Prioritizing economic diversification, trade integration, and job creation are, for the second year in a row, key directions to focus on to overcome economic headwinds on the African continent. The Foresight Africa 2024 report urges local leaders to take action and highlights the particular importance of development finance to tackle climate change. Despite being very much similar to the 2023 edition, this year’s report does not state the need for strategic interventions in healthcare and food security to mitigate the Covid-19 pandemic’s long-term effects but does not confirm if these issues have already been addressed.
The 2024 priorities set by the authors of the report who include multiple experts at the U.S.-based Brookings Institution, involve the high level of indebtedness of African economies that is lurking in the background. However, despite the negative impact of public debt, Africa is set to be the world’s second-fastest-growing region in 2024 as outlined during the report’s launch.
Aloysius Uche Ordu, Senior Fellow and Director of the Africa Growth Initiative in the Global Economy and Development program at the Brookings Institution who is the publisher of the Foresight Africa 2024 noted that the economic agenda had been a key focus of Foresight Africa 2023 due to the prediction that most global countries would be heading into recession.
“This did not materialise, as central banks took a strong stance to fight inflation,” he said.
“Indebtedness is a big deal on the African continent right now but in spite of all that, the Intelligence Unit in London predicts that this year (2024), Africa will be the world’s second fastest growing region, with 12 of the 20 fastest growing countries,” he added.
“We sharpened our strategic thrust to five key thematic areas: development financing, climate change, technology and innovation, jobs and structural transformation, and trade and regional integration. Underscoring these five main themes are cross-cutting themes of governance, gender, and youth that are interconnected and relevant to the work we do,” Ordu explained.
In summary, the findings of the Foresight Africa 2024 note that African countries should focus on mobilizing domestic resources, strengthening financial systems and ensuring the responsible use of development funds. This is seen as being critical to help the continent to prepare for future shocks due to the climate crisis.
Speaking of the climate crisis, with 2023 being documented as the hottest year on record, the report highlighted the urgency for increased financial commitments to mitigate climate change as well as equitable solutions that recognize and address historical injustices.
The economic component of the report notes an increasing opportunity for entrepreneurs as Africa gets younger – its youth population is on the rise – and the timing is seen as opportune for startups with an environmental and social focus. Together with the African Continental Free Trade Area that was established in 2018 and fast-paced digitalization, African economies can benefit from a US$3 trillion market and boost intra-African trade by over 50%.
Foresight Africa 2024 also highlights the importance of education and gender equality.
Now in its 12th year, the Foresight Africa report was first published in 2012 and underwent a fundamental review last year.
