Africa Prosperity Network

Category: Africa

  • Building Trust and Unity: Establishing a Pan-African Chamber of Commerce

    Building Trust and Unity: Establishing a Pan-African Chamber of Commerce

    Unlocking AFCFTA’s Full Potential through Intercontinental Collaboration

    As the Africa Prosperity Network (APN) convened for its second annual dialogue in Accra, Ghana, a pivotal topic on the agenda was the establishment of a Pan-African Chamber of Commerce. This initiative, essential for the success of the African Continental Free Trade Area (AfCFTA), aimed to foster trust and collaboration among Africa’s diverse commercial and financial communities.

    The 2024 Africa Prosperity Dialogues addressed a crucial need for Africa’s burgeoning market: creating a credible Pan-African Chamber of Commerce. This development is central to the success of AfCFTA, relying on the continent’s private and commercial sectors to establish mutual trust. Historically, intra-African trade has been hindered by civil strife and a cultural tendency to favour foreign partners over neighbouring African countries.

    Distance and poor transport links across the continent further complicate face-to-face business interactions, essential for building trust. Additionally, the digital communication infrastructure, although improving, falls short of facilitating seamless cross-border commerce. The vast number of enterprises across Africa, many lacking the capacity to engage in formal cross-border trade, presents a logistical challenge in identifying reliable business partners.

    A Pan-African Chamber of Commerce would mitigate these issues by providing a platform to identify, vet, and facilitate business interactions across the continent. The process of establishing this chamber need not be daunting, despite Africa’s often manufactured divisions. National chambers of commerce, present in most African countries, can form the basis of each country’s chapter within the Pan-African Chamber. These chapters, working collaboratively under a Pan-African headquarters, would play a key role in conducting due diligence and facilitating trade among member states.

    Regular webinars coordinated by the headquarters would address vital topics, including the implementation of AfCFTA protocols, identification of cross-border markets, and country-specific trade and investment opportunities. This initiative aligns with ongoing movements towards sub-regional chambers of commerce, exemplified by the Federation of West African Chambers of Commerce and Industry (FEWACCI) and their initiative to establish a West African shipping line.

  • The Power of Production, Value Addition, Trade

    The Power of Production, Value Addition, Trade

    Unlocking Africa’s potential calls for sustainable and innovative approaches in farming, mining, and manufacturing. Investment in Special Economic Zones (key sectors) along production and river basins must be protected from unfair competition.

    This requires aligning governance and leveraging both the AfCFTA framework and the Regional Economic Communities, while considering national agendas.

    Trading is the conduit through which Africa can generate wealth from the world. Given that many countries on the continent are small markets, it is essential to defragment these nations and capitalise on our market of 1.4 billion people. Attracting foreign investment, enhancing the profitability of domestic investment, and increasing product competitiveness necessitate integrating the continent into global markets. This can be facilitated by fair trade agreements and infrastructural developments.

    Leveraging trade partnerships within Africa will showcase its diverse produce and commodities, fostering mutually beneficial relationships that drive economic growth and create employment opportunities. Empowering SMEs and fostering gender balanced entrepreneurship are integral to this journey. SMEs form Africa’s economic backbone: providing them access to capital, technology, and markets can ignite a vibrant entrepreneurial ecosystem.

    The road ahead presents challenges, such as infrastructure deficits, bureaucratic hurdles, and unadopted access to finance. However, strategic partnerships between governments, private sector entities, international organisations, and civil society can mitigate these challenges.

    While good leadership exists on the continent, the next step is to achieve good governance across the board to ensure sustainable development. Political leaders must unite to create consistent policies and regulations that promote competitiveness, regional and continental integration, and protect investments.

    Streamlined import-export processes, ease of cross-country investments, and free movement of people and goods are among the key policies needed to propel Africa towards a prosperous future.

    While good leadership exists on the continent, the next step is to achieve good governance across the board to ensure sustainable development.

    The promise of Africa’s prosperity is not just a dream; it’s a realistic vision waiting to be realised.

    APN is committed to advancing Africa’s vision of Prosperity and “The Africa We Want” as outlined in the African Union’s Agenda 2063. In line with this, the Africa Prosperity Network (APN), in collaboration with the Presidency of the Republic of Ghana and the African Continental Free Trade Area (AfCFTA), is organising its second edition of the Africa Prosperity Dialogue 2024, themed “Delivering Prosperity in Africa: Produce. Add Value. Trade.”

    APD 2024 aims to unite private and public sectors in executing strategic initiatives, critically accelerating intra-Africa trade for robust economic integration and shared prosperity. This pivotal event serves as an essential platform, fostering collaboration

    between Africa’s private sector and public officials to fast-track the tangible realisation of the continent’s single market potential.

    The time is now for a paradigm shift; to walk the talk so we can witness the desired theory of change. Africa possesses the ingredients for prosperity. By fully harnessing its abundant resources, adding value before export, boosting intra-African trade, and fostering regional and continental integration, the continent can chart a course towards sustained economic growth, job creation, and improved livelihoods for its people.

