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Economist, a Best-Selling Author and the Founding CEO of Guepard Group, Abdelmalek Alaoui shared his insights on Africa at the latest Budapest Lecture. He challenged common misconceptions about Africa, emphasizing the continent’s diversity and dynamic development. He highlighted that the term "Africa" itself is often misunderstood, as it does not represent a homogenous entity but rather a collection of nations with unique identities, cultures, and economies. Alaoui pointed out that in today's polarized world, Africa plays a crucial role in global economics and politics, particularly as a site of increasing strategic competition between global powers.
He underscored Africa’s economic significance, noting that it is the largest continent with a rapidly growing market. Over 500 million people have been lifted out of poverty, making Africa an essential player in the global economy. He argued that middle powers have a vested interest in fostering economic growth and that Africa has become a key battleground in the geopolitical proxy wars between the East and the West. The continent's wealth in resources, including cheap oil, gas, and rare materials, makes it indispensable for global supply chains. With a $2 trillion economy, Africa is no longer just a recipient of aid but an emerging economic force.
Alaoui outlined three key conditions for successful engagement with Africa. First, he stressed the importance of balancing perspectives on Africa, warning that outdated views would hinder success. Second, he emphasized that Africa is constantly evolving and that businesses and investors must keep up with these changes. Third, he called for long-term commitment, noting that meaningful investment in Africa requires dedication and strategic planning. He also highlighted the importance of early engagement, stating that those who act quickly in connecting with emerging African economies will have a competitive advantage.
One of the most pressing issues for Europe is migration, and Alaoui argued that Africa could play a vital role in addressing this challenge. He discussed both positive and negative potential futures for Africa. He acknowledged that Africa has historically been the least integrated continent, with limited inter-African trade. However, this is changing as trade between French-speaking and English-speaking African nations is increasing, strengthening economic ties.
On the other hand, he warned that if the global community continues to apply double standards when dealing with Africa, it could hinder progress. He emphasized the need to change the narrative around Africa, moving away from outdated stereotypes and recognizing the continent’s growing economic and political influence.
Alaoui highlighted Africa’s growing industrial capacity, using Morocco as an example. In 2002, Morocco produced only 15,000 cars annually, but by 2022, it was exporting one million cars, demonstrating the rapid development of manufacturing capabilities. He pointed out that Africa has a strong labor force, making it an ideal location for industries that require significant manual work, such as shoemaking and other manufacturing sectors.
Investment in energy-intensive industries is also crucial, given Africa’s resource wealth. Furthermore, Alaoui emphasized that speed is a major advantage in Africa—businesses can accomplish projects much faster there compared to Europe, where bureaucratic hurdles often slow down investments. He remarked that due to excessive EU bureaucracy, it is currently "crazy" to invest in Europe.
Finally, he noted that Africa has a new generation of politicians who are driving change and modernization, making it an attractive destination for investors. The combination of political evolution, economic development, and resource availability makes Africa a key player in the global economy, offering significant opportunities for those willing to engage early and strategically.
