Negatu: Trump 2.0 a wake up call for Africa to focus on domestic revenue generation

Africa, with its vast potential, continues to face challenges in attracting foreign direct investment, with only $94 billion recorded for 54 countries last year, despite trillions in global investable capital. The continent's fragmented markets, where just five nations contribute to half of its GDP, underscore the urgent need for improved collaboration and the full implementation of the African Continental Free Trade Area (AfCFTA) to enhance economic integration. CNBC Africa's Flora Limukii recently interviewed Zemedeneh Negatu, Global Chairman for Fairfax Africa Fund, to shed light on the critical issues facing Africa in the global economic landscape. Negatu emphasized the importance of Africa's natural resources and the potential to drive the global economy by positioning the continent strategically in various industries such as electric vehicles and technology. He noted that American aid to Africa may be reshaped under President Trump's America First policy, urging African nations to focus on domestic revenue generation and strengthen their financial institutions and manufacturing bases. Negatu highlighted the importance of leveraging Africa's demographic advantages, such as a young and talented population, to capitalize on the evolving technology revolution. He called for a shift towards nurturing job creators and improving the ease of doing business, especially in the digital economy. The interview emphasized the need for African leaders to rethink their approach to economic growth and trade partnerships in a rapidly changing global environment. Negatu's insights serve as a clarion call for Africa to seize its potential and play a significant role in the evolving global economy, despite the challenges posed by shifting political landscapes and economic priorities.