  • Pan-African Value Chains: A New Era of Economic  Empowerment

    Pan-African Value Chains: A New Era of Economic  Empowerment

    Fostering Intra-Continental Trade and Local Value Addition

    As Africa navigates this era of economic liberalisation, our focus shifts towards enhancing local value addition and developing robust pan-continental value chains. This transformative approach aims to reshape Africa’s trade deficits, unlocking vast economic potential across the continent, as the expansion of local productive capacity creates vast opportunities for creating jobs and prosperity across the continent.

    Since the 1980s and 1990s, African countries have embarked on economic liberalisation guided by Western institutions. However, these reforms have largely overlooked a crucial aspect: local value addition. It is only recently that African nations have recognised the need to focus on this area, crucial for their economic progression.

    Historically, African economic policies have centred on trade liberalisation, diversification of exports, deregulation of foreign exchange markets, and attracting foreign direct investment. Despite these efforts, trade volumes have escalated, but so have imports, outpacing exports and widening trade deficits. This trend contradicts the neoclassical economic doctrine, which posits that currency depreciation should enhance export competitiveness.

    In 2021, 37 out of 50 African countries recorded merchandise trade deficits. The continent’s US$35.27 billion trade deficit would have been more pronounced if not for surpluses from countries like Angola, the Democratic Republic of Congo, Libya, and South Africa. Notably, Algeria, Angola, Egypt, Nigeria, and South Africa account for nearly 60% of Africa’s total international trade, indicating a skewed trade structure.

    This imbalance highlights the failure of classical economic solutions and underscores the need for local value addition. The focus is now shifting towards creating intra-African trade and supply chains. This approach aims to retain more economic benefits within the continent.

    Ghana’s mid-1990s fiscal regime, influenced by the World Bank and the IMF, exemplifies the shortcomings of past policies. Tax incentives favoured companies importing production inputs for export-oriented manufacturing, inadvertently discouraging local value addition. This policy trend has been replicated across many African countries, leading to huge import dependencies.

    Interestingly, about two-thirds of Africa’s imports are production inputs, not finished consumer goods. Therefore, increasing local value addition in manufacturing could significantly impact trade balances. In 2021, sub-Saharan Africa’s raw material, intermediate production inputs, and capital goods imports far exceeded its consumer goods imports.

    Focusing on low-technology but inclusive manufacturing, particularly agro-processing, presents a viable solution. Many African countries have institutions capable of supporting cottage industries in this sector. Fiscal incentives and government commitment are crucial in leveraging this potential.

    A prime example is the brewery industry in Nigeria and Ghana, which has replaced imported barley hops with locally cultivated sorghum, maize, and rice. Such initiatives have reduced import bills and provided sustainable livelihoods for thousands of farmers.

    The African Continental Free Trade Area Agreement (AfCFTA) now offers a platform to extend these practices across the continent, creating supply and value chains that integrate various African countries based on competitive advantages. For instance, Unilever’s sourcing strategy across Africa illustrates the efficiency of such chains.

    Intra-African trade, currently a fraction of Africa’s total trade, holds immense growth potential. Increasing local value addition will retain more economic benefits within Africa, creating jobs and conserving foreign exchange. The use of the Pan African Payments System (PAPS) as a payment platform will minimise forex exposures, vital in the current economic climate.

    Engaging Africa’s public and private sectors in this new economic paradigm is key to transforming the continent’s economic landscape. This shift towards local value addition and continental trade collaboration is poised to redefine Africa’s role in the global economy.

  • Global Africa: Harnessing Global Africa’s power for Continental Development

    Global Africa: Harnessing Global Africa’s power for Continental Development

    In the wake of recent global challenges, including the COVID-19 pandemic and the Russia/Ukraine war, Africa finds itself at a crucial juncture. These events, compounded by the long-standing impacts of colonialism and climate change, underscore the urgency of rethinking the continent’s development strategies. Central to this re-evaluation is the recognition of ‘Global Africa’ – people of African descent living outside the continent, whose inclusion in Africa’s development agenda is now more crucial than ever.

    The African Union’s adoption of the term ‘Global Africa’ marks a shift from the traditional ‘African Diaspora.’ It envisions a broader identity for Africans, acknowledging their common historical experiences of slavery, colonialism, and racial oppression. This shared history provides a foundation for uniting towards collective prosperity.

    The economic influence of Global Africa is significant. In the United States, the African-American community, around 40 million people, contributed approximately $1.52 trillion USD to the U.S. economy in 2021. That same year, Africa received just $49 billion in remittances. In 2021, 11 million African-born migrants lived in European Countries, nearly five million resided in Asia, whilst about 3 million lived in North America. In 2020, more than 19.5 million Global Africans, born in Africa, lived outside Africa in different world regions. The Global African population holds significant economic and cultural power. However, this economic power remains largely untapped in terms of driving Africa’s development.

