Africa must act rapidly to put itself at the core of the next global economic transformation, or be left behind yet again.
That was the stark message from the Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, who called on African governments to invest aggressively in artificial intelligence (AI), renewable energy and critical mineral value chains to insulate their economies from mounting global shocks and unlock long-term prosperity.
Speaking to policymakers, investors and business leaders at the 7th Africa Emerging Markets Forum, Okonjo-Iweala said the continent could no longer depend on exporting raw commodities while other regions reaped the wealth created through technology, manufacturing and innovation, reports Channels TV.
She warned that growth levels are still too weak to deliver the jobs, industries and prosperity demanded by the continent’s fast-growing population, even as African economies slowly recover from years of disruption caused by the COVID-19 pandemic, inflation, supply-chain disruptions and geopolitical conflicts.
“The future belongs to economies that innovate, create value and invest in people,” she said, urging countries to make intentional investments in digital infrastructure, education, research, artificial intelligence and renewable energy.
Okonjo-Iweala also urged African countries to process and add value to the continent’s large quantities of lithium, cobalt, manganese, graphite and rare earth minerals and therefore increase their participation in the global supply chains of vital minerals, instead of exporting them in their raw form.
Africa is endowed with key minerals that present a once-in-a-lifetime chance for it to become a significant player in the global green and digital economy, if countries adopt the proper policies to attract investment and build local companies, the WTO chief said.
She also warned that the rising public debt continues to put economic transformation at risk, and urged governments to exercise fiscal discipline, and to channel limited resources into constructive investments that can fuel sustainable growth.
Her comments come amid a rush among countries around the world to dominate artificial intelligence and secure access to critical minerals needed for electric vehicles, batteries, semiconductors and advanced technologies, all within industries that are expected to determine global economic competitiveness in the coming decades.
Analysts argue that Africa has some of the world’s biggest reserves of these minerals, but captures only a fraction of their economic worth, with most being exported without much local processing.
Mr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), who also spoke at the session, underlined the importance of macroeconomic stability in attracting investment and sustaining prosperity.
He said the apex bank would continue to pursue policies that would ensure price stability, increase investor confidence and defend Nigeria’s financial system in the face of rising global economic uncertainty.
The 7th Africa Emerging Markets Forum, themed “Building Resilience Amidst Geoeconomic Uncertainties,” brought together government officials, central bankers, economists, investors and development partners to discuss how African economies can navigate rising geopolitical tensions, trade fragmentation and financial volatility while accelerating sustainable development.
About the Author
