AFRICA’S SECRET WEAPON FOR THE NEW WORLD ECONOMIC ORDER – PART 1

By Dr. Ezeoka Emmanuel

In the wake of the shifting global economic landscape, the concept of a “new world economic order” has begun to take shape — one in which the balance of power is rapidly transitioning. The traditional economic powers — the United States and the European Union — are facing the realities of economic disillusionment and internal upheaval. In the U.S., the harsh tariffs on agelong allies, controlled withdrawal from external financial commitments, shrinking middle class and rising income inequality are fueling socioeconomic anxieties, while in the EU, the challenges of Brexit and political fragmentation are testing the very foundation of the European project. Meanwhile, mounting inflation, labor shortages, and debt crises highlight emerging strain in these economies.

China’s rise continues to challenge the status quo. As the second-largest economy in the world, its Belt and Road Initiative is expanding its influence across continents, including Africa, where infrastructure investments and strategic partnerships are reshaping global trade routes. Furthermore, China’s technological advancements, particularly in AI, green energy, and digital currencies, are positioning it as a formidable rival against the west.

But amidst this changing global landscape, Africa stands at a unique crossroads, positioned to capitalize on global emerging trend as a crucial player in the redefined global economy.

Africa & The New World Economic Order 

This new world order is not simply a reorganization of old power structures—it is a revolution! Nations are redistributing global influence and establishing new economic power centers. Regional trade agreements and economic blocs, such as the RCEP in Asia and African Continental Free Trade Area (AfCFTA), are gaining prominence, reflecting a shift from global integration to regional cooperation. State capitalism, as exemplified by China, challenges the Western free-market model, leading to an ideological competition. 

In this new landscape, innovation, knowledge economies, and international collaboration are the engines of growth. With its youthful population and rapidly expanding entrepreneurial class, Africa is uniquely positioned to take advantage of this evolving development.

The incoming new order appears more fragmented, diverse, and contested, with multiple power centers and competing visions for the future. This transition is reflected in Africa’s new private sector driven vision for the future: to shape the new world economic order for a Global Africa. Africa is determined to transition from being merely a supplier of raw materials to becoming a vibrant, knowledge-driven, self-reliant economic power center through stronger intra-African trade and a shared economic agenda. This vision not only seeks to benefit Africans but positions the continent as a leading force in the global economy.

Entrepreneurship: Africa’s First Secret Weapon 

But Africa’s aspirations will remain just that — aspirations — if the continent does not act with urgency. The question is not whether Africa can compete in this new world economic order, but whether African nations are willing to empower the agents who will define its success. If Africa hopes to escape the long shadow of dependency on raw materials and negative external interferences, it must prioritize the deployment of one of its secret weapons – entrepreneurship. It is no longer news that SMEs represent 90% of all private sector businesses, create 80% of job opportunities in many sub-Saharan markets, and supply 80% of all consumer goods sold on the continent.

Around the globe, nations are currently investing heavily in promoting and driving innovation, strengthening their private sectors, and positioning their economies for the future. For example, the U.S. recently committed $280 billion to boost domestic semiconductor manufacturing under the CHIPS and Science Act, aiming to reduce reliance on Asian chip producers. China on the other hand, continues to advance rapidly in AI, electric vehicles, and 5G technology, with its “Made in China 2025” strategy prioritizing technological self-reliance.

In contrast, Africa continues to face systemic barriers to entrepreneurship, including bureaucratic inefficiencies, complicated and inefficient regulatory frameworks, lack of access to capital, inadequate infrastructure, limited access to markets, corruption, inadequate support systems and high taxation. Without addressing these systemic barriers, Africa risks being left behind in this unfolding economic reality.

Key Reforms for Africa’s Economic Future 

The need for reform in Africa is clear, and several key areas must be addressed to create a more conducive environment for entrepreneurship and economic growth. These reforms include:

1. Financial Sector Reform: Improve access to finance through the development of microfinance institutions, venture capital, and government-backed loan programs, as well as reducing interest rates, providing tax incentives for small businesses and enhancing financial literacy for entrepreneurs.

2. Infrastructure Development: Invest in reliable electricity, transportation networks, internet connectivity, and digital infrastructure to support business operations and innovation across the continent.

