Major Economic Transformations Creative Africa's Landscape by 2025: Key Geopolitical Shifts Unveiled
Russia is strengthening its economic and security ties in Africa, investing in mining, energy, and infrastructure projects, and supplying around a quarter of Africa's imported arms. This move signals a growing presence in the continent, as Russia seeks to expand its influence.
Many African economies remain heavily reliant on resource exports, with over half earning at least 60% of their export revenues from oil, gas, or minerals. These economies are vulnerable to fluctuations in global demand, highlighting the need for diversification.
In a significant development, Egypt and Ethiopia joined the BRICS bloc in 2023, amplifying Africa's voice in major emerging-economy forums. This membership could pave the way for increased cooperation and investment in the continent.
The African Continental Free Trade Area (AfCFTA) is a transformative force shaping Africa's economic future. By boosting intra-African trade by 52% by 2035 and creating about 30 million new jobs, the AfCFTA holds immense potential for economic growth and development. In 2023, Niger joined the AfCFTA as part of this economic integration project.
The Gulf states have also increased their investments in Africa, with firms from the UAE, Saudi Arabia, and Qatar announcing over 73 new foreign direct investment projects worth approximately $53 billion in 2023. This investment could stimulate economic growth and development across the continent.
The "Alliance of Sahel States," formed by Burkina Faso, Mali, and Niger, presents challenges for economic integration but also offers opportunities for the nations involved to strengthen their internal cooperation and define independent economic paths. This move reflects efforts by these nations to break away from existing regulatory and trade environments and forge their own paths.
Turkey is deepening its engagement with Africa, launching new investment projects across the continent and increasing trade with Africa significantly. This increased engagement could lead to further economic growth and development in Africa.
In a symbol of Africa's rising importance, the African Union secured a permanent seat in the G20, reflecting the continent's growing influence on the global stage.
However, political transitions in West Africa in 2025 led Burkina Faso, Mali, and Niger to formally withdraw from ECOWAS and create the "Alliance of Sahel States." This move introduces new regulatory and trade environments across the region, potentially disrupting existing economic relationships.
In conclusion, Africa's economic landscape is undergoing significant changes, with multiple countries and entities increasing their investments and partnerships in the continent. The AfCFTA, BRICS membership, and increased engagement from the Gulf states and Turkey all point towards a more integrated and prosperous Africa. However, the political transitions and formation of new alliances, such as the "Alliance of Sahel States," also present challenges that need to be navigated carefully.
