology-driven franchise models, such as cloud kitchens and e-commerce-based retail franchises, is also shaping the future of African franchising.

As financial institutions and investors increasingly recognise the profitability of franchising, initiatives such as franchise-focused funding schemes by the African Development Bank (AfDB) and the World Bank are emerging to provide necessary capital. Additionally, governments can play a pivotal role by establishing clearer franchise regulations, improving infrastructure, and fostering an environment conducive to business expansion.

Franchising is not merely a business model; it is a vehicle for economic transformation. With strategic investments, regulatory support, and a shift in entrepreneurial mindset, franchising has the potential to redefine African entrepreneurship, create jobs, and stimulate sustainable economic growth.

The post Franchising Could Revolutionise African Entrepreneurship appeared first on African Leadership Magazine.

In 2025, the global fashion market is expected to be worth $1.84 trillion, accounting for 1.63% of the world’s GDP. The industry is projected to expand at a 4.1% compound annual growth rate (CAGR) from 2024 to 2030. Out of the 3.62 billion people in the global workforce, 430 million are employed in fashion and textile production, making it one of the largest employment sectors worldwide. The typical U.S. household spends approximately $162 per month on clothing, contributing to a U.S. apparel industry valued at $365.7 billion in 2025, which is expected to grow at a CAGR of 2.11% from 2025 to 2028.

READ ALSO: Is Africa the New Fashion Capital of the World?

The global women’s apparel market is currently valued at $930 billion and is expected to surpass $1 trillion by 2027, while the men’s apparel market stands at $587.6 billion, and the children’s apparel segment is valued at $274.3 billion. Each year, the global fashion industry produces 100 billion garments, equating to 12.5 pieces of clothing per person worldwide. The average individual owns between 70 and 150 pieces of clothing, with Europeans having the largest wardrobes compared to other regions. Overall, the global apparel market is valued at $1.7 trillion, comprising approximately 2% of the world’s economy.

Despite its undeniable influence, the global fashion industry is also plagued by unsustainable practices. The sector is responsible for 10% of global carbon emissions—more than international flights and maritime shipping combined. The growing demand for sustainable alternatives presents an opportunity for emerging markets like Africa to capitalise on eco-conscious fashion trends.

Africa’s Place in the Global Fashion Economy

African fashion is experiencing an unprecedented boom. According to McKinsey & Company, the African fashion industry was valued at approximately $31 billion in 2020, with projections indicating it could surpass $50 billion by 2030 if investments and infrastructure development align with market demand. With a youthful population—over 60% of Africans are under 25—the appetite for fashion-driven entrepreneurship is expanding rapidly.

Nigeria, South Africa, Ghana, and Kenya are leading markets, contributing significantly to Africa’s fashion industry. Nigeria’s fashion industry alone contributes over $6.1 billion to the GDP, with Lagos Fashion Week attracting global investors and designers. South Africa, home to brands like Maxhosa by Laduma and Thebe Magugu, has witnessed a steady 10% annual growth in its fashion sector, fuelled by international partnerships and local consumption.

Meanwhile, e-commerce is driving African fashion’s expansion. Platforms like Jumia, Afrikrea, and Zando are providing African designers with global reach. In 2022, Afrikrea, a leading African e-commerce platform, reported a 60% increase in international sales, with buyers from the United States, France, and the UK showing significant interest in African-inspired designs.

Sustainability and Innovation: Africa’s Secret Weapon

While the rest of the world grapples with the environmental impact of fast fashion, Africa is pioneering innovative sustainability models. Upcycling, the use of organic materials, and traditional dyeing techniques position African fashion as a leader in the sustainable fashion movement. According to the UN Environment Programme, over 40% of Africa’s textile production involves some form of recycling or upcycling, compared to the global average of 25%.

Designers such as Nkwo Onwuka (Nigeria) and Kofi Ansah (Ghana) are leading the charge in eco-conscious fashion, utilising discarded fabric waste to create luxury garments. The innovative use of waste materials, such as turning plastic waste into fabric in Rwanda, has positioned African designers as torchbearers for sustainable fashion. With the global sustainable fashion market projected to reach $9.81 billion by 2025, Africa’s early adoption of eco-friendly practices could be a key differentiator in achieving the $50 billion target.

