Paving the path to power and prosperity

THE GROUP of 20 (G20), an intergovernmental forum consisting of the top 20 global economies, has extended a warm invitation to the African Union (AU) to become a permanent member, recognizing Africa’s economic and political significance as the continent strives for a greater presence on the international platform. Upon the AU’s entry to the G20 on September 9, Indian Prime Minister Narendra Modi greeted the current AU chair, Comoros’ President Azali Assoumani, with a warm embrace and expressed his joy and enthusiasm. Africa’s entry has been viewed with particular importance as it grants Africa a greater platform to address the world's most pressing challenges that are felt especially more harshly in Africa.

 

Restoring the balance of power within Africa 

   The AU’s movement towards a greater international discourse has been gaining official international recognition, with the United Nations (UN) also embracing this development. Speaking on the G20 inclusion, Stéphane Dujarric, the spokesperson for the UN secretary-general, remarked, “This is a reflection of Africa’s growing influence and importance on the global stage[1].” Africa’s entry to the G20 takes even more significance as countries within Africa can now work to restore the balance of power amongst each other. While Dujarric’s remark emphasizes Africa’s global role, it also draws attention to imbalances in voice and power within the continent.

   Prior to this event, it was only South Africa that had a seat in the bloc, and South Africa’s relatively greater power has been evident throughout the course of modern history. South Africa is one of the Brazil, Russia, India, China, and South Africa countries (BRICS), a collection of emerging global economic powerhouses enjoying relatively stable political systems, promoting the country as a reliable economic and political partner. Yet this has generated a power imbalance, exacerbating disparities in wealth and influence among African nations and potentially hindering efforts to achieve regional integration and development. For instance, considering the vast size of the continent, African nations have formed regional economic communities like the Economic Community of West African States for further collaboration. However, without addressing the power disparities amongst nations, such communities will not be able to enjoy transparency in economic transactions and goals. Acknowledgment of the AU as a collective body hence provides a platform for even distribution of power and development for all African nations who will be able to enjoy the same rights to voice their concerns[1]. 

CONTRIBUTED BY THOMAS FRANK VIA UNSPLASH
CONTRIBUTED BY THOMAS FRANK VIA UNSPLASH

 

Africa’s continuing socio-economic instability 

   Before gaining visibility as a key international player, Africa underwent a painful history of colonization to a period of recovery from the aftermath—which remains an ongoing issue. Dujarric has acknowledged that “When much of the existing international multilateral architecture was built, most of Africa was still colonized and did not have an opportunity to have their voices heard[1].” Colonial policies caused the decline of African industries by creating exclusive dependence on European imports, not only for manufactured goods but also for necessities that were previously produced locally[2]. Colonizers forced African economies into a monocultural model focused on producing raw materials for European exports. This dependency and lack of industrial diversity is persisting today, despite the end of colonial rule. 

   Such developmental inequalities have caused severe socio-political turmoil throughout Africa’s modern history. Most importantly, since the post-colonial era, political corruption has been pervasive in newly formed African nations, significantly contributing to political instability, public distrust in the government, and slow economic progress, as well as deterring foreign capital investment[3]. These weak political systems consequently destabilize African economies, causing stubbornly high inflation, weak currencies, and low investment growth, preventing countries from maintaining enough capital to invest in the infrastructure and well-being of their citizens. This recurring economic instability is most evident in Sub-Saharan Africa’s turbulent economic environment. Marked by its slow recovery from the pandemic, spiking food and energy prices, and large public debt, this region is still combating inflation that threatens its income and food security[4]. 

   

Africa’s promising path to progress 

   Despite such challenges in development, Africa is outpacing several countries in its growth potential, as recognized by the G20. By 2040, the African continent’s population is expected to reach 1.1 billion, making it the world's largest workforce. With this potential in mind, the AU has set forth an ambitious plan called “Agenda 2063,” which outlines a strategy for achieving a prosperous Africa through inclusive and sustainable development. Agenda 2063 is a strategic blueprint for bringing about socioeconomic transformation across the continent. It aims to build upon prior and ongoing continental policy efforts aimed at fostering growth and sustainable development in the following areas: achieving food security, safe and resilient human settlements, productive employment, and the sustainable use of environmental resources[5]. Such goals also encompass Africa’s potential to become a leading center for digital technology, often referred to as the “Silicon Savannah[6].” 

   These goals seem plausible as Africa's economic expansion is projected to surpass global predictions in 2023 and 2024. The continent is predicted to exceed global economic growth rates over the next two years with an expected average real gross domestic product (GDP) of approximately 4% in 2023 and 2024[7]. Africa’s youthful, growing population, developmental plans, and bright economic prospects offer hope for Africa’s continued development and the realization of its full economic potential, ultimately improving the standard of living for millions.

 

The AU’s role on the global platform

   With the G20’s recognition of this growth potential, Africa is now becoming an active pioneer in shaping its own economic and political future. The AU has especially been considered valuable for the G20 for its tremendous environmental and economic potential. The continent also possesses abundant resources essential for addressing climate change. Africa possesses 60% of the world's renewable energy assets and more than 30% of the minerals necessary for low-carbon technology. Such underutilized resources represent a global significance in collaborating with the world’s key powers to address the climate crisis[8]. 

   Most importantly, for the G20, the AU represents a continent hosting the globe’s largest free trade zone. The African Continental Free Trade Area was established in 2018. This area seeks to accelerate intra-African trade and enhance Africa’s standing in the global market by strengthening the continent’s common voice and policies in global trade[5]. In its 2020 report, the World Bank estimated that intra-continental exports would increase by more than 81% while exports to non-African countries would rise by 19%[9]. These numbers prove Africa’s significance as the largest free trade zone, contributing to the prosperity of the overall global economy.   

 

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   Africa’s entry into the G20 is a significant milestone that signals its growing influence on the international stage. As the continent with the youngest and fastest growing population, Africa possesses immense economic potential that will propel its own success and benefit the developed nations of the world. The G20’s inclusion of Africa is an opportunity for greater representation when shaping its own socio-political future and furthering international cooperation for sustainable development. 

 

[1] World Economic Forum 

[2] University of Tennessee 

[3] U.S. Department of Justice 

[4] International Monetary Fund 

[5] African Union 

[6] European Commission 

[7] African Development Bank Group 

[8] Associated Press

[9] World Bank

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