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Africa’s Significance in Global Economy and the Challenges: An Overview

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Africa holds immense significance in the global economy due to several factors that contribute to its economic growth and potential. One significant factor is the thriving tourism sector in sub-Saharan Africa. Furthermore, sub-Saharan Africa outperformed all other regions in terms of tourist arrivals and revenues, surpassing global norms. For several economies, including Africa, the tourism sector offers ample gains. The tourism industry in Africa provides job opportunities, generates foreign exchange, reduces poverty and inequality, contributes to tax incomes for the government, and enhances physical infrastructure and human capital development. Additionally, Africa’s economy has undergone a significant transformation over the years.

The economic paradigm in numerous developing and emerging economies, including Africa, has shifted towards tourism as a means of contributing to economic development. Countries like South Africa have experienced a major shift in their economic, social, and political landscapes post-1994. Namibia is another country that has recognized the potential of tourism to drive economic growth.

Africa Continent produces many countries that have positioned their tourism sector for economic growth to benefit substantially, especially in sub-Saharan Africa (source: United Nations World Tourism Organization).

Tourism is not the only booming economic sector in Africa. Other emerging industries such as technology, agriculture, and manufacturing have also gained prominence in the region.

Additionally, Africa’s natural resources, including oil, gas, minerals, and agricultural products, play a crucial role in the global economy. Moreover, Africa’s natural resources, including oil, gas, minerals, and agricultural products, play a crucial role in the global economy. The development and utilization of these resources contribute to Africa’s economic growth and make it an important player in the global market. Demand for these resources from both developed and emerging economies continues to drive economic activity in Africa, creating jobs and stimulating growth.

IT Sector has also emerged as a significant contributor to Africa’s economy. With the rapid advancement of technology and increasing connectivity, Africa’s IT sector has experienced significant growth and has emerged as a major contributor to the continent’s economy. Skilled labor and technology hubs have been established in countries like Kenya, Nigeria, and South Africa.

Sports, like football and rugby, have also become significant contributors to the African economy. As Africa continues to gain recognition for its economic potential, the sports industry has emerged as another significant contributor to the continent’s economy. Most African players have made a mark on the global stage, playing in top leagues and clubs around the world. The combination of these factors makes Africa a significant player in the global economy.

Furthermore, Africa’s growing population presents a significant opportunity for the global economy. As a continent with the fastest-growing population, Africa’s demographic dividend has the potential to fuel economic growth and drive consumer demand. Additionally, Africa’s strategic location is another factor that contributes to its significance in the global economy. Influence of Europe and Asia, Africa acts as a bridge between these continents and serves as a gateway for trade and investment.

Investment Opportunities in Africa

Investment opportunities in Africa are abundant and varied, ranging from natural resources to infrastructure development. Africa’s vast reserves of natural resources, including oil, gas, minerals, and agricultural land, make it an attractive destination for foreign investors. Furthermore, the need for infrastructure development presents significant investment opportunities.

The construction of roads, railways, ports, and power plants is essential to support Africa’s economic growth and to establish efficient trade routes within the continent. Foreign direct investment in Africa has been on the rise in recent years, as countries recognize the potential for high returns on investment. Investing in Africa offers the potential for long-term growth and profitability.

Investors from Asia, particularly China and India, have been leading the way in terms of investment in Africa. They have recognized the vast potential and opportunities that Africa offers, and have actively engaged in various sectors such as agriculture, banking, telecommunications, infrastructure, retail, and manufacturing.

These investments not only contribute to Africa’s economic development but also foster strong partnerships and collaborations between African countries and the investing nations. The increasing inflow of foreign direct investment into Africa has not only strengthened its economy but also opened up opportunities for technology transfer, job creation, and skills development.

Despite vast opportunities and potential in Africa, some challenges need to be addressed for sustainable economic growth.

Challenges

One of the major challenges is the need for improved governance and transparency. Investors often face concerns about political stability, corruption, and weak governance in certain African countries. These factors can create uncertainties and risks that may deter potential investors. Additionally, poor infrastructure is another challenge that investors encounter in Africa. Inadequate transportation networks, unreliable power supply, and limited access to basic services can hinder investment and economic growth.