Challenges Hindering Growth

Despite its potential, African fashion faces significant hurdles. The lack of robust infrastructure, insufficient access to financing, and inadequate supply chains impede the industry’s scalability. A report by the African Development Bank (AfDB) revealed that 70% of African designers struggle with funding, while 60% cite poor logistics as a barrier to international expansion. Additionally, counterfeit goods and competition from Western fast fashion brands make it difficult for authentic African designs to penetrate global markets at scale.

Another major challenge is the need for industry regulation. Unlike Europe and North America, where fashion councils govern industry standards, Africa lacks a unified regulatory framework. Establishing regional fashion councils with standardised policies on intellectual property rights, trade regulations, and manufacturing standards could provide the stability necessary for sustainable growth.

The Road to a $50 Billion Industry

To achieve a $50 billion valuation, Africa’s fashion industry must embrace strategic investments, technological innovation, and market expansion. Governments must prioritise textile industry policies, much like Ethiopia has done with its Hawassa Industrial Park, which has attracted major global investors such as PVH Corp (owners of Tommy Hilfiger and Calvin Klein). Countries like Rwanda, which banned second-hand clothing imports to boost local production, present a model that could be replicated across the continent.

Moreover, collaborations with international brands could accelerate growth. The success of the 2021 collaboration between Nigerian designer Kenneth Ize and Karl Lagerfeld demonstrated the power of African-Western fashion partnerships. Encouraging more African designers to showcase at global fashion weeks and investing in digital marketing will be crucial in propelling African fashion to mainstream recognition.

A Cultural and Economic Revolution

African fashion is more than an industry; it is a movement. The world is beginning to embrace the continent’s unique blend of heritage and modernity, with celebrities like Beyoncé, Rihanna, and Lupita Nyong’o donning African-inspired designs on global platforms. If Africa can harness its creative ingenuity, resolve infrastructure deficits, and leverage its sustainable practices, the dream of a $50 billion industry is not far-fetched—it is inevitable.

In the grand runway of global fashion, Africa is not just walking; it is strutting towards an economic revolution. The industry is at an inflection point, and with the right investments, policy frameworks, and strategic alliances, Africa’s fashion industry can transcend its current trajectory and become a formidable global force. The question is no longer if Africa will reach the $50 billion mark; it is when.

The post The Global Impact of African Fashion: Can it Become a $50 Billion Industry? appeared first on African Leadership Magazine.

Ethiopian Airlines: A Key Player in Regional Connectivity

With one of the most extensive flight networks across Africa, Ethiopian Airlines plays a crucial role in enhancing regional connectivity, facilitating trade, and boosting tourism. The airline’s investment in expanding airport infrastructure reinforces its position as a key player in Africa’s aviation sector, addressing the continent’s growing need for improved travel options and air freight solutions.

READ ALSO: Ethiopia: The Standard for Renewable Energy Growth in Africa

A memorandum of understanding formalising this partnership was signed by Ethiopian Airlines CEO Mesfin Tasew and AfDB Vice President for Regional Development, Integration, and Strategy, Nnenna Nwabufo, in the presence of AfDB President Dr Akinwumi Adesina. This collaboration marks a strategic effort to elevate Ethiopia’s aviation infrastructure in alignment with the country’s broader economic ambitions.

Financial Backing and Government Support

Ethiopian Finance Minister Ahmed Shide highlighted the critical role of AfDB’s support in this ambitious project, which includes a substantial investment of $1.2 billion. He emphasised that such financing is instrumental in realising Prime Minister Abiy Ahmed’s economic reform agenda, aimed at stimulating growth while enabling Ethiopia to meet the increasing demand for passenger and cargo transportation.

Located in the Oromia region’s Abusera, near Bishoftu, the new airport is set to serve as a vital hub, strengthening connectivity within Ethiopia and across Africa. This strategic positioning is expected to enhance trade, tourism, and economic integration throughout the continent.

Economic Benefits of the Partnership

The partnership between Ethiopian Airlines and AfDB is anticipated to bring significant economic benefits to Ethiopia. The airport expansion will increase passenger capacity from 17 million to 60 million annually, facilitating more efficient travel and trade. This development will be instrumental in boosting tourism and attracting foreign investments. Additionally, the construction and operation of the expanded airport will create numerous job opportunities, both directly and indirectly, in sectors such as aviation, construction, hospitality, and retail.

