Can Africa buck the recession...

seen as an alternative to Western interference, to help speed up infrastructure development. But Ramesh points out three problems with this approach: 1) the Chinese can bring in low-quality companies with exploitative practices; 2) in some cases they’ve built low-quality infrastructure that doesn’t last; and, 3) the Chinese are seen as unscrupulous negotiators with African leaders – which means that rather than the investment helping to build and strengthen African economies, they can be left the poorer.

Finally, and perhaps most importantly, Africa needs to diversify beyond resource extraction with minimal processing. This is the best long-term defence against deep and prolonged recessions, as it not only hedges varied value offerings, but also creates value-added differentiators that make those offerings indispensable in the global market.

While many countries have already identified these fundamental reforms as critical, there is something of a lag in implementation. This would have to change. The stark truth is that without the political will and the business savvy to make these reforms a reality – and quickly – Africa’s green shoots will likely wither and die, and the coming global recession will engulf us all.

Rajneesh Narula is the director of the Dunning Africa Centre and Jon Foster Pedley is the dean and director of Henley Business School, Africa, and the chair of the Association of African Business Schools. This article is based on a recent webinar hosted by the Dunning Africa Centre

First published on November 23, 2022 in African Business