    The prevailing challenge for Global Africa is the ‘new scramble’ for its resources, a contemporary echo of historic exploitation that dates back hundreds of years before 1884, when arbitrary lines were drawn between our communities to facilitate the extraction of our treasures. Whilst old colonial era agreements continue to dictate our economic fortunes, major questions about the continent’s ability to harness its resources for the benefit of its people remain unanswered. “Prosperity in Africa requires us to dismantle this system that compels black people to succeed at the expense of one another”, says Glenn Singleton, an American-born Ghanaian and CEO of Door of Return. Singleton has been organising heritage tours to Ghana for African-Americans since 2019 through his Homecoming initiative.

    “| mean, look at African economies”, Singleton continues, “we are still predominantly driven by the export of primary commodities and natural resources, perpetuating the colonial-era development model. In this paradigm, Africa, rich in resources, essentially remains a supplier to more advanced economies, a pattern that disturbingly extended to the forced extraction of human resources during the enslavement of Africans. Moreover, this model glaringly omits representation from people like me at industry forefronts, effectively undermining our identity and experiences.”

    Emulating China’s rise from adversity, Africa must look both within and beyond its borders, integrating its strengths and building up the self-perception of its global population. Africa’s manufacturing and export sector lags dangerously behind, with the continent’s total contribution to world trade at just under 3%. African governments and private entities must rethink their approach to development.

    For Charles Kollo, an African-French-American entrepreneur and CEO at Crowned Kings, a Strategic consulting firm that has been supporting brands to scale in emerging markets, “addressing the needs of Global Africa requires a cultural transformation towards a unified ‘One Africa! with shared, distributed value chains of production and culture. This necessitates fostering educational heritage travel to enhance tourism and skills development, acknowledging the rich and diverse cultural heritage that emerged from forced migration.”

    Harnessing the power of Global Africa isn’t without its challenges. The current trend of brain drain, with skilled professionals leaving Africa for better opportunities, complicates this goal. A balancing option may be to propose new opportunities that incentivise successful Global Africans, willing to return. Just as Western corporations colonise the minds of our most talented young workers, offering them remote work and opportunity through service to non-African corporate interests, we must create conducive environments for Global African returnees and investors to replenish human capacity lost to regions outside Africa.

    Addressing these challenges demands coordinated action and enhanced physical and _ political infrastructure. Strategies must be developed to facilitate the return of Global Africans. The APN Club, in partnership with African and Global African Chambers of Commerce, offers potential solutions. These include visa waivers, expedited nationality, naturalisation, and investment incentives, along with opportunities for student exchange across Global Africa for all Africans.

    “Forty years from now,” referring to the African Union’s 2063 agenda and master plan for transforming Africa into the global powerhouse of the future, Kollo predicts nothing will have changed if fundamental issues like good roads, quality healthcare, working systems and rule of law are not addressed, “we can call on Global Africa to return home to the continent or invest in it all we want but if African governments do not put in place the basics, no one will be willing to give up the comfort they enjoy.”

    The active participation of Global Africa, alongside decisive actions from African governments, is vital in overcoming these challenges and unlocking the continent’s full potential

  • Global Africa Forum 2025 Charts Bold Path for an ‘Africa Beyond Aid’ Amid Global Tariff Wars

    Global Africa Forum 2025 Charts Bold Path for an ‘Africa Beyond Aid’ Amid Global Tariff Wars

    FOR IMMEDIATE RELEASE

    New York, 29 September 2025 – The Global Africa Forum 2025 (GAF), convened on the sidelines of the United Nations General Assembly, issued a powerful call for Africa to decisively seize control of its economic destiny. In response to global tariff wars, shifting geopolitics, and donor fatigue, leaders united around a vision of a self-reliant, integrated, and prosperous continent.

    Organised by the Africa Prosperity Network (APN) in partnership with the Africa America Institute, the African Continental Free Trade Area (AfCFTA) Secretariat, KRL International, and the Rebranding Africa Forum, the event gathered African and Global African leaders, alongside global investors, innovators, and policymakers. The forum was held under the theme: “Africa’s Response to Tariff Wars: Building a Prosperous, Integrated Continent Beyond Aid.”

    A Unified Continent as a Global Growth Frontier

    Positioned as an active platform for mobilising Africans and Global Africans to shape their future in practical terms, GAF 2025 emphasised that Africa’s strength lies in its unity and its capacity to mobilise its vast domestic and diaspora resources. Leveraging the African Continental Free Trade Area (AfCFTA) as a catalyst for economic growth, repositioning Africa and Global Africa or Africa’s Diaspora (designated by the African Union as Africa’s sixth region) as a unified market and a primary architect of its own prosperity defeats the narrative of an aid-dependent region. With a population of 1.5 billion, AfCFTA is the world’s largest single market project. Global Africa counts well over 200 million people.