The project aligns with Ethiopia’s economic reform agenda, with AfDB’s $1.2 billion investment expected to contribute to national GDP growth. Moreover, the new airport will enhance regional integration by enabling the smoother movement of people and goods across borders. The collaboration also paves the way for future initiatives in renewable energy and macroeconomic reforms, positioning Ethiopia as a leader in sustainable development within the aviation sector.

Challenges Ahead

Despite the promising outlook, the airport project faces several challenges. One major hurdle is financial management, as the $7.8 billion project requires rigorous oversight to ensure funds are utilised efficiently and the project remains within budget. Additionally, navigating Ethiopia’s evolving political landscape and regulatory environment could pose difficulties in securing necessary approvals and government support.

Other challenges include the timely development of essential infrastructure, such as roads and utilities, to support the airport’s operations. Furthermore, the project must be executed with sensitivity to local communities in the Oromia region, minimising displacement and ensuring that the economic benefits are equitably distributed. Addressing these challenges will be crucial to the project’s success and long-term sustainability.

Solutions to Overcome Challenges

To mitigate these challenges, several solutions can be implemented. Establishing transparent financial management practices, actively engaging stakeholders—including local communities and regulatory authorities—and forming strategic partnerships with international development organisations can help share financial burdens and leverage expertise. Additionally, incorporating sustainable practices, such as renewable energy solutions, into the airport’s design and operations will not only support global sustainability goals but also increase the project’s acceptance among environmentally conscious stakeholders.

Future Prospects

Looking ahead, the partnership between Ethiopian Airlines and AfDB establishes a strong foundation for Ethiopia’s economic growth. With the right strategies in place, the Bishoftu International Airport Development Project has the potential to become a transformative endeavour, unlocking Ethiopia’s economic potential and setting a benchmark for infrastructure development in Africa.

As AfDB President Dr Akinwumi Adesina remarked, this initiative represents an “African flagship project” that, with continued collaboration, could serve as a model for similar ventures across the continent. With a shared commitment to strategic growth and regional integration, Ethiopian Airlines and AfDB are not only expanding airport infrastructure but also fostering a vision for sustainable economic development. If effectively implemented, this vision could usher in a new era of connectivity, commerce, and growth for Ethiopia and its partners in the region.

The post Ethiopian Airlines and AfDB Forging a Path to Economic Growth appeared first on African Leadership Magazine.

The International Labour Organisation (ILO) estimates that 402 million additional jobs were needed in 2024 to close the employment gap. While some economies have made progress in reducing this deficit, low-income countries, particularly in Africa and South Asia, have seen job shortages increase by 0.4 percentage points compared to pre-pandemic levels. Gender disparities remain stark, with women in lower-income nations facing a 7.5 percentage point higher job gap than men.

READ ALSO: Want to See Africa Lead in Tech? CSR is the Key 

Meanwhile, automation and artificial intelligence (AI) are redefining industries. According to the Future of Jobs Report 2025 by the World Economic Forum (WEF), 83 million jobs are expected to disappear by 2027 due to AI and automation, while 69 million new jobs will emerge—resulting in a net loss of 14 million jobs globally. This transformation is forcing the workforce to adapt, and digital skills, including coding, are at the heart of this shift.

According to the WEF, broadening digital access is expected to be the most transformative trend, with 60% of employers predicting it will reshape their businesses by 2030. Advances in AI and information processing (86%), robotics and automation (58%), and energy generation, storage, and distribution (41%) are also expected to drive change. These trends will have a dual impact, fuelling demand for technology-related skills while rendering some jobs obsolete. Among the most sought-after skills will be AI and big data, networks and cybersecurity, and technological literacy.

Coding as the Ultimate Employment Multiplier

Coding is no longer just for software engineers—it is permeating all sectors, from agriculture and manufacturing to finance and healthcare. According to LinkedIn’s 2024 Jobs on the Rise report, skill sets for jobs have changed by 25% since 2015 and are projected to shift by 65% by 2030. Tech-related roles, such as AI specialists, data analysts, and cybersecurity experts, are among the fastest-growing careers. Even in non-tech industries, coding knowledge improves job prospects and boosts earning potential.

