How Tech Can Close The Gap In Africa

In the latest Africa’s Investment Destination Index released in April, Nigeria was ranked 19 out of 54 African countries. In effect, if a foreign investor was to make a choice in which economy to do business, Nigeria would be their 19th choice. It is a steep fall for a country, which not so long ago was ranked as the third-fastest growing economy in the world.

- Obinwanne Okeke

For much of Africa, the ‘Africa rising’ slogan is wearing thin. A big problem is that many African economies are rentier states. In effect, when there is a boom in the sale of natural resources, the economy looks healthy. At best, this creates a superficial climate of prosperity; at worse it fosters complacency. The revenues from such booms are largely frittered away by the political class. Little effort is ever made to close the infrastructural gaps that could aid SMEs.

According to the index, some economies are steaming back to life. Zambia is a clear case in point, in fifth position. Egypt’s economy stands third; a clear sign that it has put the political turmoil of the last few years firmly behind it. This strengthens my belief in an Africa that is capable of rising above its challenges, an Africa that has the resources to courageously confront the future. At the same time, there is a sadness that some African countries are not focusing on their economies enough to become favorable destinations for foreign direct investments.