Africa's Moment: Seizing Opportunities in the Tech Revolution

The world is witnessing a technological revolution that is reshaping the way we live, work, and do business. At the heart of this transformation lies artificial intelligence (AI), a technology with the potential to revolutionize the production of goods and services across sectors. As Africa navigates this rapidly evolving landscape, the question arises: how can the continent seize the opportunities presented by the tech revolution to drive economic growth and improve lives?

I'm pleased to say that there are already inspiring examples of how our continent is seizing these opportunities. Right here in Rwanda, we've witnessed the groundbreaking work on producing mRNA vaccines. This not only positions African countries on the vaccine production map but also signals the dawn of a burgeoning biotech industry. Notably, the AI component was developed by an African startup that was later acquired by BioNTech – a testament to the talent and innovation that exists within our borders.

As we look to the future, Africa is also exploring the frontier of genomics, leveraging our rich biodiversity and genetic resources. This lays the groundwork for precision medicine and treatments tailored to the specific needs of African populations and the diaspora. To multiply these positive examples, we must focus on key enablers.

First, digitalization. Data is the new gold. Second, we must reform and invest in our education systems with a particular emphasis on science, technology, engineering, and mathematics (STEM), ensuring equal opportunities for women and men. It's heartening to see Rwanda hosting a regional institute of mathematics and forging partnerships with well-known academic institutions. This is an example that needs to be multiplied across the continent.

Third, we need to support our startups. It's imperative that more funding, especially from the domestic private sector, is directed towards this vibrant sector. At IFC, we're investing in startups through our Direct Disruptive Technology Fund, focusing on technologies that will make a difference for development. But we need more billionaires and millionaires in Africa to believe in and invest in these startups.

Fourth, we need to foster public-private dialogue and leadership. Countries have been developing public-private partnerships, but there are rare opportunities for the private sector and leadership of the continent to meet. If we want to move forward with the African Continental Free Trade Area (AfCFTA), these forums need to be created to build African supply chains and value chains.

Fifth, we need to ensure the free movement of people and talent within Africa. We cannot advance the AfCFTA if people cannot work in neighboring African countries. I applaud President Kagame for allowing visa-free travel for African citizens, enabling the best minds to visit and contribute to the country's development.

Beyond the tech sector, agriculture and energy transition present immense opportunities for job creation and improving living conditions. In the energy sector, while Africa has made commendable strides in renewable energy production, much remains to be done. The World Bank Group is pushing an initiative to connect 300 million Africans to electricity by 2030. This ambitious goal requires addressing constraints such as the financial health of utilities and increasing private sector investment in generation, transmission, and distribution.

Moreover, as we consume the products needed for renewable energy, Africa must be part of the value chain for producing these items. With an abundance of critical minerals essential for digital transformation and renewable energy, we must work together to ensure that the supply chain and transformation happen within the continent.

Food security is another pressing issue. Africa has the arable land, water, and people to produce food at a level that protects our macroeconomic situation and improves people's well-being. Recent progress in fertilizer production, such as IFC's investments in Nigeria and Morocco, is encouraging. However, we need to address land issues, ensure the inclusion of small farmers, and attract large investors to the sector.

Lastly, financing is crucial. African capital markets are shallow, partly due to insufficient public offerings. We need to provide citizens opportunities to own stakes in state-owned enterprises, creating a sense of ownership and interest in their performance. Additionally, we must focus on equity support to reduce companies' leverage. IFC intends to double the size of our equity portfolio to support the creation of a strong middle class of African producers who can participate in the global economy.

A decade ago, the slogan was "Africa Can." Today, it should be "Africa Is." Africa is creating jobs for its youth, building resilient growth, fostering a robust private sector, nurturing a healthier population, and ensuring equal rights and opportunities for women. As President Kagame said, "Africa's story has been written by others. We need to own our problems and solutions and write our own story."

Let us seize the opportunities presented by the tech revolution and beyond to write a new chapter of innovation, growth, and shared prosperity for Africa.

Africa CEO Forum IFC - International Finance Corporation Jeune Afrique