Governments and corporations worldwide are investing in digital education to bridge the skills gap. The European Union (EU) launched the Digital Education Action Plan 2021–2027 to equip citizens with digital competencies, while India’s Skill India initiative has trained over 10 million young people in coding and other digital skills. In the United States, the Bureau of Labour Statistics projects that software development jobs will grow by 25% from 2022 to 2032—much faster than the average for all occupations.

Africa’s Digital Leap: Can Coding Fix Unemployment?

With a youth population expected to reach 1.4 billion by 2050, Africa has the potential to become the world’s digital powerhouse. However, the continent faces an urgent unemployment crisis. According to the World Bank, 60% of Africa’s unemployed are young people, many of whom lack access to quality education and digital skills.

Yet change is happening. Rwanda, often called Africa’s Silicon Valley, has integrated coding into its national curriculum. The country also launched KLab, a tech incubation hub that has produced thousands of software developers and entrepreneurs.

Nigeria, Africa’s largest economy, is witnessing a coding revolution. The government-backed NPower Tech programme has trained over 40,000 young people in software development, cybersecurity, and AI. Private initiatives such as Andela, which has placed African software engineers in global tech companies, are redefining employment opportunities for young Nigerians.

Kenya, a leader in mobile technology, has seen the rise of coding bootcamps such as Moringa School and AkiraChix, which focus on training women in software development. The impact is evident—Kenya’s IT sector now contributes 8% to GDP, up from 1% in 2010.

What Must Be Done

While coding presents a viable solution to unemployment, challenges remain. High internet costs, outdated curricula, and inadequate digital infrastructure hinder progress in many African nations. Governments must invest in broadband expansion, while educational institutions need to adopt industry-relevant coding programmes.

Partnerships between tech companies and schools can accelerate learning. For instance, Google’s Africa Developer Scholarship Programme has trained over 100,000 Africans in coding since 2019. Similarly, Microsoft’s AI for Africa initiative is helping young developers integrate AI into African solutions.

Ultimately, coding is more than just a skill—it is an economic enabler. If African nations harness tech education effectively, they can transform their job markets and build a digitally empowered workforce that competes on a global scale.

Coding is the new literacy, and as the digital revolution unfolds, nations that invest in tech education will thrive. While unemployment remains a challenge, the rise of coding programmes and digital training initiatives offers a beacon of hope. With the right policies, infrastructure, and industry collaboration, tech education can indeed be the key to unlocking employment opportunities—not just in Africa, but across the world.

By embracing this change, the world can turn its looming employment crisis into an era of unprecedented job creation and economic growth.

The post Can Tech Education Solve Unemployment? appeared first on African Leadership Magazine.

According to the World Bank, disputes over land access and control frequently escalate into violence and conflict, leading to dispossession and forced displacement within and across borders. Estimates suggest that 56% of global conflicts are related to land, with the majority occurring in developing countries. By the end of 2015, 95% of the 65 million refugees and internally displaced people worldwide were living in developing regions.

READ ALSO: Africa’s Real Estate Boom: Transforming Urban Landscapes and Global Standing

A Global Perspective on Land Ownership and Development

The debate over land ownership and development is not new. From the Americas to Asia, history reveals numerous instances where indigenous landowners have been displaced in the name of modernisation. In the United States, the principle of eminent domain has been applied since the 19th century to acquire land for public use, often at the expense of Native American tribes. Reports indicate that between 1887 and 1934, over 90 million acres of Native American land were lost under policies such as the Dawes Act.

In India, infrastructure expansion has frequently come at the cost of agrarian communities. According to Land Conflict Watch, over 2.1 million people in India have been affected by disputes linked to development projects, with large-scale displacements resulting from coal mining, highway expansions, and urbanisation. Similarly, in Brazil, industrial farming has driven Amazonian deforestation, impacting indigenous territories that account for nearly 13% of the country’s land.

Meanwhile, China has pursued aggressive urbanisation policies. Since 2000, approximately 50,000 villages have been urbanised, displacing millions in the name of economic expansion. While this has contributed to GDP growth, it has also fuelled social unrest, as seen in the 2011 Wukan protests, where villagers revolted against government land seizures.

Africa at the Crossroads: Ancestral Claims vs. Economic Imperatives

In Africa, land remains a deeply political and economic asset. Over 60% of the continent’s population relies on agriculture, yet increasing portions of land are being allocated to large-scale infrastructure projects, foreign direct investments, and extractive industries. The African Union’s Agenda 2063 recognises land as central to sustainable development but struggles to balance land ownership rights with economic growth.