3. Regulatory Reform: Simplify business registration processes, reduce red tape, and creating a more transparent, efficient, and entrepreneur-friendly regulatory environment to lower the cost and time needed to start and run businesses.

4. Market Access Enhancement: Expedite executions on regional integration through initiatives like the African Continental Free Trade Area (AfCFTA) to improve access to larger markets, reduce trade barriers, and encourage cross-border entrepreneurship.

5. Education and Workforce Development: Reform education systems to focus on skills development, technical and vocational training, and entrepreneurship education to better align labor market needs with the skills of the workforce.

6. Entrepreneurial Ecosystem Support: Establish and encourage stronger support systems such as business incubators, accelerators, mentorship programs, and entrepreneurial networks to provide entrepreneurs with guidance, resources, and opportunities to scale their businesses.

7. Legal and Property Rights Reform: Strengthen intellectual property rights, improve contract enforcement, and ensure the protection of property rights to build investor confidence and safeguard entrepreneurs’ innovations.

8. Anti-Corruption and Governance Reform: Strengthen institutions, reduce corruption, and promote political stability through transparent governance, rule of law, and accountability to create a more predictable and secure business environment.

The Rise of Africa’s Entrepreneurs 

Take, for example, the story of ID Freeman, a young man from Anambra who, armed only with a computer and a vision, founded an MSME De-risking and Funding Facilitation Platform called Capsule, which has won awards across multiple countries. ID Freeman’s story is not one of chance, but a reflection of the burgeoning ecosystem of innovation across the continent. From Onitsha to Accra, Nairobi to Kampala, and Cape Town, African entrepreneurs are developing solutions to the continent’s most pressing challenges — and in doing so, they are charting Africa’s new economic trajectory.

These entrepreneurs, often self-taught, determined, and unafraid of failure, represent Africa’s future. They are reshaping industries ranging from tech to agriculture, and from finance to renewable energy. Consider the tech hub of Nairobi, where mobile-based businesses are revolutionizing banking in sub-Saharan Africa, or the rise of sustainable agricultural practices in rural Uganda, driven by tech-savvy farmers. These individuals are not waiting for foreign aid; they are creating scalable solutions for Africa’s economic and social challenges, one business at a time.

However, these inspiring stories are not yet widespread. To ensure that Africa’s entrepreneurial revolution doesn’t remain an isolated few but becomes a continent-wide phenomenon, the structural reforms highlighted above are needed, continent-wide. The time has come for Africa to move beyond the constraints of its historical economic models and embrace the limitless potential of its people.

A Call to Action 

The African Union’s government-led Agenda 2063 lays out an ambitious vision for the continent’s future, yet we must confront a hard truth: without enabling the private sector and radically rethinking our economic policies, we will continue to play catch-up. The path to reform requires bold policy decisions that dismantle the barriers stifling innovation and growth.

African governments must invest in and encourage investors to build ecosystems of innovation in every country, leveraging the vast potential of universities, tech hubs, and local businesses. It is time to adopt policies that incentivize the private sector, creating environments where entrepreneurs can scale their businesses, access funding, and innovate freely. Only then will Africa truly harness the full power of its people, creating a knowledge-driven economy that will rise to meet the challenges of the new world economic order.

This commitment must be matched by intentional investors and partners who shift from short-term, resource-based investments to long-term collaborations that focus on Africa’s homegrown solutions.

Africa’s Moment to Lead 

The new world economic order demands new leadership — and Africa, with its young population and burgeoning entrepreneurial ecosystem, is poised to answer that call. Africa’s entrepreneurs will not only be participants in this new era — they will be leaders, shaping the future of the global economy. The time has come for Africa to take ownership of its economic future. The world is watching — will Africa rise to the occasion?

Emmanuel Ezeoka, a Nigerian entrepreneur and thought leader, is the creator of Global Africa Agenda, Africa’s first private sector agenda for Africa’s future. As Chairman of Subway Labs Infrastructure Partners, a leading city development organization, he champions sustainable, inclusive growth models for the continent.  Committed to global development equity, he writes from Abuja, Nigeria. Contact: ezeokaemmanuel@gmail.com   

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