The World Economic Forum’s annual summit on the global agenda running in Abu Dhabi until Tuesday brings together more than 900 leading international experts in fields as diverse as nuclear security, climate change, religion and robotics.
Many of the global challenges being discussed at the meeting, dubbed the world’s biggest brainstorm, are already having a direct impact on Africa.
We asked Frannie Léautier, chief executive of Mboka Private Equity Fund, Tanzania, and a member of the World Economic Forum’s Global Agenda Council on Africa, if the Africa Rising narrative was still valid?
Despite challenges in the past year, I believe that Africa Rising still holds true. The region has seven of the world’s 10 fastest growing economies and has a number of strong fundamentals in its favour: sustained macroeconomic policies favouring growth, greater economic diversification, a huge wealth of human capital and increasing political stability.
This maturity has helped to ensure an African voice at the table in key international decision-making.
What is the greatest challenge facing Africa in 2015?
I think there are two; maintaining stability and migration. It’s important that destination countries for migration of refugees are supported, and that economic migration is allowed to continue to support growth without becoming so excessive so as to damage social stability.
What one event/action/decision over the past 12 months has most reaffirmed your belief in Africa’s potential?
The creation of a trade corridor from Cairo to Cape Town this year has been a real turning point in demonstrating a newfound political willingness for further integration. Africa has seen a 60% increase in intra-regional trade between 2010 and 2015, but there are still many bottle-necks preventing the creation of regional supply chains.
What is the most exciting innovation you have seen come out of Africa in the past 12 months?
Key to Africa’s growth are agriculture and mobile communications, so my choice is a business that combines both.
Foreign direct investment to Africa has declined slightly, but private equity is booming, with $4 billion raised in 2014 matched by a further $2 billion in January 2015 alone. The combination of 600 million hectares of “farmable” land in Africa powered by mobile money is an extremely exciting prospect. Innovations that leverage these advantages have potential to scale.
If you could make one thing happen in the next 12 months, what would it be?
I want to see a carbon-neutral industrialisation strategy for the region. Africa’s cities are the only ones in the world that have grown without industrialisation.
Investment is badly needed to drive growth and create jobs for our young population, but not at the expense of the environment.