    “At its core, GAF recognises that Africa’s accelerated path to prosperity lies in economic integration,” stated Nana Adjoa Hackman, Executive Director of APN. She said the platform is designed to “deliberately connect resourceful Global Africans, entrepreneurs, professionals, investors, innovators, and institutions in the Americas, the Caribbean, Europe, Asia, and elsewhere, to Africa’s integration and transformation agenda.”

    This sentiment was also echoed by Mohamed M. Abou El Enein, Chairman and Founder of Cleopatra Group. “Africa is in my blood, Africa is in my brain, and I’m really proud of what’s happening now in the international market about the big awareness from all the most developed [economies] about Africa. It’s very important for investors to see that this continent is connected together.”

    Mobilising Capital and Closing the Infrastructure Gap

    A key financing innovation that was unveiled at GAF 2025 was the ‘Dollar-a-Day Initiative’, proposed by Her Excellency Nkosazana Dlamini Zuma, APN Advisory Council Chairperson, during the 2025 Africa Prosperity Dialogues (APD). The initiative aims to mobilise small, consistent contributions from Africans and Global Africans into a dedicated continental infrastructure fund, directly addressing Africa’s $100 billion annual infrastructure deficit through collective action.

    GAF also scrutinised the strategic use of existing financial flows. Amine Iddriss Adoum, Director of Infrastructure, Industrialisation, Trade & Economy at AUDA-NEPAD, said: “We all keep saying that there are about $90 billion of remittances that come into Africa every year. But the interesting part of this number is that about 80% to 90% of the remittances don’t go towards productive investments.”

    Trade, Partnerships, and Implementing the AfCFTA

    High-level sessions interrogated Africa’s place in the global economy, calling for unified negotiation strategies, stronger regional value chains, and accelerated implementation of the AfCFTA. Discussions highlighted the urgent need for more balanced, trade-driven partnerships, particularly between the United States and Africa.

    Congresswoman Sheila Cherfilus-McCormick, United States Representative and Chairwoman for the Global Energy Conference, emphasised the need for a transformative engagement: “AGOA [Africa Growth and Opportunities Act] was a mutually beneficial trade policy that needed to be extended. So many people who looked at it said, ‘well Africa is the future’. We keep telling them that no, Africa is today, and it is now. We’re looking at finding different ways to participate more in Africa, specifically when it’s not just extraction, but we’re looking at processing, we’re looking at jobs, we’re looking at maximising the growth of Africa.” AGOA grants eligible African countries tariff-free entry into the United States for over 1,800 products. 

    Addressing Structural Barriers

    While the vision was clear, participants acknowledged the practical challenges to realising a single African market. Dr Amany Asfour, President of the Africa Business Council, highlighted key obstacles: “If we talk about AfCFTA, it’s just an agreement. But to implement this agreement, we need a multifaceted approach. We need to have harmonisation of all the regulations and policies across the continent. You cannot just trade [with one set of regulations in] one country and another [set of] regulations or certificates in another country.”

    Vymala Thuron, Director of Funds and Resource Mobilisation at Shelter Afrique Development Bank, pointed to financial infrastructure challenges: “At ShafDB, what we see is [real estate] as really an anchor to unlock trade, manufacturing, and energy. However, cross-border trade has high transaction costs and banking costs. There is volatility. We need to reduce the cost of capital, and we need to have other ways of de-risking investment.”

    Governance and the Diaspora as Key Drivers

    Joyce Bawah Mogtari, Special Aide to the President of Ghana, underscored the importance of governance: “If we want to make progress, we need a fair justice system and we need equity. Ghana is open for business. But yes, [while] we are open for business […] we want the right kind of business.”

    The Forum was notably encouraged by the significant number of registered attendees from the African diaspora, including African Americans and Afro-Caribbeans, who answered the call to reconnect with the continent. The event urged a decisive shift from charity and remittances towards strategic investment, innovation, and policy influence, positioning Global Africans as central drivers of connectivity, trade, and industrialisation.

    Looking Ahead: Africa Prosperity Dialogues 2026

    The event culminated with the launch of the Africa Prosperity Dialogues (APD) 2026, announced by a coalition of leaders including Nana Adjoa Hackman of APN, Joyce Bawa Mogtari, Special Aide to the President of Ghana, Dr Amany Asfour of the Africa Business Council, and Nkiru Balonwu, APN Board Member and Founder of Africa Soft Power.

    The dialogues will take place from 4–6 February 2026 at the Accra International Conference Centre, Ghana, under the theme: “Empowering SMEs, Women & Youth in Africa’s Single Market: Innovate. Collaborate. Trade.”

    The outcomes of the Global Africa Forum will feed directly into APD 2026, where the ideas and proposals raised will be refined into concrete policies, investment commitments, and measurable outcomes for the continent.

