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The African Market: A Great Promise Yet to Materialize (Part 2)

By Eva Morletto15 août 2024

By 2050, within two generations, Africa will have 900 million new urban dwellers, about double the population of the European Union. This market is enormous. Its proper development is crucial for the social and economic balance of the planet.

The luxury goods market in Africa is worth around US $ 6 billion (Shutterstock)

$ 170 B

The annual sum needed to develop infrastructure in Africa, according to the AfDB

$ 34 500

Average wealth per capita in Mauritius tops the league table

750 M

The number of Africans under the age of 18 by 2030

According to UNICEF data, with an average of over four children per woman, Africa's population is expected to increase by 170 million by 2030, bringing the number of citizens under 18 to 750 million.

This trend parallels an economic growth rate projected to be the fastest in the world after Asia over the next ten years, forecasted at 4% by the IMF for sub-Saharan Africa.

It's easy to deduce that the continent's development will become increasingly crucial for the world's economic and social stability if we want to avoid massive migrations from the most populous areas.

In 2009, during COP 15 in Copenhagen, developed countries jointly committed to providing "100 billion dollars per year" to developing countries—particularly African nations—to finance their climate change mitigation efforts. The goal was to mobilize public and private funds from 2020 to support the most economically and environmentally vulnerable states.

Countries such as Angola and Nigeria, which have become attractive destinations for major Western brands thanks to oil revenues, have seen the opening of boutiques for internationally recognised brands such as Prada, Zegna and Armani. Here, the city of Lagos in Nigeria (Shutterstock)

Today, it is evident that this promise has only been partially fulfilled by the G20 countries that made the commitment. The transfer of Special Drawing Rights (SDRs), accounting unit of international financial institutions, from rich to poor countries has been close to a complete failure. Of the 100 billion dollars that were supposed to be transferred, only 13 billion were. While Spain, France, and Japan have honored their commitments, other countries like Germany and the United States have not.

Massive spending by Western countries on arms and aid to nations currently in conflict will only delay this vital support to African nations facing economic difficulties due to climate change.

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