Approximately 90% of Africa’s land is informally held under customary tenure systems. Countries such as Ghana, Nigeria, and Kenya operate dual land tenure systems, where formal government control coexists with indigenous land ownership. According to the World Bank, over 70% of sub-Saharan Africa’s land remains undocumented, making it vulnerable to disputes and state acquisition. For example, the Tanzanian government faced international backlash when it attempted to repurpose 1,500 square kilometres of Maasai land for wildlife conservation, displacing thousands of indigenous inhabitants.

Foreign Direct Investments and Land Grabs

Africa has seen a surge in foreign direct investment (FDI), particularly in agriculture and mining. Between 2000 and 2020, an estimated 50 million hectares of African land were acquired by foreign entities—a phenomenon often described as “land grabs.” The Democratic Republic of Congo (DRC) alone allocated over 9 million hectares to palm oil and biofuel companies, frequently without clear compensation for local communities. Reports from the Oakland Institute indicate that in Ethiopia, vast tracts of land have been leased to foreign agribusinesses, displacing small-scale farmers in the Gambella region.

Infrastructure Boom vs. Displacement

The drive for mega-infrastructure projects, particularly in East and West Africa, has intensified land-related conflicts. Nigeria’s Lekki Free Trade Zone, a flagship economic initiative, has sparked widespread protests, with local communities claiming inadequate compensation for their lands. Similarly, Kenya’s Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor has led to legal battles between the government and indigenous communities over land rights.

Legal Frameworks: Are They Sufficient?

Efforts to establish legal safeguards for landowners have yielded mixed results. The African Land Policy Initiative under the African Union seeks to promote fair land governance, yet implementation remains inconsistent. Some countries, like Rwanda, have embarked on large-scale land titling projects, registering over 11 million parcels and reducing disputes by 85%. However, nations such as Zimbabwe and South Africa continue to grapple with the legacy of colonial land dispossession, making redistribution efforts politically charged.

The Path Forward

Can Africa strike a balance between development and land rights without compromising either? One potential solution is the introduction of land value capture mechanisms, ensuring that the benefits of development are shared equitably. Another approach is the adoption of community-inclusive development models, such as Ghana’s community benefit agreements in mining areas. However, if left unregulated, aggressive land acquisitions could exacerbate displacement, deepen inequalities, and fuel social unrest. This is evident in countries such as Sudan, where land-related conflicts contribute to ongoing instability.

Africa’s approach to land ownership and development must navigate a precarious path. While economic progress is essential, it cannot come at the complete expense of indigenous rights. The future depends on transparent legal frameworks, equitable land policies, and inclusive development models. If managed correctly, Africa can achieve both growth and stability, ensuring that land remains a source of empowerment rather than a catalyst for conflict.

The post Land Rights vs. Development: Who Owns Africa’s Future? appeared first on African Leadership Magazine.

The World Economic Forum reveals that extreme weather, climate, and water-related events caused almost US$1.5 trillion in economic losses in the decade leading up to 2019, compared to US$184 billion in the 1970s. A World Meteorological Organisation (WMO) report warns that climate change may push over 120 million people into extreme poverty by 2030 if substantial adaptation actions are not implemented (World Bank, 2016).

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As global economic risks intensify, Africa faces a particularly severe challenge. Despite contributing less than 4% of global greenhouse gas emissions, the continent bears the brunt of climate impacts. Vulnerable infrastructure, limited financial resources, and a high dependence on climate-sensitive sectors, such as agriculture, create a perfect storm of economic challenges. The African Development Bank estimates that climate change could erode between 2% and 4% of Africa’s GDP by mid-century if adaptation investments are not scaled up. This imbalance between minimal contribution and maximal vulnerability highlights the urgent need for comprehensive and data-driven adaptation strategies.

Navigating Global Economic Uncertainty

The interplay between climate change and economic stability has led policymakers and economists to reassess long-held assumptions about growth and resilience. Global studies, such as those from the Intergovernmental Panel on Climate Change (IPCC), warn that unmitigated climate change could inflict annual global economic losses equivalent to 2%–4% of GDP by 2100.

