As global business and political leaders converge for their annual retreat at the World Economic Forum (WEF) in Davos, they will have the opportunity to engage in meaningful discussions and negotiations about an African continent that analysts widely regard as having immense potential. Despite its challenging past, Africa’s human and natural resources have drawn the interest of global investors who recognize that solutions to several global issues—such as climate change, energy transitions, and demographic shifts—could very well originate from within the continent.
This idea is central to Africa House, which is set to make its fifth appearance at the WEF in January 2025. Mamadou Toure, co-founder of Africa 2.0, the think tank leading this initiative, emphasizes their mission to correct the oversight of Africa in global discussions, despite its vast potential. “We believed the continent wasn’t granted the importance it deserves in international dialogues and political decision-making. Therefore, it became our responsibility to address this. It is fundamentally a civil society initiative,” he says, stressing that while other nations have had similar representations at Davos for years, Africa’s voice had largely remained unheard until now.
Africa House serves as a dedicated space for conversations and initiatives focused on Africa.
Numerous topics await discussion, as he highlights.
“For instance, the African Continental Free Trade Area represents the largest single market in the world today. This should not be underestimated. By 2050, it is projected that seven out of ten children born globally will be Africans, with the continent’s population expected to reach 2 billion. As we envision the future, the pressing question is: how do we initiate dialogue that can translate into actionable outcomes?”
Africa House aims to be a venue for honest and constructive discussions about Africa, offering a space where leaders from both public and private sectors can collaboratively mold the continent’s future.
Leapfrogging Technological Stages
Toure maintains a notably optimistic outlook on the continent’s prospects, citing its history of technological leapfrogging and regional cooperation as proof of what Africa can achieve through collective efforts and appropriate investment. As global technology continues to advance, Toure expresses concern that Africa risks being overlooked in these discussions, despite its successes in adopting technology.
“We recognize how Africa transitioned from fixed-line telecommunications to GSM [Global System for Mobile Communications]. This shift dramatically changed the landscape of the continent. There is a clear link between the introduction of GSM and Africa’s GDP growth,” he asserts.
Similar to this, Africa could potentially bypass multiple generations of energy technology to create systems that better align with its needs.
“Is it really necessary to replicate existing models? A decentralized approach featuring smart mini-grids, enabling communities to produce their own energy independently, might be more beneficial for Africa,” he reflects.
Africa House, he emphasizes, aspires to be the platform where these essential dialogues occur and actionable initiatives are born.
This year, Africa House is collaborating with the Pax Technologica initiative and will host hip-hop artist will.i.am, who has also invested in technology. This initiative aligns with the central theme of the upcoming WEF sessions, which suggest that technology will occupy a significant role in the discussions.
Toure believes a key lesson gleaned from recent global disruptions is that Africans must take control of their destinies. In a world of increasing instability and shifting power dynamics, Africa must recognize that it can no longer rely on antiquated systems and conventional methods. For instance, he points out that Africans residing abroad send nearly $100 billion back home each year, exceeding aid from governments and multilateral organizations from developed nations. Thus, Africa must explore new ways to leverage its vast assets to nurture prosperity rather than depending on external support.
Reconsidering the Continent
Among the focal points will be an examination of the negative stereotypes surrounding Africa that can deter investors and result in a risk premium for African borrowers. Toure is deeply troubled by this issue and has organized a dedicated session to address it.
“We are inviting media leaders from Africa and beyond to partake in this dialogue. Sadly, perception shapes reality, and risk is fundamentally perceived.”
While Africa demonstrates default rates that are lower than those of other continents, it still faces challenges in securing financing for infrastructure projects. Toure proposes that a solution may involve pursuing local currency financing, which he believes would “reduce exposure to currency fluctuations.”
Africa 2.0 prides itself on being more than just a think tank that produces reports and advocates for policies; it actively seeks to implement its ideas, and Africa House is a pivotal part of that mission. Toure points out that previous events have successfully united continental leaders and business figures, leading to valuable partnerships, many of which have generated concrete outcomes.
However, he acknowledges that success largely depends on the participants involved, rather than Africa House, which merely acts as a facilitator of these collaborations.
“We coordinate, we facilitate, we encourage, and we guide toward a common goal. Our role is to ensure that Africa’s voice and perspectives are acknowledged on the global stage. However, we allow the stakeholders to define the path for Africa’s future. Our experience has shown that when processes become overly centralized, progress halts.”
Natural Wealth
In at least one arena, Toure is a direct participant.
“Africa’s natural resources are valued at over $100 trillion. Innovative models utilizing Web3, blockchain technology, and artificial intelligence can facilitate the tokenization of these assets,” he says.
Toure believes that technologies like tokens can help in monetizing and enhancing the value of Africa’s resources.
Escaping from conventional approaches is a recurring theme for Toure. Whether in financing the continent, generating employment, or leveraging its assets, he passionately advocates for new methodologies and the vision that Africa House can incubate these ideas. He asserts that the upcoming 2025 event will herald many of these new strategies, with groundbreaking announcements at Africa House, including innovative technology and investment partnerships, Toure hints.
“This is where Africa House aims to differentiate itself from many other platforms,” he concludes.