    For More Enquiries, contact

    Africa Prosperity Network, Communication Directorate Tel: +233 20 136 6105

    Email:comms@africaprosperity.network

    Web: www.africaprosperitynetwork.com

    About the Global Africa Forum:

    The Global Africa Forum, organised by the Africa Prosperity Network and the Africa America Institute, serves as a dynamic platform to connect the skills, technology, and financial resources of Global Africans with critical sectors such as energy, health, education, housing, transportation, and digital infrastructure. This partnership aims to unlock the potential of Africa’s single market, home to 1.4 billion people, by attracting global investments and facilitating innovative collaborations.

    Africa Prosperity Network (APN) is an Accra-based nonprofit organisation dedicated to advancing Africa’s single market and Agenda 2063 through high-impact platforms, including the Africa Prosperity Dialogues. The network connects public and private sectors to accelerate continental integration and sustainable development across Africa.

    Distributed to all African and international media houses

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  • Transforming Africa’s Economy: Charting the Course for Seamless Communication and Financial Transactions Across Borders

    Transforming Africa’s Economy: Charting the Course for Seamless Communication and Financial Transactions Across Borders

       BY SENYI FATHI AND KWEKU ADOBOLI

    As Africa navigates its digital revolution, the imperatives of interoperability in mobile networks with roaming services, on the one hand, and payment systems, on the other, are coming to the fore. These twin pillars have the potential to reshape the continent’s economic landscape, breaking down barriers in communication and financial transactions, if done at a Pan African scale. It is a crucial low-hanging fruit for the success of the African Continental Free Trade Area (AfCFTA).

    In the pursuit of free movement of people, goods, and capital, a key aspect often overlooked but equally vital is the seamless integration of communication and payment systems. The ability to effortlessly place calls and execute payments on the go underpins the essence of free trade and movement, fostering an environment conducive to economic growth and regional integration.

    Mobile Telephony Roaming:

    The First Pillar of Interoperability

    The concept of mobile telephony roaming, as the first pillar of interoperability, has evolved significantly. The European model, where roaming charges are virtually non-existent, stands in stark contrast to the situation in many African countries.

    Exorbitant rates for calls and data often impede communication and, by extension, business efficiency. However, recent years have seen some progress.

    A bilateral free international roaming agreement, due to be implemented on March 1st 2024, will cap data roaming charges between Togo and Ghana at FCFA 1.6 per MB. Currently, roaming charges can reach up to FCFA 8,400 per MB.

    Although in 2019, the African Telecommunications Union reported a notable reduction in roaming charges within several African regional blocks, Africans still spend more than their global counterparts, thus creating business growth bottlenecks.

    Payment Systems:

    The Second Pillar of Interoperability

    Payment systems interoperability is vital. The vision is for seamless financial transactions across African borders, mirroring the ease of mobile communication in Europe. Currently, cross-border payments in Africa are often hindered by high costs and inefficiencies. According to the World Bank, the average cost of sending $200 across borders in Sub-Saharan Africa was about 8.2% in 2020, higher than the global average of 6.8%. JP

    Morgan says global banks can save $120bIn a year in transaction costs, not including FX costs using multi-currency Central Bank Digital Coins (mCBDCs). Whilst Afrexim Bank calculates Africa spends S5billion a year in FX Transaction fees to correspondent banks in London, New York and Amsterdam. The opportunity for African finance institutions to collaborate to reduce these costs, whilst greatly increasing their profitability and influence, must be promoted.

    The Data Challenge

    The data cost challenge is profound. A 2021 study by the Alliance for Affordable Internet revealed that the average cost of 1GB of mobile data in Africa is 7.12% of the average monthly income, compared to just 2.22% in the Americas. These costs not only impede communication but also affect the growth of the digital economy.

    Bridging the Divide

    Travel has evolved from the days of carrying multiple currencies or relying on expensive dollars. Credit cards have simplified transactions, but high transaction fees remain a barrier. Similarly, inconsistent mobile connectivity across countries adds to the complexity, with roaming charges (especially data) often being prohibitively expensive.

    Europe’s approach to abolishing SMS charges two decades ago to foster communication and business mobility is a model worth emulating. It demonstrates the transformative impact of reducing communication barriers on regional economic activity.

    The Path Forward

    The path to achieving interoperability in Africa involves a multi-faceted approach. Governments, regulatory bodies, and industry players need to collaborate to create conducive environments for interoperability in both mobile telephony and payment systems.

    For mobile networks, this means harmonising policies and regulations to reduce roaming charges and improve connectivity across borders. Initiatives like the Smart Africa Alliance, which aims to create a single digital market in Africa by 2030, are steps in the right direction. These efforts must be accelerated and expanded to cover more countries and regions within the continent.

    In terms of payment systems, the focus should be on creating a unified payment infrastructure that allows for easy and cost-effective cross-border transactions. The recent launch of the Pan-African Payment and Settlement System (PAPSS) by the African Export-Import Bank is a landmark development in this regard. PAPSS is designed to enable instant cross-border payments in local currencies, significantly reducing transaction costs and time.

