Africa 2024: Contrasting Growth, Shared Resilience

Ndéa Yoka, Business Africa host-producer

Africa News

Business Africa

In this edition of Business Africa, we analyze the resilience of the African economy in 2024, marked by modest growth of 3.6% despite global crises. We also discover Botswana’s innovation with the Inshelve app, which is reinventing transport and grocery delivery. Lastly, we explore the rapid rise of gambling and sports betting in Zimbabwe, offering an economic alternative in a time of crisis.

2024: A Year of resilience for Africa

Despite global shocks, the African economy showed great resilience in 2024. The IMF and the African Development Bank forecast an average growth of 3.6%, supported by economic reforms and recovery after global crises. However, inflation and rising debt remain major challenges.

"Economies that are relatively complex are those that advance quickly." – Samuel Mathey, economist and president of FAFEDE.

Raw Materials: A Growth Driver for Africa

The surge in raw material prices, particularly oil, benefited several African oil-producing countries. These price hikes allowed some countries to export more than they import, fueling their growth. As a result, many African countries diversified their energy sources, notably through oil discoveries and energy projects.

CFA Franc Devaluation: A Controversial Measure

Among the proposed solutions to strengthen economic competitiveness, the devaluation of the CFA franc in the CEMAC zone has been mentioned, as highlighted recently by the IMF. For Samuel Mathey, devaluation could make the currency more attractive internationally, but it would also lead to a loss of purchasing power for local populations. This measure could worsen the situation for citizens already facing internal economic challenges. He warns, "When a currency devalues, the people in the country become poorer."

Outlook for 2025

For 2025, experts agree on the need to strengthen investments and diversify African economies. As Samuel Mathey pointed out, sustainable growth relies on reducing dependency on raw materials and expanding the private sector. Finding solutions to stabilize the currency and reduce economic tensions will be essential.

Gambling in Zimbabwe: Between Boom and Regulation

Gambling and sports betting are experiencing rapid growth in Zimbabwe, offering an economic alternative in a challenging context. In 2024, the industry recorded an 8.5% growth, the highest on the continent, although unauthorized betting has prompted the government to tighten regulations.

Some see this growing industry as a source of employment, despite challenges related to taxation and regulation.

Inshelve: The Taxi Revolutionizing Delivery in Botswana

Joseph Ngaiti, founder of Inshelve Cab Delivery in Botswana, transformed his taxi app into an innovative service that allows customers to shop online and have their groceries delivered quickly. Born out of a personal experience, his idea addresses the real need for easy access to shopping, even without a vehicle.