Africa, with its youthful population and vast potential, faces a pivotal moment at Davos 2025 as it balances its unique development realities with global priorities. As world leaders convene in Geneva, key African institutions like the African Export-Import Bank, the African Continental Free Trade Area, and the African Circular Economy Alliance are pushing for Africa’s voice to be heard. The dual themes of “circularity” and “singularity” offer contrasting yet interconnected pathways for Africa’s economic transformation.
The circular economy—a model focused on extending resource use, reducing waste, and promoting sustainability has become a central theme at Davos. For Africa, it represents a $1tn opportunity, promising breakthroughs in areas like food systems, sustainable mining, and waste management. The model departs from the traditional “take-make-dispose” system and emphasises resource efficiency. While primarily championed by Western nations, Africa is starting to explore its benefits through alliances like the ACEA, which seeks to consolidate regional gains and tackle shared challenges.
Initiatives such as the U.S.-backed EDGE fund, which supports public-private partnerships for sustainability and gender equality, provide a glimpse of what is possible. EDGE has already invested $100m in inclusive, climate-conscious projects, showing how collaboration can drive progress in Africa.
However, Africa’s engagement with the circular economy remains in its infancy. The continent still grapples with dependency on foreign aid, grants, and loans. Moving toward a circular economy would require policy alignment, regional integration, and a shift in mindset from dependency to innovation-driven sustainability.
At the same time, Africa is increasingly stepping into the global conversation around singularity—advancements in AI, quantum computing, and brain-machine interfaces. While AI could add an astounding $1.5tn to Africa’s economy, most of the continent’s progress in tech has been organic, driven by bootstrap entrepreneurship rather than coordinated policies. Of Africa’s 10 unicorns, all but one (Andela) operate in fintech, leaving significant gaps in sectors like healthtech, agritech, and edutech.
Africa’s AI adoption is growing but uneven. Only seven countries—Benin, Egypt, Ghana, Mauritius, Rwanda, Senegal, and Tunisia—have drafted AI strategies, and none have implemented AI-specific regulations. While AI is being used in healthcare innovations like diagnostic imaging in Ghana and Rwanda, the continent lacks the infrastructure and policy frameworks needed to fully harness its potential.
Africa faces three major barriers to leveraging AI for development:
Employment Mismatch: AI’s growth has not yet translated into widespread job creation for Africa’s massive youth population.
Fixation on AGI: The global obsession with artificial general intelligence risks sidelining AI’s immediate potential as a productivity enabler for workers in sectors like education and healthcare.
Policy Gaps: Africa lacks the policy frameworks necessary to scale AI adoption and ensure its alignment with development goals.
Experts argue that Africa should adopt an “AI for good” approach, emphasising tools that complement human talent and strengthen democracy. For example, AI could be deployed to enhance the productivity of blue-collar workers, teachers, and healthcare providers, fostering inclusive development.
Davos 2025 coincides with South Africa’s historic presidency of the G20, the first time an African nation has held this role. Combined with the African Union’s new permanent seat in the G20, Africa has an unprecedented opportunity to shape global economic and geopolitical discussions. By championing policies that align with the AfCFTA’s vision of a unified African market, the continent could steer global debates toward issues of regional significance.
The AfCFTA, representing 1.4 billion people and a $3.4tn GDP, offers a framework for Africa to integrate its economies and address critical challenges. A key priority should be developing policies akin to the EU’s AI Act to regulate AI and support informal sector workers, who are the backbone of Africa’s economies.
At Davos 2025, Africa stands at a crossroads between embracing circularity and leveraging singularity. Both pathways offer transformative opportunities, but they require bold leadership, policy innovation, and global cooperation. With the G20 presidency and the AfCFTA as leverage, Africa can chart a course that aligns global priorities with local realities, ensuring that its youthful population thrives in a rapidly changing world.
Dr Nduneche Ezurike, an opt-in member of the Harvard Business Review Advisory Council, is the Divisional Head of Communications and Technology at Optiva Capital Partners, Lagos @ThePUNCH
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