Africa needs to organise its domestic capital for economic growth - CNBC Africa

Africa needs to organise its domestic capital for economic growth

Western Africa

by Dara Rhodes 0

Africa's population is expected to double over the next forty years. PHOTO: Getty Images.

The World Economic Forum on Africa that ended on Friday themed, Forging Inclusive growth, creating jobs was aimed at addressing the issues about unemployment and inclusive growth many African countries face.

“I think it’s a great time for Nigeria, I mean for us to take centre stage, we are now the largest economy on the continent, I think it is also good for all of us to really reflect on what the true size of some of these domestic economies are,” Gachao Kiuna, CEO, Trans-Century told CNBC Africa.

Nigeria hosted the forum for the first time after the country recently rebased its GDP and Kiuna believes that in the past the opportunity in Africa was seen much more as an export opportunity but today, people are realising the size of the domestic market.

“Everybody sees the growth trajectory and everybody believes it but the question is how best to partake in it?”

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“In my opinion one of the very important things is really around the organisation of domestic capital and how that domestic capital starts to express itself and really behind that, you’ll start to see a lot of foreign capital,” he said.

Africa is expected to continue its growth trajectory in the coming years while most of the world is facing major political and economic uncertainty as the continent’s population is projected to double in the next forty years.  

“I think its fallacy to believe that investments will be purely foreign led, we really need to look at it such that we have a lot of strong domestic capital behind of which a good platform is built for foreign direct investments,” he explained.

Nonetheless, Kiuna believes that the domestic capital needs to be organised first for the continent’s Direct Foreign Investment to continue to rise as FDI’s alone can’t lead investments and create all the jobs.

“At the end of the day its not rocket science, I’ll say that if you look at the fundamentals of what is driving growth of the African economy, you know agriculture, wholesale retail trade, manufacturing, those have to play a part in driving job creation,” he concluded. 

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