The lack of skilled labor in Africa is a significant challenge that needs to be addressed to fully harness the continent’s economic potential. Education and skills development are crucial in addressing this challenge and ensuring that Africa can fully utilize its abundant resources and opportunities. Africa’s significant role in the global economy can be attributed to various factors. The literacy rate of the African Continent has been rising steadily over the years, paving the way for a more educated and skilled workforce.

If these can be overcome, Africa has the potential to become a major player in the global economy. The question is will the rest of the world recognize and seize the opportunities that Africa presents? and embrace the potential for mutually beneficial partnerships.

Afro Asia News will continue to closely follow and report on the developments happening in Africa’s economy and how Asia is actively engaging with the continent.

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China-India ties at 75: ‘Dragon-Elephant Tango’ will benefit both

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diplomatic relations

BEIJING, CHINA – Media OutReach Newswire – 3 April 2025 – CGTN published an article on China-India relations as the two Asian neighbors celebrate the 75th anniversary of the establishment of diplomatic relations, exploring the bilateral cooperation and exchanges and emphasizing why working together will benefit both countries, the region and the world.
China and India celebrated the 75th anniversary of the establishment of diplomatic relations on Tuesday with mutual congratulatory messages from their leaders.

In his message to Indian President Droupadi Murmu, Chinese President Xi Jinping described China-India ties as the “Dragon-Elephant Tango,” symbolizing a harmonious partnership between the countries’ emblematic animals. He noted that realizing the “Dragon-Elephant Tango” is the right choice for the two sides, as it serves the fundamental interests of both countries and their peoples.

China-India relations have made positive strides over the past year. Last October, President Xi and Indian Prime Minister Narendra Modi met in Kazan, Russia, signaling a new phase of engagement. Since then, both sides have worked to implement the important consensus reached by the two leaders, strengthening exchanges at various levels and achieving a series of positive outcomes.

‘Partners of mutual achievement’

Noting that China and India, as ancient civilizations, major developing countries and important members of the Global South, are both at a critical stage of their respective modernization efforts, Xi called on the two sides to be partners of mutual achievement.

In an interview with CGTN, Harsh Pant, vice president for Studies and Foreign Policy at the leading Indian think tank Observer Research Foundation, pointed out that the two major economies should engage with each other much more substantively on economic matters amid simmering global trade tensions.

“If they continue to work according to the principles of free and open global trade, I think that can inspire other countries to do the same,” he noted.

He added the cooperation between the two sides could bring long-term sustainability to the current global economic order.

China reclaimed its position as India’s top trading partner last year, surpassing the United States after a two-year gap, according to the latest report from the Global Trade Research Initiative. Bilateral trade between the two Asian giants reached $118.4 billion in 2024, reflecting a four-percent increase from $113.8 billion in 2023.

Both countries have leveraged their strengths in technology and production. While China remains a vital supplier of industrial goods such as electronics, machinery and chemicals, it imports pharmaceuticals, agricultural products and software services from India.

Beyond trade, cultural exchanges have also played a vital role in strengthening ties. In January, China and India agreed to resume direct passenger flights and take steps to facilitate travel and journalist exchanges.

In the first quarter of this year, around 70,000 visas were issued, representing about a 15-percent year-on-year increase, according to Chinese Ambassador to India Xu Feihong.

‘Sound, steady development’ of ties

President Xi called on both sides to enhance strategic mutual trust, strengthen exchanges and cooperation in various fields, deepen communication and coordination in major international affairs, jointly safeguard peace and tranquility in the China-India border area, promote a sound and steady development of bilateral relations, and contribute to world peace and prosperity.

In a recent interview, Modi emphasized the need to strengthen ties with China despite past tensions, advocating dialogue over discord and cooperation over conflict.

Recent months saw frequent exchanges between the two sides at all levels. Chinese Foreign Minister Wang Yi and Indian External Affairs Minister Subrahmanyam Jaishankar met several times at multilateral events. The two countries held the 23rd meeting of Special Representatives for China-India Boundary Question in Beijing in December, 2024, as well as China-India Vice Foreign Minister-Foreign Secretary Dialogue in January, reaching broad consensus on bilateral relations, practical cooperation, and boundary issues.

