“For too long, Africa has been treated as a recipient of aid rather than as a partner in progress,” former Ivory Coast prime minister Patrick Achi reminded us recently. His point was clear: without real investment in Africa’s people, infrastructure and environment, the world — including wealthier regions such as Europe — will not only face the consequences but also miss out on the opportunities of a more prosperous, resilient continent. It’s time to change this narrative and see Africa for its potential.
For too long, Africa has been treated as a recipient of aid rather than as a partner in progress.
Those consequences are well documented: rising migration as people leave in search of opportunity, or instability fuelled by unemployment. But the upside is just as significant. Africa represents:
- New markets for businesses, including European ones;
- Reliable clean energy as Africa positions itself to supply its and Europe’s industrial decarbonisation needs;
- Critical raw minerals in a world of fragile supply chains; and
- Regional security, with countries like South Africa able to reduce dependence on foreign energy while creating jobs.
And at the macro level, supporting Africa’s sustainable growth is also an investment in tackling climate change — the same climate change already driving catastrophic floods, fires and heatwaves across Europe as well.
Unlocking these mutual benefits, however, will require both greater investment and a willingness to see Africa differently. Too many businesses and investors label Africa “high risk” and hold back capital. However, the potential return on investment in Africa is significant, with a 2024 analysis from Bridgewater Associates showing that Africa’s youthful population could transform global growth trajectories. This possible return should be a key consideration for international financial institutions and private investors when evaluating investment opportunities in Africa.
Unlocking capital is the key to scaling projects that expand energy access, modernise infrastructure, grow markets and nurture new industries across Africa. The need for investment is evident, whether in clean energy — Africa holds 60% of the world’s best solar potential but only 1% of installed solar PV — or in the continent’s creative and live events industry, from Nollywood to Afrobeats, which requires capital to reach its full potential.
The good news is that the seeds of a new development compact are already there. Initiatives such as the EU’s Global Gateway are beginning to de-risk investment through concessional loans, subsidies and loan guarantees — making it easier for businesses to put their capital to work in areas from energy infrastructure to vaccine manufacture.
But the reality is that too many businesses still struggle to navigate these tools. Accessing information is complicated, and many potential investors don’t know how to tap into the support that exists. That needs to change.
But the reality is that too many businesses still struggle to navigate these tools. Accessing information is complicated, and many potential investors don’t know how to tap into the support that exists. That needs to change. The Global Gateway Forum in Brussels this October is one opportunity to simplify access, while the upcoming G20 Summit in Johannesburg provides a platform for governments and businesses to launch the kind of public–private partnerships that can unlock investment at scale. These partnerships, which leverage the strengths of both the public and private sectors, are crucial for tackling Africa’s development needs.
Another powerful example is Mission 300, a major drive by the World Bank Group and African Development Bank to connect 300-million people across Sub-Saharan Africa to electricity by 2030. This move would halve the current number of those without power. To support this, the International Development Association (IDA) secured a historic $100bn replenishment in 2024, helping to fuel the initiative and scale energy access fast. Later this year, the African Development Fund (ADF) replenishment will provide fresh momentum for this effort.
To be clear, traditional grant-based financing must remain part of this emerging development compact. Some needs will never deliver a financial return for private investors: from emergency humanitarian relief when disasters strike, to stabilising the continent’s most fragile economies. However, shrinking grant budgets demand sharper choices about where and how we deploy them. Well-targeted grants create the foundation for lasting growth and pull in private investment. Therefore, while the role of traditional grant-based financing may evolve, it will continue to be a crucial component of the development compact.
For example, grant investments that help universities align curricula with industry needs can attract companies eager to tap into a skilled talent pipeline. In this way, even limited grant finance can help unlock larger flows of private investment while addressing urgent social needs such as large-scale youth unemployment. Indeed, there is no shortage of companies ready to invest in the continent, drawn by its youthful population — the youngest in the world — yet many say they cannot find enough people with the right skills.
The opportunities are abundant: new markets, reliable clean energy for Europe, critical raw minerals and a young workforce that can power global growth. The Johannesburg summit is a chance to solidify the development compact needed to unlock these mutual benefits and pave the way for a prosperous future.
If the world can offer genuine partnership — moving from fear of risk to investment in the continent’s potential — the prize is enormous: prosperity and security for Africa, and for all of us.
Sheldrick is from Global Citizen and Van Wetter is from Enabel
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