    Moreover, the private sector has a crucial role to play. Companies like M-Pesa in East Africa, MTN MoMo in West Africa, Orange Money in Francophone Africa among others continue to revolutionise mobile money services, demonstrating the potential of innovative financial technologies in enhancing financial inclusion and facilitating transactions. Expanding such services across the continent and ensuring their interoperability with other systems is essential.

    Project mBridge

    Experimenting with a Multi-CBDC Platform for cross-border payments

    The mBridge project, under the Bank for International Settlements (BIS), is a pioneering platform uniting Central Bank Digital Currencies (CBDCs) across four nations for instant, cost-effective cross-border settlements. Developed in partnership with the BIS Innovation Hub, Hong Kong Monetary Authority, Bank of Thailand, People’s Bank of China, and Central Bank of the UAE, mBridge enables real-time payment vs payment (PvP) transactions in diverse financial activities such as insurance, corporate bonds, wealth management, and e-commerce.

    This innovation enhances liquidity, increases credit availability, and fosters financial innovation, thereby strengthening the resilience and dynamism of economies globally. According to the BIS, systems like mBridge have become necessary “because the [correspondent banking] payment systems underpinning cross-border financial flows have not kept up with rapid growth in global economic integration.” In 2020, for nearly $23.5 trillion in cross-border transaction flows, transaction charges amounted to 0.5%, or $120 billion.

    –

    Afrexim Bank’s Pan African Payment and Settlement System (PAPSS) demonstrates that Africa has been ahead of the curve in attempting to reduce the transaction costs of cross-border transactions. Trade between African countries accounts for only 13% of all African trade, and yet Africans currently lose more than $5billion a whopping 7% of our 2020 intra-Africa trade volume – a year in foreign currency transactions to Western correspondent banking systems, on intra-African trade because we cannot trade directly between each other without round tripping to New York, London, or Paris for US Dollars or Euros. The functionality and capacity of PAPSS must continue to expand, increasing interoperability and de-dollarising our economies.

    Challenges and Opportunities

    The journey towards full interoperability in Africa faces several challenges, including diverse regulatory environments, varying levels of technological advancement, and concerns about data security and privacy. Overcoming these challenges requires sustained commitment from all stakeholders, including governments, regulatory authorities, telecom operators, financial institutions, and technology providers.

    However, the opportunities presented by interoperability are immense. For businesses, it means reduced operational costs, increased efficiency, and access to broader markets, notwithstanding non-trade barriers. For consumers, it translates to more accessible services and products, enhanced convenience, and improved economic participation. This would be the first step to achieving true free movement of people, whether or not our colonial borders remain.

    Strategic Imperative

    The dual focus on interoperability in mobile telephony and payment systems is not just a technical necessity but a strategic imperative for Africa’s economic growth. It holds the key to unlocking the continent’s digital potential, fostering regional integration, and realising the vision of AfCFTA. As Africa embraces its digital future, the importance of seamless communication and financial transactions across borders becomes paramount. A holistic approach to interoperability lays the foundation for a more connected, prosperous, and competitive continent.

    By reducing the barriers in communication and financial transactions, Africa can significantly enhance its attractiveness as a business destination, encourage entrepreneurship, and drive socio-economic development. After leapfrogging the telephone divide into the digital space, Africa has recorded the most accelerated mobile phone penetration in the world. This should speak to the potential of our economies with harmonised interoperability, where African prosperity begins.

    The Origins of Mobile Money: Driven by Necessity and African Ingenuity

    Reflecting on my boarding school days in a remote part of Benue state, Nigeria, I recall the challenge of being far from home, especially during sparse visiting days. As high schoolers without bank accounts, receiving money from our parents was a hurdle.

    We devised a workaround. Our parents would purchase and send us recharge card codes worth N1000 or N500. We would then journey into town, trading these codes with phone booth operators for cash, albeit at a slightly reduced value.

    This simple yet effective method bridged the gap, connecting us with much-needed funds from home.

    Francis Y. Brown runs an animation studio (AnimaxFYB Studios) from Ghana, with talent from Nigeria and Kenya, financing from South Africa and script writers from North Africa. Brown pays his workers, who mostly work remotely, and who sometimes have to travel to meet scriptwriters, without necessarily travelling from the studio in Ghana.

    Discussing the bottlenecks he faces, Brown says: “There are three things to consider: roaming charges for calls, roaming charges for data, and payments to those I work with from across the continent. Compared to a European production studio, most of my profits for such a Pan-African project are spent on these three elements. This makes me very uncompetitive compared to my American and European counterparts, not least because of talent.”

    Francis Y. Brown’s plight in managing a Pan-African animation studio underscores the challenges faced by continental businesses. The excessive costs of roaming, both for calls and data, coupled with the complexities of making cross-border payments, significantly dent the competitiveness of African enterprises compared to their European counterparts.