Ambassador Xu noted that such frequent and constructive interactions have been rare in recent years, signaling that China-India relations are at a crucial stage of improvement and development. Moving forward, both sides will need to further overcome obstacles, remove disruptions, and take proactive steps to sustain and build on this positive momentum, he said.

https://news.cgtn.com/news/2025-04-02/Why-realizing-Dragon-Elephant-Tango-is-right-choice-for-China-India-1Cf7KsMpJiU/p.html

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Centurion Law Group (CLG) Granted CEMAC Tax Accreditation, Reinforcing Position as Regional Legal Partner

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Centurion Law Group

As the CEMAC region pursues accelerated growth across its oil, gas and mining industries, CLG’s accreditation will strengthen its position as a partner for multinational companies active across the region

SANDTON, South Africa, April 3, 2025/APO Group/ –Legal, tax and business advisory conglomerate CLG (www.CLGGlobal.com) – formerly Centurion Law Group – has officially been approved as a Central African Economic and Monetary Community (CEMAC) tax advisor by the CEMAC Standing Committee on Fiscal and Accounting Harmonization. CLG Tax and Legal will provide its full suite of tax services across all CEMAC member countries, supporting business and transactions across various strategic fields, including oil, gas and mining.

The tax certification not only comes as part of a broader restructuring of CLG’s tax and legal services offerings, aimed at positioning the firm to better serve clients throughout the region with integrated solutions, but as the CEMAC region pursues accelerated growth across its strategic economic sectors. Specifically, the region’s oil and gas sector is on track for rapid growth, as nations implement ambitious production targets. The Republic of Congo aims to produce 500,000 barrels per day (bpd) by 2027; Gabon targets 220,000 bpd in the short-term; while Equatorial Guinea and Cameroon are scaling-up gas monetization. These targets require significant levels of investment and CLG stands ready to support transactions and broader economic growth.

Given the potential of the CEMAC region’s natural and mineral resources, project developers and investors have already begun to expand their presence across the region. In the Republic of Congo, TotalEnergies is investing $600 million in the Moho Nord project; Trident Energy recently acquired stakes in the Nkossa, Nsoko II, Lianzi and Moho-Bilondo fields; while Perenco increased production at the Tchibouela II and Tchendo II fields following a $30 million investment. In Gabon, wildcat drilling is underway on Blocks BC-9 and BCD-10 while Perenco advances the $1 billion Cap Lopez LNG terminal toward a 2026 start. In Equatorial Guinea, the country is preparing to launch an oil and gas licensing round while Cameroon drives a gas-to-industry agenda. Further developments in Chad are underway, highlighting the region’s potential as a major producing hub.

The CEMAC accreditation aligns with our strategy to support impactful transactions in Africa and we look forward to strengthening our presence across the continent

Stepping into this picture, CLG’s accreditation will serve to further support current and future transactions. Over the past decade, CLG has significantly grown its tax practice, providing comprehensive tax advisory and compliance services to numerous multinational companies operating across Africa. This sustained growth reflects CLG’s commitment to meeting the complex tax needs of investors and businesses on the continent, from corporate tax planning and regulatory compliance to cross-border taxation strategies.

“By bolstering our tax practice in the CEMAC region, CLG continues to establish itself as a one-stop-shop for investors in the region and across the continent. The CEMAC accreditation aligns with our strategy to support impactful transactions in Africa and we look forward to strengthening our presence across the continent,” stated Zion Adeoye, CEO and Managing Partner of CLG.

CLG already has a strong presence in Africa, with offices in South Africa, Nigeria, Mauritius, Ghana, the Republic of Congo, Cameroon, Equatorial Guinea, Namibia and South Sudan. The company caters to a diverse portfolio of multinational companies operating globally, delivering bespoke solutions tailored to address the unique challenges and complexities faced by clients in different industries. CLG’s expertise covers energy, infrastructure, mining, agriculture and ESG, to name a few. For the CEMAC region, CLG’s extensive network and growing expertise positions the firm as strategic partner for regional and global firms. As companies expand their presence across the region, CLG’s agile, integrated approach – underpinned by its local roots and depth of experience – demonstrates the rising prominence of African advisory firms on the global stage. The CEMAC tax certification not only expands CLG’s regional service coverage but also solidifies its reputation as a trusted partner for businesses navigating Central Africa’s evolving tax landscape.