These figures are not merely abstract; they represent tangible setbacks, including reduced agricultural yields, increased health expenditures, and deteriorating infrastructure. From an adaptation economics perspective, every dollar invested today in resilient infrastructure and innovative technologies could yield multiple dollars in avoided costs tomorrow. This multiplier effect is particularly critical for developing economies.

Charting a Course through Climate Turbulence

The economic rationale for adaptation is bolstered by data and case studies. In the agricultural sector—central to many African economies—climate change could reduce crop yields by 10%–20% by 2050 without adaptive measures (International Food Policy Research Institute [IFPRI], 2019). Such declines threaten food security, destabilise economies, and drive up food prices, exacerbating poverty. The ripple effects extend into water scarcity, health crises, and job losses, each demanding urgent and robust adaptation strategies.

Rebuilding a Climate-Resilient Economy

The pathway forward requires balancing immediate expenditures with long-term economic gains. The United Nations Environment Programme (UNEP, 2019) estimates that Africa faces an annual adaptation finance gap of US$50–100 billion. This gap reflects not only the need for infrastructure investments but also improvements in governance, capacity building, and technological innovation. International climate finance has increased in recent years, with OECD reports noting a rise from US$16 billion in adaptation flows in 2010 to over US$50 billion by 2018 (OECD, 2019). However, much of this finance has not adequately reached African nations, which continue to struggle with limited access to necessary funds for transformative adaptation policies.

A critical analysis of adaptation economics reveals that effective policies must be dynamic and multifaceted. Adaptation is not a one-size-fits-all solution; investments must be tailored to each region’s specific vulnerabilities and capacities. In Africa, this means bolstering water management systems in arid regions, implementing climate-smart agricultural practices, and modernising urban infrastructure to withstand extreme weather events. Predictive modelling from the IPCC suggests that without adaptation, rising temperatures and erratic weather patterns could lead to economic damages of up to 4% of GDP annually by 2050 for many African nations. Such projections are a clarion call for immediate and sustained investments in resilience.

The Role of Policy and Collaboration

Effective adaptation requires a symphony of collaboration between domestic governments, international financial institutions, and local communities. The UNFCCC has long advocated for developed nations to mobilise US$100 billion annually in climate finance to support mitigation and adaptation efforts in vulnerable regions. However, translating these pledges into on-the-ground projects remains a formidable challenge. African nations must not only secure these funds but also ensure that investments are effectively managed and aligned with local needs. The economic calculus is clear: every dollar spent on adaptation today can safeguard future economic stability, transform vulnerabilities into opportunities, and set a foundation for sustainable development that benefits both the continent and the global community.

The economics of climate change adaptation in Africa encapsulates a narrative of stark contrasts: a continent facing disproportionate risks from a crisis it did little to create, yet also holding the potential for transformative change through strategic investment and resilient policy design. Global data and rigorous analyses affirm that proactive adaptation measures offer high returns on investment—not merely by averting losses but by catalysing sustainable growth. As the world grapples with the multifaceted challenges of climate change, Africa’s journey towards resilience is a critical chapter in the broader story of global economic and environmental renewal. The path forward is illuminated by data, driven by economic imperatives, and must be paved with collaborative efforts to ensure that no nation is left adrift in the turbulent seas of climate uncertainty.

The post The Economics of Climate Change Adaptation in Africa appeared first on African Leadership Magazine.

The stakes are high. Africa’s collective GDP exceeds $3.4 trillion, and AfCFTA aims to create a single market of 1.2 billion people, potentially making it the world’s largest free trade area. If properly implemented, it could boost intra-African trade by over 52% by 2035, creating a powerful economic bloc capable of competing globally. However, the path to integration is complicated by long-standing issues of nationalism, protectionist policies, and economic disparities between member states.

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For decades, Africa has struggled with fragmented markets, making intra-African trade dismally low at just 15% of total trade, compared to 68% in Europe and 58% in Asia. This is largely due to colonial-era economic structures that left African nations trading more with former colonial powers than with their neighbours. AfCFTA seeks to break these barriers by eliminating tariffs on 90% of goods, standardising trade regulations, and fostering a unified industrial base that allows African businesses to scale up.

