This article was created with the support of the African Corporate Council
Despite decades of commitment, Africa has struggled to maintain rapid and inclusive growth, but demographic changes and Africa's Continental Free Trade Area (AFCFTA) may provide a real turning point. However, given the continent's resources, the youthful demographics and growing interest in unfolding from AFCFTA as the world's largest single market, it seems right that the continent will gain momentum and finally embark on a period of accelerated growth. However, converting this possibility into reality requires harmony of local regulations, improved capital mobilization, and high levels of cross-border collaboration.
A more coordinated, practical approach is essential to transforming Africa's demographic and resource benefits into faster and more inclusive growth.
Participants in the Roundtable from both the private sector and many public African institutions agreed that the private sector is a key actor in the continental development narrative and willing to step into this role.
As an example of the role the private sector can play, the Roundtable heard excerpts from a new study by the Coca-Cola Africa System released during the US Africa Business Summit.
In 2024, the Coca-Cola System raised 83% of its procurement from local suppliers and local value chains, generating $10.4 billion in economic activity across 54 African markets through its value chain, supporting more than 1 million jobs. In short, the impact of the Coca-Cola system on the local economy is an example of how international brands and local players have a deep, positive impact on local economic activity.
What the private sector needs is a “predictable policy framework that is locally relevant, evidence-based and fosters trade and investment.” In this context, the AFCFTA can “play a transformative role in building resilient ecosystems that can unleash job creation and growth and supply chain opportunities.”
A favorable business environment
Without discussing the importance of tax policy, the head of an international nonprofit argued that in order to achieve a higher tax return, the economy must first grow. “Investment leads to employment, and these two people bring in revenue. Only then will they have the money to spend on development,” he argued. Africa is well suited to benefit from such a noble cycle, as its demographic and economic indicators point in the right direction. But it needs to be wise to reform and policy and avoid counter-effective measures.
Furthermore, it is important to make it easier to pay and collect taxes to avoid abuse. Digitalization offers a unique opportunity to improve compliance, reduce leaks, formalize the economy and expand financial inclusion.
To improve the business environment, the government does not compete for fees, but rather works to cut red tape, suggesting, “how long it takes to allow new factories to be built.”
The United Arab Emirates said it was “an example of a country that has achieved this by assessing how effectively ministers reduce bureaucratic processes.” South Africa's revenue services were also praised for moving towards a more collaborative approach that was delivering better results.
Morocco is also considered a success story in this regard, developing a very strong industrial base, particularly in the automotive and aviation sector. Many of these companies are expanding across borders, mainly towards West Africa.
However, although there has been considerable progress in terms of cross-border trade, the volume of intra-African trade remains dangerous, with only 15% of the continental trade carried out in other African countries at 58% in Europe and 68% in Asia. “Africa must trust Africa,” urged African companies to be encouraged to exchange more with each other, another panelist .
In addition, increasing regional trade requires integrating the local ecosystem, along with efforts to promote “generated in Africa,” boost production and fix broken logistics systems.
Morocco's success is also the result of empowering the private sector through reform, trust and true partnerships between the public and private sectors, where we listen and listen to each other's concerns.
Participants representing the private sector of the aviation industry reflected this sentiment, building national and trust in Africa, sharing best practices, and seeking greater communication in line with development goals. “It's one of the things we need to accelerate and grow in Africa,” he said.
The importance of public-private partnerships that could have real impact was greatly emphasized. This trust still needs to be strengthened.
Small businesses are important for local supply chains and job creation, for example, the US supported $1.7 billion in 2024, with a total of $7 billion in transactions that year.
A senior investment advisor said that while the government often views major investment announcements as the final step, it is only the beginning for investors. The government must also recognize that testimony from fellow investors is a stronger persuasive than formal guarantees. “Investors don't listen to you. They listen to each other,” he pointed out.
Not all growth is good
The head of Africa, a US-based think tank, said, “As the continent requires rapid, sustainable and widespread growth, there must also be an interest in growth quality. This is important for private sector revenues, and it is important for government and social and political stability.”
To achieve this, targeted investments are required in “trading sectors” such as agriculture and manufacturing, as opposed to sectors such as telecoms and services, such as fast-growing but employment-intensive sectors.
To ensure the coming headwinds, she calls for greater access to international markets and warns that an increase in global protectionism could potentially undermine Africa's trade outlook.
The head of the local economic community said, “It is the private sector that can really establish a common market.” The lack of harmony between laws and regulations across member states remains an important obstacle to reducing cross-border investment and trade. In response, local leaders have adopted a roadmap for legal and procedural harmony with a July 2026 deadline.
For the continent to achieve its goal, the head of the energy company said, “The business environment in Africa must be very competitive. A stable and predictable business environment is essential.”
Key takeout
The Round Table, which brought together leaders from various sectors in Africa and was complemented by foreign-based organisational heads, was a fierce study of the main benefits of the continent and why it has not succeeded in maintaining sustained growth and development so far.
Following the evidence-based analysis, several solutions have been proposed, including the establishment of a predictable and transparent regulatory framework, competitive tax systems, and more robust public-private partnerships to unlock long-term investments.
The panelists emphasized that economic growth is also inclusive, creating meaningful employment and poverty must be reduced to maintain social equilibrium.
Among panelists there was a consensus that improving governance and tax management, strengthening regional integration, and regulation of harmony were key to the success of the AFCFTA and the realization of the continent's broader economic goals.
The discussion took place under Chatham House rules, so participants are free to use the information they receive, but they cannot disclose the speaker's identity or partnership.
