Opinion
How can Africa capitalize on the current geopolitical changes?
However, a youth population of such magnitude also indicates that the real challenge of the 21st century is the ability to address this demographic imbalance in a manner that will preserve the interests of future generations. A demographic dividend is needed. Inspired by Jean-Jacques Rousseau’s seminal work on the Social Contract, there is need for a new inter-generational social contract that is driven by the necessity to balance the needs of the current and future generations; between a young Africa and an aging population elsewhere in the world.
African partnerships with new emerging economies
The once dominant influence of the West is diminishing and it will have to metamorphose a new relationship with Africa.
China, India and new players, have increased their engagement in Africa in rather dramatic ways transforming Africa’s traditional trade and investment relations. The largest increases in foreign direct investment to Africa in recent years have come from the BRICS (Brazil, Russia, India, China and South Africa), targeting Africa’s natural resources, from oil in Angola, Algeria, Nigeria and Sudan to mining in Niger, Mauritania, Zambia and Liberia.
It is however a very partial view of what is going on. There is significant diversification of investments. For example, India is investing in social services, textiles and medium sized enterprises as well as technology and China is investing heavily in Africa’s infrastructure and services. Ways of doing business have been revolutionized accompanied by advances in technology. This new paradigm of engagement reflects cooperation in which partners see themselves as peers in mutually beneficial relationships. Interest in Africa from a larger pool of partners is favorable to the continent and is creating choice. Africa in turn, is well positioned to be a more assertive player in the global arena and to capitalize from the different development models and comparative advantages offered by the array of partners.
To benefit fully, Africa must strengthen its institutions, take the lead in negotiating, designing and implementing strategies with partners to leverage their comparative advantages as well as broker good deals. Africa must transform from being perceived as a price taker to a price maker.
The Africa –EU future
Europe and Africa have been important to each other with ties stemming from their history and geography and the fact that their relationship connects two continents. Europe has been more of a trade, development and investment partner while Africa has been a crucial source of hard and soft commodities for Europe, such as strategic metals and minerals and captive market. Having said this, perhaps the most successful area in its long partnership has been in the thematic area of peace and security.
