Africa’s abundance of natural resources, a young and eager population, and economic reforms have made it a global player in trade and commerce.
While Western countries face competition from China and Russia, investment in agriculture, energy, and rare earth minerals in Africa continues to grow.
New players like India and Saudi Arabia are also exerting influence on the continent, alongside China. Foreign investments in Africa reached a record $83 billion in 2021.
Growing appetite for opportunities
Both the West and emerging players seek partnerships with African nations to avoid trade wars, leading to a shift in the approach to investments on the continent.
Growing investment in energy
There is a rising interest in Africa’s energy sector, particularly after global events like Russia’s invasion of Ukraine, with Western countries seeking alternative sources to Russian energy.
A touch of colonialism
Western investments in Africa have faced criticisms for exploitation and perpetuating economic dependence, highlighting the need for more equitable partnerships.
Hedging Africa against the rest of the world
Despite challenges like political stability, infrastructure development, and high-risk perception, Africa remains an attractive investment destination that requires policy changes for more equal partnerships.
Edited by: Sertan Sanderson