    Business Impact:

    • High roaming charges for calls and data across Ghana, Nigeria, Kenya, and South Africa inflate operational costs.
    • Inefficient cross-border payment systems increase expenses and complexities in transactions with remote workers and collaborators.
    • The studio’s competitiveness is undermined globally due to these systemic digital and financial barriers, despite having equivalent talent and creative capabilities.

  • Transforming Africa’s Economy through Local Petroleum Refining

    Transforming Africa’s Economy through Local Petroleum Refining

    The completion of the Dangote Refinery in Nigeria marks a significant milestone in Africa’s economic transformation. Spearheaded by Aliko Dangote, Africa’s richest and one of its most astute investors, this refinery, with a capacity for 650,000 barrels of crude oil per day, is not only the largest in Africa but also a testament to the continent’s ability to achieve self-sufficiency in refined petroleum products using private capital. This development is a focal point for the Africa Prosperity Dialogues, during which we will examine the investment model behind this achievement, particularly as Africa navigates the transition from fossil fuels to greener energy sources.

    Despite contributing the world’s smallest share of greenhouse gas emissions at just 3.8%, Africa faces practical challenges in adopting green energy. The focus remains on shifting from liquid fossil fuels to cleaner gas, a process that will be gradual due to investment limitations. Refining remains essential, given Africa’s reliance on imported refined products despite being a significant crude oil producer.

    In 2022, Africa produced an average of 7.1 million barrels of crude oil per day but refined only 3.38 million. This gap, exacerbated by countries like Ghana exporting all their production and importing refined products, results in a financial imbalance, with Africa spending more on petroleum products than it earns from crude oil sales. The continent’s refining capacity, heavily concentrated in Egypt, Algeria, and Libya, contrasts with the import dependency of most African countries, including Nigeria, which imports over 80% of its refined petroleum products. Remarkably, Ghana exports 100% of its produced crude oil, yet imports 100% of its crude inputs for local refineries. It is beyond apposite for Africa to abandon such colonial era agreements. One idea is to adapt these agreements so that where we create local demand for raw commodity sector outputs, all producers can be compelled to redirect at least a portion of their exports back into local production, at cost.

    The Dangote Refinery, expected to meet Nigeria’s entire refined petroleum needs and generate surplus for export, represents a shift towards local refining. This shift promises substantial economic benefits, including significant savings on import bills and foreign exchange. The Central Bank of Nigeria estimates that Dangote Refinery alone could save between US$25 billion and US$30 billion annually in foreign exchange.

    Furthermore, the Pan African Payments and Settlements System (PAPSS) will enable African countries to pay for refined petroleum products in local currencies, alleviating additional forex pressures. This system, coupled with the potential for countries to establish their own refineries and import crude from African producers, offers a sustainable economic model.

    Dangote demonstrates that private investment in refineries is viable in Africa, creating job opportunities and entrepreneurship prospects. During construction, it employed 40,000 workers, with an expectation to create over 250,000 direct and indirect jobs in full operation. Such initiatives are crucial for reducing Africa’s high unemployment rates.

    As Africa aims for industrialisation and intra-continental trade, the African Prosperity Dialogues present an opportunity to encourage leaders, entrepreneurs, investors, and technocrats to focus on developing refineries that can power industries and drive economic prosperity across the continent.

  • Unleashing Africa’s Demographic Dividend: Youth Challenges and Opportunities in Agenda 2063

    Unleashing Africa’s Demographic Dividend: Youth Challenges and Opportunities in Agenda 2063

    The world’s ten youngest countries by median age are all African. Today’s newborns will be navigating their forties by 2063 and inherit the African Union’s Agenda 2063. A staggering 60% of Africa’s population is under the age of 25. The continent’s youth play a central role in all our narratives.

    However, the youth face formidable challenges. Unemployment rates soar as high as 40% in some countries, signalling an urgent crisis. Equally concerning is the education gap, with UNESCO noting that over 30 million primary-school-aged children in sub-Saharan Africa are out of school, impeding crucial skills development.

    Presently, youth representation in African political offices is strikingly low, with the median age of leaders at around 62 years. This gap highlights the need for policies that foster intergenerational equity transfer and meaningful youth contributions, especially at the AU level.

    The AU Commission’s Youth Division underscores the value of mentorship and civic education programmes. Countries that have implemented these initiatives witnessed increased youth participation in voting and leadership roles.

    Africa’s creative sector should be a leading area of youth employment. The sector holds immense economic potential, as noted by the United Nations Conference on Trade and Development (UNCTAD). The creative sector is estimated to be worth $2.25 trillion globally, yet Africa’s share is minimal due to low intellectual property (IP) rights ownership.

    The global animation industry alone grosses about $300 billion dollars annually but only a fraction of that value accrues in Africa. However, the IP rights are not owned by African animators, thus most of the revenue does not stay on the continent. Investment in the creative sector, coupled with effective policy to incentivise protection of African IP, could stimulate job creation and economic diversification.

