One Africa, One Market - Repositioning Africa as the Largest Free Trade Area

Africa's historical yields will no longer be competitive in many crops resulting in high importation bills governments can't afford, increased food inflation, and exacerbated poverty and food insecurity. One root issue in many cases is the inefficiencies inherent in small scale farming. Climate change will further compound these production risks. How are African food and agribusinesses preparing to remain globally competitive? How are firms successfully serving domestic markets in light of increasing currency risk and opportunity cost of focusing on exports?

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With over 50 distinct countries, the African continent presents a kaleidoscope of regulatory environments, political climates, and macroeconomic challenges. From abrupt policy changes to unstable governance – epitomized by the recent wave of coups across West and Central Africa – doing business in Africa requires companies and investors to adapt to shifting sands. This panel delves into the tangible, hands-on approaches to managing political risks in the African context. How do stakeholders assess and prepare for potential political risks in Africa? How can businesses leverage grassroots community relations as a buffer against high-level political volatility? How are insurance models adapting to offer genuine, affordable, and durable protection to businesses and investors? How can dialogue between the public and private sectors remain robust amidst shifting political landscapes?

In a continent that is as rich in opportunities as it is in complexities, managing political risks becomes paramount for business success. This conversation will provide insights on this key topic to discuss the tools and tactics that will pave the way for successful business endeavors, and projects developed on the continent.

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In 2022, public debt in Africa reached USD 1.8 trillion. While this is a fraction of the overall outstanding debt of developing countries, Africa’s sovereign debt has increased by 183% since 2010, a rate roughly four times higher than its growth rate of GDP in dollar terms. Today, 60% of African countries spend more on repaying their debts than on healthcare, a trend that has been exacerbated by the COVID-19 pandemic, the war on Ukraine and the overall economic slowdown in the past few years. While international organizations have stepped in to support (for example, the G20 assisted 31 out of 36 eligible African countries with its Debt Service Suspension Initiative (DSSI)), the question remains: Why has Africa not been able to break out of this debt trap? And what role does the public and private sector play in moving past this dynamic?

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