According to the World Bank, full implementation of AfCFTA could boost regional income by 7% and add $450 billion to Africa’s economy by 2035, lifting 30 million people out of extreme poverty. Manufacturing, which currently accounts for just 10% of Africa’s exports, is expected to expand, reducing the continent’s dependence on raw material exports. The economic logic is clear: regional integration would enhance African industries’ global competitiveness and attract foreign direct investment (FDI) into sectors such as technology, agriculture, and infrastructure.

Nationalism as a Double-Edged Sword

Despite the economic benefits of integration, many African nations remain reluctant to fully commit, citing concerns over national sovereignty and economic control. A major concern is the fear of unfair competition. For instance, Nigeria, Africa’s largest economy, initially hesitated to sign AfCFTA, worried it would flood the country with foreign goods and undermine local industries. Similarly, South Africa, the continent’s second-largest economy, has been cautious about fully opening its labour market, fearing job losses for its citizens.

Another significant issue is revenue loss. Many African governments rely heavily on import duties, which account for up to 30% of government earnings in some countries. Eliminating tariffs under AfCFTA means these nations must find alternative revenue sources, a transition not all governments are prepared for.

Economic nationalism is also fuelled by a history of unfulfilled trade agreements. The Economic Community of West African States (ECOWAS) has struggled with compliance, as member states frequently impose unilateral trade restrictions despite the bloc’s vision of a common market. The Southern African Development Community (SADC) has faced similar challenges, with nations like South Africa prioritising trade with Europe and China over regional trade. These setbacks make many governments hesitant to surrender control to a broader continental agreement.

The Role of Regional Blocs

Africa’s regional economic communities (RECs) have long been seen as the building blocks of continental integration, but their effectiveness has been mixed. The East African Community (EAC) has had some success, reducing trade costs by 30% through improved infrastructure and streamlined customs regulations. In contrast, ECOWAS and SADC have struggled with conflicting policies, leading to inefficiencies and slow progress in trade liberalisation.

One of the biggest hurdles is the overlapping memberships of African countries in multiple regional blocs, creating regulatory confusion. A country like Kenya, for example, belongs to both the EAC and the Common Market for Eastern and Southern Africa (COMESA), which have different trade rules. This fragmentation dilutes the effectiveness of economic agreements and slows down integration efforts.

Can Africa Integrate Without Losing Sovereignty?

A realistic approach to economic integration must acknowledge national interests while finding common ground for regional cooperation. A “flexible integration” model, where countries adopt AfCFTA provisions at their own pace, could help ease the transition. Instead of enforcing blanket policies, member states could prioritise sectors that align with their economic strengths while protecting vulnerable industries.

Strategic industrial policies will also be key. Only 10% of Africa’s exports are manufactured goods, compared to 70% in Europe, highlighting the need for coordinated industrialisation efforts. Rather than competing, African countries should focus on complementing each other’s strengths. For instance, Ethiopia’s strong textile industry could supply raw materials for garment factories in West Africa, creating a regional supply chain.

Reducing trade barriers is another critical step. Africa’s average import cost of $2,492 per container is nearly triple that of East Asia due to bureaucratic customs procedures. Simplifying trade regulations and improving port efficiency would drastically lower costs and make intra-African trade more competitive.

Investment in infrastructure is also crucial. The continent faces an annual infrastructure funding gap of $68 billion to $108 billion, making transportation and logistics expensive. Improved road networks, railways, and energy supply would reduce costs and enhance trade within Africa.

The Future of African Economic Unity

Africa’s economic future depends on its ability to balance regional integration with national sovereignty. While nationalism serves a protective function, excessive economic isolationism could leave African economies vulnerable to external pressures from global economic giants like China, the US, and the EU. AfCFTA offers an opportunity to create a self-sustaining economic ecosystem that reduces reliance on foreign markets.

The journey towards economic unity will be challenging, but Africa must decide whether to continue as a collection of fragmented economies or rise as a formidable economic powerhouse. The potential reward is massive—$4 trillion in consumer and business spending is at stake.

Economic unity is like weaving a grand African tapestry. Each nation contributes its unique thread, ensuring the fabric is strong and vibrant. But if some threads refuse to intertwine, the fabric weakens. The challenge is not whether Africa should integrate, but how to do so while preserving its unique identities. If leaders can strike the right balance, Africa could become a global economic force, shaping its own destiny instead of being shaped by others.

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