Nigeria has positioned itself at the forefront of a continental drive to elevate Africa’s economy to a staggering $29 trillion by the year 2050. This bold vision was articulated by Vice President Kashim Shettima during a special forum titled “Forum Friends of AfCFTA: Turning Digital Trade into a Catalyst for Growth in Africa.”
The target of reaching a $29 trillion African economy is part of a broader strategy to leverage the African Continental Free Trade Area (AfCFTA). The AfCFTA aims to significantly boost intra-African trade, projected to increase by up to 52.3%, and is seen as a pivotal step towards economic integration and prosperity across the continent.
During the forum, Shettima emphasized Nigeria’s commitment to this continental economic transformation. He highlighted the demographic advantage of Africa, particularly Nigeria, which is on track to become the third most populous nation globally by 2050 with an estimated population of 440 million. “By harnessing our burgeoning digital landscape and our demographic dividend, we aim to propel Africa into the knowledge age,” Shettima stated.
The discussions at the WEF also underscored the potential of digital trade to act as a growth catalyst. Nigeria, with its 220 million telecom subscribers and 163 million internet users, is seen as a key player in this digital transformation. The Vice President noted that while Nigeria’s oil exports once peaked at $35 billion, the potential of digital economies, as exemplified by countries like India with its $120 billion in outsourcing revenue, offers a new blueprint for economic growth.
Global leaders, including the President of the World Economic Forum, Børge Brende, have echoed the optimism about the AfCFTA’s potential. Brende pointed out that the full implementation of AfCFTA could be transformative, citing it as a cornerstone for the projected economic growth. Other leaders from countries like South Africa, Botswana, and Egypt also expressed their support, discussing how their nations could contribute to and benefit from this economic uplift.
However, the road to a $29 trillion economy is fraught with challenges. The event highlighted the need for robust policy frameworks, infrastructure development, and the necessity to address issues like energy and transportation bottlenecks that currently impede economic activities. Moreover, the digital revolution requires not just the proliferation of technology but also reliable electricity to power the necessary data centers and support digital growth.
The forum also acknowledged the demographic challenge of integrating Africa’s youth into the workforce, with a projected net increase of 740 million people in the working-age population by 2050, which could either fuel growth or lead to increased unemployment if not managed well.
The commitment from Nigeria and the collective endorsement from African leaders at this high-profile forum signal a strong, unified push toward a prosperous future. This initiative, if successfully implemented, promises not only economic growth but also a significant reduction in poverty levels, fostering a new era of African economic influence on the global stage.