Bridging Africa’s economic horizons in 2025: Broader strategic perspectives

By Maurice Okoli

African continent to a very great degree is rich in natural resources encompassing a wide range of both renewable and non-renewable assets. Africa is home to some 30 percent of the world minerals, eight percent of the world natural gas and 12 percent of the world oil reserves. The continent has 40 percent of the world’s gold and up to 90 percent of its chromium and platinum. The largest reserves of cobalt, diamond and uranium in the world are in Africa. It holds 65 percent of the world’s arable land and ten percent of the planet internal renewable fresh water source. For decades, Africa with its vast untapped natural resources has been the world’s geographical region of attention and priority, attracting various global players from all over the world for economic and political engagement.
In a quick assessment, China has emerged as the most powerful player with its geopolitical clout and leadership in fostering multifaceted economic growth. These can be interpreted differently and from different perspectives, and its unequivocal implications are also varied in terms of the current Africa’s transformations and future directions.
For Africa’s future pathway, the year 2025 could perhaps be set as another distinctive new chapter of a strategic qualitative development and push for a significant growth. The conditions for this expected growth could be linked to the fact that continental organization African Union will install a new leadership in February 2025, South Africa chairs the G20, Commonwealth Secretariat and World Trade Organization are headed by two African women, a Ghanaian and a Nigerian citizens. These resounding organizational features, at least, makes 2025 an African year to facilitate investment and economic development opportunities, and through wide multilateral collaborations, both external investors and stakeholders, for remarkable changes.
(i) Kenya’s AUC leadership: As well-known, four candidates have slated for the February 2025 polls. Raila Odinga will face off with Djibouti’s Mohamoud Youssouf, Anil Gayan (Mauritius) and Richard Randriamandrato (Madagascar) for the African Union Commission chairmanship in the race to succeed the outgoing chairman Moussa Faki of Chad. The latest development monitored for this article explicitly showed that Kenya’s candidate for the Africa Union Commission chairmanship Raila Odinga, highlighted his priorities and strategies to include enhancing intra-African trade by establishing a common market, implement a broader economic transformation, strengthening regional integration and cooperation, and peace and security.
Undoubtedly, the African Union (AU) is a critical institution for promoting unity, peace, and development across the continent. However, there is a growing consensus that it requires reforms to increase its effectiveness, efficiency, and relevance in addressing Africa’s challenges. Here are reasons why reforms are necessary:
Structural and Institutional Weaknesses: The AU has been criticized for its slow decision-making processes and lack of streamlined operations. The relationship between the AU and Regional Economic Communities (RECs) is often unclear, leading to duplication of efforts and fragmented initiatives.
Financial Dependence: Over 60% of the AU’s budget comes from external donors, raising concerns about the organization’s independence and ability to prioritize African-led solutions. Worse, many member states have unsuccessfully been in position to meet promptly their financial obligations, hindering the AU’s ability to execute its programs effectively. This most often reflected on the limited success in peacekeeping: Despite efforts, the AU has struggled to resolve protracted conflicts in regions like the Sahel, Somalia, and the Great Lakes.
Geopolitical and Global Challenges: Adapting to a changing world, with shifts in global power dynamics, the AU must reform to ensure Africa’s interests are adequately represented on the global stage.
Lack of Accountability and Governance: There have been concerns over deep-seated corruption. Internal mismanagement and corruption have undermined the credibility of the AU. There is a need for stronger accountability mechanisms to ensure compliance with AU protocols and charters by member states.
Raila Odinga’s tremendous political experience and pan-African vision unreservedly underscored the unwavering commitment for reforms as potential steps to advance the basic objectives of uplifting the economic status of the continent under the banner “Africa We Want” incorporated into the Agenda 2063.
Kagame Report (2017): Spearheaded by Rwandan President Paul Kagame, this initiative proposed actionable reforms to address structural inefficiencies and financial sustainability. Efforts to reduce the number of AU departments and improve coordination among stakeholders. Reforming the African Union is essential for building a stronger, more unified Africa capable of addressing its internal challenges and asserting its position on the global stage.
As frequently reiterated, Africa with its huge human and natural resources can take its rightful position in the current 21st century in the world. But for the realization of this, Africa still have to coordinate with Commonwealth Secretariat, WTO, G20 and BRICS in promoting industrialization, supporting manufacturing, and enhancing innovation through investments in education, technology, healthcare, affordable energy and skills development. These invariantly fall within the Africa’s Agenda 2063.
(ii) South Africa’s G20 chairmanship: South Africa is now the biggest economy in Africa, with a GDP of $373 billion in 2024. (World Statistics) In addition to its economic prominence in Africa, South Africa is a staunch member of BRICS+ (Brazil, Russia, India, China and South Africa), an informal association joined by Egypt, Ethiopia, Iran and United Arab Emirates.
On one hand, it is important to mention here the role of South Africa as it takes the chairmanship the Group of 20 (G20) in 2025. It is an intergovernmental forum comprising 19 sovereign countries, the European Union (EU), and the African Union (AU). In 2023, during its summit, the African Union joined as its 21st member and was officially represented at the 2024 G20 summit in Brazil.
On the other hand, since its inception, the recurring themes covered by G20 summit participants have related in priority to global economic growth, international trade and financial market regulation – these are issues affecting Africa. South Africa could direct G20’s win-win influence in streamlining the beneficial economic sphere considered as key to Africa’s development and which would unprecedentedly impact on aspects of life of estimated 1.4 billion people in the 21st century.
With South Africa at the helm of G20 affairs, it is therefore paramount to seriously “re-evaluate” both the group and individual members relations with Africa. South Africa has a unique opportunity to influence the global agenda, especially in addressing the priorities of developing nations. Here are key actions South Africa should undertake:
Professor Maurice Okoli is an academic researcher and economist with a keen interest in current geopolitical changes and the emerging world order. he can be reached via email: markolconsult (at) gmail (dot) com.

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