{"id":40603,"date":"2023-12-29T11:01:00","date_gmt":"2023-12-29T16:01:00","guid":{"rendered":"https:\/\/mascolombia.com\/africas-economy-whats-next-for-the-cradle-of-humanity\/"},"modified":"2023-12-29T11:01:00","modified_gmt":"2023-12-29T16:01:00","slug":"africas-economy-whats-next-for-the-cradle-of-humanity","status":"publish","type":"post","link":"https:\/\/mascolombia.com\/en\/africas-economy-whats-next-for-the-cradle-of-humanity\/","title":{"rendered":"Africa\u2019s economy: what\u2019s next for the cradle of humanity?"},"content":{"rendered":"\n

The role that Africa\u2019s economy will play in geopolitics in the coming years cannot be underestimated. The African continent has 1.3 billion people, one-sixth of the world\u2019s population, and has 54 votes in the United Nations, according to the organization itself.<\/p>\n\n\n\n

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You may read: Exporting regions in Colombia continue to grow<\/strong><\/a><\/p>\n<\/blockquote>\n\n\n\n

The strengths of Africa\u2019s economy include fossil fuel reserves, strategic minerals, an economically active population and great potential for energy transition.<\/p>\n\n\n\n

Fossil fuels in Africa\u2019s economy<\/h2>\n\n\n\n

Africa has almost 10% of the world\u2019s proven natural gas reserves, with 18 trillion cubic meters in 2020. The country with the largest reserves is Nigeria, which has 31% of the gas in African territory, i.e. 5.5 trillion cubic meters.<\/p>\n\n\n\n

It is followed by Algeria with gas reserves of 4.5 trillion cubic meters, 25%, and Mozambique, which has 2.8 trillion cubic meters, 16% of the African total, according to CIA Factbook figures.<\/p>\n\n\n\n

\"Africa\u2019s
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In terms of oil reserves, Africa holds 8% of the world\u2019s total.<\/strong> That is to say, it concentrates 127,291 million barrels of the 1.6 trillion barrels that the world has.<\/p>\n\n\n\n

In addition, 10 African countries are in the top 40 oil producers, according to Statista.<\/p>\n\n\n\n

Libya has 38% of African reserves with 48,360 million barrels. In oil reserves, within Africa\u2019s economy, Nigeria follows with 29% of reserves, 37.449 billion barrels, and Algeria, with 9%, has 12.199 billion barrels, according to CIA Factbook data with 2020 information.<\/p>\n\n\n\n

Africa\u2019s economy is a major source of minerals<\/h2>\n\n\n\n

The African continent has 30% of the world\u2019s mineral reserves, according to the EFE agency. Gold stands out, accounting for 40% of world stocks, and four countries in Africa\u2019s economy are among the top 15 gold producers in the world.<\/p>\n\n\n\n

Africa\u2019s economy is also important for its reserves of so-called \u201ccritical materials\u201d, a group of minerals whose stocks have a very specific and limited geographic location.<\/p>\n\n\n\n

To give a few examples, Congo has 70% of the world\u2019s cobalt (used for rechargeable batteries); South Africa has 36% of manganese and 89% of iridium; and Mozambique 13% of graphite, according to the International Renewable Energy Agency.<\/p>\n\n\n\n

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People are one of the strengths of Africa\u2019s economy<\/h2>\n\n\n\n

Africa\u2019s population is currently young. According to the United Nations (UN), 70% of the continent\u2019s people are under 30 years old and, according to the European news portal Atalayar, in the next 20 years Africa will be the continent with the largest population between 20 and 40 years old.<\/strong><\/p>\n\n\n\n

Thus, by 2033 Africa\u2019s economy will have the largest number of economically active people among all continents, according to UN projections.<\/p>\n\n\n\n

According to researcher Monica Amador, from the University of Bristol in the United Kingdom, in 2033 \u201cthere will be more people of working age in Africa than in China and India\u201d.<\/p>\n\n\n\n

By 2050, one in four of the world\u2019s inhabitants will be in Africa, and by 2100, five of the world\u2019s ten most populous nations will be African, according to the Atalayar portal. It is expected that 80% of this population will reside in urban areas.<\/p>\n\n\n\n

Africa\u2019s economy has potential, but no support for energy transition<\/h2>\n\n\n\n

In addition to strategic minerals, Africa\u2019s economy has great potential for energy transition.<\/p>\n\n\n\n

According to Monica Amador, the continent has the potential to produce 40% of the world\u2019s solar energy and is expected to \u201cproduce 10% of wind energy by 2050\u201d.<\/p>\n\n\n\n

What has prevented Africa\u2019s economy from deploying its full capabilities is the lack of international support. According to the United Nations, between 2000 and 2020 only \u201c2% of global investment in renewable energy went to Africa\u201d.<\/p>\n\n\n\n

Africa has an annual financing gap of USD $90 billion to meet its energy transition goals, according to 2022 data from the African Union (the umbrella body for African countries).<\/p>\n\n\n\n

For Enrique Daza, director of Cedetrabajo, this situation is part of the global hegemonic model in which underdeveloped countries provide raw materials to advanced economies without receiving fair compensation.<\/p>\n\n\n\n

\u201cAfrica\u2019s economy has been subordinated to the interests of Europe, the clearest example being the 14 countries that are tied to the euro with the African financial community\u2019s franc\u201d, explains Daza.<\/p>\n\n\n\n

Although international aid is insufficient, the African continent has increased its relations. According to The Economist, from 2010 to 2016, more than 320 embassies were opened in Africa, which represents the highest number of embassy creation in less than a decade in all of history.<\/p>\n\n\n\n

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