Africa has opportunities to accelerate growth through digital technology, energy infrastructure and regional trade, but high debt, expensive oil and climate risks threaten to weaken the gains unless governments improve the use of public money, according to Pan-African Economist Dumebi Oluwole.
“African economies remain resilient. There are real opportunities ahead, but also risks that could slow progress if they are not managed,” Oluwole told DNE Africa.
Digital innovation is among the continent’s most promising areas, as expanding startup ecosystems and greater artificial intelligence adoption attract investor interest. Building stronger digital infrastructure could help African economies capture more of that investment, she said.
Climate finance offers another potential source of support, particularly for infrastructure and energy projects. But its impact will depend on whether funds reach their intended uses and strengthen long-term resilience.
Energy infrastructure is also central to the outlook. Nigeria’s Dangote refinery and the East African Crude Oil Pipeline linking Uganda and Tanzania illustrate the potential for investment in refining and cross-border energy systems. Renewable energy offers further room for expansion.
Deeper regional integration could broaden these opportunities. The African Continental Free Trade Area is intended to support trade across national borders, while infrastructure projects could improve connections between markets.
Oluwole cited the proposed Nigeria-Morocco gas pipeline, valued at about $25bn and backed by ECOWAS leaders in July 2026, as an example of the scale of ambition. The proposed route would run along the Atlantic coast through 13 countries.
Africa’s young population also represents a potential economic advantage, providing a growing labour force and a large market for technology, consumer goods and healthcare.
But these opportunities are emerging against a difficult near-term backdrop. Oil prices above $100 a barrel threaten to raise inflation, increase government spending pressures and squeeze households and businesses. An expected strong El Niño could add to risks for food supplies and public budgets.
Some countries are seeking to protect themselves against currency and inflation shocks by building gold reserves. Ghana is among those pursuing this approach, Oluwole said.
Governance remains another constraint. Corruption and restrictions surrounding elections can weaken institutions and impede policy implementation. Oluwole also pointed to the disconnect between ageing political leadership and Africa’s predominantly young populations.
Climate change compounds these vulnerabilities. Africa produces less than 4% of global carbon dioxide emissions but faces some of the heaviest consequences of climate change, leaving countries exposed to disruptions affecting agriculture, infrastructure and livelihoods.
Turning investment into sustained growth will require more than financing. Governments must ensure that borrowed money generates productive assets and stronger revenue rather than adding to debt without expanding economic capacity.
“The opportunities are real, but turning them into lasting development depends on better governance and disciplined use of public money,” Oluwole stressed.
She called for greater investment in healthcare, education and infrastructure, alongside efforts to increase the value of African commodities before export. Processing more resources domestically could raise trade revenues, improve external balances and generate foreign exchange.
The central question for African governments is whether they can convert investment, natural resources and demographic growth into more productive economies before another external shock narrows their room for manoeuvre.