    A surge in African patent applications, as reported by the World Intellectual Property Organisation (WIPO), signals growing innovation. Governments and private entities should capitalise on this trend by investing in creative hubs – such as Uganda’s Innovation Village – and supporting emerging artists and entrepreneurs.

    Investing in education is crucial, given the strong link between education and socio-economic development. Governments must prioritise education funding, ensuring curricula are aligned with modern job market needs.

    The transformative role of technology in empowering Africa’s youth is significant. The continent is expected to record the highest fixed broadband subscriptions growth rate between 2024 and 2027 globally. Leveraging technology for political engagement is crucial to increase civic participation and youth engagement in political processes.

    The challenges and opportunities facing Africa’s youth in leadership and the creative sector reveal a roadmap for transformative change. By addressing these challenges through youth inclusion, evidence-based policies and strategic investments, Africa can unlock its demographic dividend and empower its young population to actively shape the continent’s future.

    A data-driven approach is essential to ensure that the youth not only become beneficiaries but active contributors to Africa’s socio-economic and political landscape.

  • Africa Prosperity Network Congratulates Dr. Sidi Ould Tah on His Inauguration as African Development Bank Group (AfDB) President

    Africa Prosperity Network Congratulates Dr. Sidi Ould Tah on His Inauguration as African Development Bank Group (AfDB) President

    The Africa Prosperity Network (APN) warmly congratulates Dr Sidi Ould Tah on his inauguration as the 9th President of the African Development Bank Group.

    We commend the clarity and urgency of his inaugural address, particularly his strong emphasis on empowering SMEs, women, and youth. These groups are central to Africa’s future and must be given access to finance, jobs, and the 1.5 billion-strong AfCFTA market to truly drive the continent’s economic transformation and integration.

    Equally timely—and perhaps most critical—was Dr Ould Tah’s vision of broadening, consolidating, intensifying, and diversifying sources of financing for Africa’s development. If any leader of AfDB, the most instrumental development finance institution for Africa, can deliver on this urgent mandate, it is he— given his proven track record, his formidable network, and his unwavering commitment.

    APN looks forward to deepening significantly our partnership with AfDB under his leadership and in collaboration with the AfCFTA Secretariat in mobilising Africa’s private sector in owning and driving forward Africa’s single market with urgency, so that Africans may secure the dignity, peace, development, and prosperity we desire and deserve.

    Gabby Asare Otchere-Darko
    Executive Chairman, Africa Prosperity Network

  • Shaping Africa’s Future: A Prosperity-Driven Narrative

    Shaping Africa’s Future: A Prosperity-Driven Narrative

    Written as a foreword in the APD 2024 Magazine by H.E. Nana Addo Dankwa Akufo-Addo, Former President, Republic of Ghana

    Africa stands poised to be propelled towards prosperity. The Africa Prosperity Network (APN) and the African Continental Free Trade Area (AfCFTA), and their partners, once again embark on a transformative journey to challenge prevailing stereotypes and redefine structures that reflect the true essence of the continent. The Africa Prosperity Dialogues (APD) have set the stage for dynamic, actionable narratives that uphold the dignity of Africa and her people.

    As Africa and Global Africa step into a future of shared prosperity within a single African market, an Africa Beyond Aid, four key messages that must undergird the continent’s prosperity narrative cannot be overemphasised.

    Firstly, there is an urgency to define our own positive narrative. For too long, external perceptions have shaped our identity, overshadowing the richness and potential of our continent. Poverty is not our narrative; prosperity must be, and it demands a collective effort to address governance issues. Investing in our people will help to harness Africa’s abundant resources towards development.

    Secondly, a deliberate and committed approach is essential to transform our development trajectory. With abundant natural resources, an active, youthful population, and indigenous knowledge, Africa possesses the necessary elements to become a global powerhouse. To make this happen, we must do business differently by embracing bold development ambitions, fostering innovation, and taking strategic actions to drive economic transformation.

    Thirdly, intra-African trade and cross-border impact investments are paramount. Throughout history, robust trade has been a catalyst for development, and the AfCFTA presents an unprecedented opportunity. For it to be a success, we must view the AfCFTA both as a linchpin of our economic transformation and an actionable and bankable policy drive that leads to a continent-wide prosperity.

    Finally, the theme for the year 2024 (Produce, Add Value, and Trade) encapsulates the essence of our prosperity vision. To fully leverage the opportunities of a single African market, we must scale up production, add value to our goods and services, and address obstacles hindering intra-African trade. It is time to move beyond trading raw materials and commodities in order to elevate Africa’s position in the global marketplace.

    The message from Africa Prosperity Dialogues 2024 is clear: the key to Africa’s prosperity lies in production, value addition, and robust trade. The President of the Republic of Ghana, in collaboration with Ghana’s partners, invites all Africans to join hands in building a solid foundation for the continent’s prosperity-the Africa We Want and the Africa We Deserve.