“CLG’s deep understanding of its clients’ businesses, collaborative approach with local authorities, multinational orientation and highly experienced local teams are some of the factors that set our tax practice apart in the region,” stated Daoudou Mohammed, CLG Tax and Legal Director.

Distributed by APO Group on behalf of CLG

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Emerging Markets-Focused Fintech Platform PalmPay Unveils New Debit Card in Nigeria with Verve

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PalmPay

The new PalmPay Debit Card brings advanced features such as savings yield on deposits and merchant rewards within reach for mass market users in Nigeria

LAGOS, Nigeria, April 3, 2025/APO Group/ –PalmPay (www.PalmPay.com), a leading digital bank and fintech platform focused on emerging markets, has launched the PalmPay Debit Card in Nigeria in partnership with Verve, Africa’s largest domestic card scheme.

The launch of its debit card represents a key milestone in PalmPay’s evolution – from a mobile wallet known for it’s fee-free transfers and cashback rewards into a full-service digital banking platform offering an integrated ecosystem for payments, savings, credit, insurance, and now, card access.

The new PalmPay Debit Card brings advanced features such as savings yield on deposits and merchant rewards within reach for mass market users in Nigeria. With zero maintenance fees, a simple in-app application process, and nationwide delivery, PalmPay aims to convert millions of its 35 million users to become cardholders this year. The card is accepted at all merchants in the Verve network, and supports both debit and contactless transactions.

“This launch is another step forward in our mission to deliver accessible, reliable and rewarding financial services.“ said Sofia Zab, Chief Marketing Officer at PalmPay. “With the PalmPay Debit Card, we are expanding our ecosystem and enabling our users to pay and earn rewards at even more touch points, including across offline and online commerce. And for merchants, this opens up new opportunities to reach millions of Nigerian digital consumers and collaborate with us to build reward-driven experiences that boost loyalty and sales.”

Alongside the standard debit card, PalmPay is also rolling out PalmPay Premium, a new reward scheme and card designed for high-volume users. It offers enhanced perks such as priority support, advanced financial tools, and exclusive merchant benefits.

With the PalmPay Debit Card, we are expanding our ecosystem and enabling our users to pay and earn rewards at even more touch points, including across offline and online commerce

With over 35 million users and a growing network of 1.1 million agents and merchants in Nigeria – and operations in Tanzania, Ghana, and Bangladesh – PalmPay is building a next-generation financial ecosystem designed to empower consumers and businesses in emerging markets. PalmPay processes up to 15 million transactions daily, underscoring the scale and reliability of its platform.

In addition to its digital banking services, PalmPay provides a suite of B2B offerings for local MSMEs and international merchants, including:

  • Smart POS terminals and a business app
  • Payment orchestration and checkout solutions
  • Bulk payment tools via a self-service merchant portal
  • APIs for embedding and reselling PalmPay’s services
  • Direct integration of services into the PalmPay consumer and business apps

 

“At PalmPay, we believe that building a thriving digital economy requires collaboration. From lending and insurance providers to card schemes like Verve, our ecosystem is powered by strategic partnerships.”, said Jiapei Yan, Chief Commercial Officer of PalmPay. “The launch of our debit card is another example of how we are combining cutting-edge technology with our partner strengths to deliver inclusive financial services at scale – and in doing so we empower businesses targeting Africa to grow faster, reach more customers and unlock more revenue streams.”

Vincent Ogbunude, Managing Director of Verve International, added: “We are proud to partner with PalmPay on this important milestone. Our alliance reflects our shared mission of accelerating financial inclusion and delivering payment innovation that meets the needs of African consumers.”

From zero-fee transfers and high-yield savings to instant credit, insurance, and now cards, PalmPay is redefining what digital banking in emerging markets can look like – personalised, comprehensive, and accessible to everyone.

As international businesses seek entry into Africa’s dynamic digital economy, PalmPay offers a trusted platform with the infrastructure, user base, and reach to help them scale.

Distributed by APO Group on behalf of PalmPay

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