21st-Century Africa: Governance and Growth

To achieve sustainable development, African countries must strengthen institutions and leadership to build states that are credible, competent, and committed to serving the public. Governance reform should focus on improving trust through inclusive policymaking, transparency, and a renewed social contract between citizens and the state. Key governance indicators - such as rule of law, regulatory quality, and control of corruption - need to improve significantly to create the conditions in which economic transformation and social progress can take root.

Africa must prioritize raising productivity across all sectors, beginning with agriculture, which remains dominated by low-yield smallholder farming. Structural transformation also requires the modernization of industry, recognizing that future manufacturing will likely be more capital-intensive and globally competitive than labor-absorbing. In parallel, the service sector must be empowered to generate jobs and value, particularly in urban areas, where growth and innovation are accelerating. The goal is to shift from subsistence to productivity-led growth in ways that reflect Africa’s specific demographic and economic context.

With the fastest-growing population in the world, Africa must invest urgently in its people. Education systems need to deliver relevant skills for modern economies, and health systems must be strengthened to improve life expectancy and resilience. Women and youth, in particular, should be empowered to participate fully in the economy. Facilitating the demographic transition - through improved access to reproductive health and reduced infant mortality - is also essential. Expanding and improving social protection programs will help build human resilience and ensure broad-based opportunity.

Deepening regional integration through initiatives like the African Continental Free Trade Area (AfCFTA) can unlock the continent’s economic potential. Beyond tariff reductions, African countries must remove non-tariff barriers and harmonize regulations to improve the movement of goods, services, and people. Investments in cross-border infrastructure—including roads, rail, ports, and energy—are equally critical to enable trade, reduce logistics costs, and connect markets. Participation in global value chains should also be expanded, moving beyond commodity exports toward the production and export of higher-value goods and services.

Digitalization is a key enabler of inclusive growth. Policymakers must improve access to affordable and reliable internet and electricity, which are foundational for the adoption of technology by businesses and individuals. Reforms should promote competition in the telecom sector and support region-wide digital infrastructure. In addition to improving availability, governments should expand digital literacy, provide business advisory services, and support local content and innovation. Done right, digital technologies can increase productivity, inclusion, and connectivity across Africa’s rapidly urbanizing populations.

Africa must embrace a development model that is both inclusive and environmentally sustainable. Despite contributing the least to global emissions, the continent faces disproportionate risks from climate change—including droughts, floods, and rising temperatures. Governments should invest in climate adaptation, strengthen the resilience of agricultural systems, and modernize infrastructure using green technologies. With vast solar potential and critical mineral reserves, Africa can become a leader in clean energy solutions. Sustainability efforts must be integrated with broader goals to protect ecosystems, improve health outcomes, and build future prosperity.