The African Development Tale in a Nutshell
At Economy Zero Group, we have the pleasure of providing you—our avid and dedicated readers—with thought-provoking pieces on a bi-weekly basis. As we continue to ponder on Africa’s development potential, it is important we briefly remind ourselves of some of the realities that Africa confronts, as well as the fate that awaits it. Put simply, Africa is concurrently wrestling with three paradoxes: the financial paradox, the energy paradox, and the food paradox. The financial paradox refers to leakages in Africa’s financial resources (remittances, private savings, sovereign wealth funds, pension funds, and public revenues) due to a lack of mobilization, itself stemming from illicit financial flows, public expenditure inefficiencies, and more. The energy paradox describes the juxtaposition of Africa’s energy potential with its current electrification capacity. In the same breath, the food paradox points to Africa’s agricultural production capacity by way of its fertile land and diverse ecosystems, compounded with its levels of food insecurity and malnutrition. These paradoxes represent some of the most potent forces obstructing Africa’s development potential. Africa is projected to welcome another billion people in the next 25 years, totalling nearly 2.5 billion people by 2050. In addition to bridging the development gap with its current circumstances, Africa’s most robust challenge is to reach its development potential while accounting for its population growth.
Africa’s perplexity is not a new tale. Earlier this month, our Decarb Digest focused on a Nigerian problem—the tale of how one of Africa’s largest economies is continuously stifled by its oil-dependency, with energy inequities being one of the many collaterals. However, the author nonetheless theorized that the continued integration of renewables in Nigeria’s energy landscape can help improve energy reliability and affordability. Another Decarb Digest enumerated the myriad of African programs and initiatives launched in recent history to improve electricity access, affordability, and reliability. In doing so, the author underscored the challenges posed by Africa’s population growth; however, he ultimately suggested modern technology as a means to close the electricity gap. That said, it is clear that Economy Zero Group’s modus operandi is to highlight conundrums, puzzles, and issues with varying degrees of complexity and couple these with remedies and correctives.
This week is no different, as we will be touching on the growth and development benefits of Africa’s tourism industry, the importance of an integrated sustainable model to drive tourism in Africa, and the role of African governments in preventing the resource curse from affecting the tourism industry.
Economic and Sustainable Growth: Africa’s Usual Suspects
When discussing Africa's economic and environmental potential, the agriculture, energy, mining, and automotive industries are often seen as the usual suspects, with honourable mentions going to the fashion and textile industries. For example, increasing investments in the farm and agriculture economy can not only yield development returns such as increased levels of rural income and employment, but the income generated through agricultural exports could also stimulate demands for goods and services in neighbouring sectors, such as the processing, manufacturing, and transport industries. Additionally, agricultural technology is revolutionizing farming practices, with irrigation methods having the effect of reducing the environmental impact of farming. Economic and environmental prospects are equally encouraging for the African energy sector given that the continent’s abundance in mineral resources is capable of powering low-carbon development and creating export markets. Therefore, these sectors not only hold the key to driving economic growth across the continent but also offer significant opportunities to address pressing environmental challenges. As Africa continues to seek sustainable development, these industries stand at the forefront of the conversation, offering pathways to both economic prosperity and environmental stewardship. However, the abovementioned paradoxes prevent Africans from fully enjoying the fruits of their agriculture and energy resources, condemning them to continued precarity.
Source: un.org
Insights in Africa’s Tourism
That said, another industry has literally and figuratively brought a lot of eyes and attention to Africa: tourism. Tourism is considered a powerful vehicle for economic growth, generating US$170 billion and employment for 24 million people in 2024. There is a perception that tourism has a comparative advantage to other sectors in that visitor expenditures carry the potential to economically reverberate through time. The construction of tourist accommodation creates job markets across several industries, including retail, transport, hospitality, financial services, and other service sectors. Within the realm of food and hospitality, tourism engenders an increase in the consumption of local products, which further translates into higher demand for agriculture, fisheries, and food processing. Therefore, the intrinsic value of tourism as an economic development tool lies in its virtue to bridge other economic activities, thereby serving as the enabler of a circular economy.
The diversity and beauty of Africa’s landscapes and terrains is a potent touristing leveraging point. Africa’s natural and cultural attractions, ranging from its wildlife and safaris to its beaches and coastal areas, without forgetting its cultural heritage and historical sites. Morocco recently dethroned Egypt as the most visited African country, with 17.4 million visitors in 2024. South Africa, Kenya, Tanzania, Rwanda, Ghana, and Nigeria, also feature among the most visited African countries, due in part to increased marketing and promotion of African destinations, improved infrastructural development, and the relaxation of visa policies. The African tourism industry is cautiously expanding its product pool by creating tailored tourism experiences: diaspora tourism, adventure tourism, health and retirement tourism, cultural heritage tourism, among other categorizations. For example, Nigeria remodelled their tourism industries to focus on cultural immersion and have elevated their tourism infrastructure to market themselves as prime locations for Africans and international travellers alike. Similarly, Ghana’s “Year of Return” program in 2019 was designed to encourage the African Diaspora to reconnect with their cultural heritage. Both countries instrumentalized social media to create global cultural phenomena that have significantly boosted local tourism. Detty December is a phrase coined to describe the festive and celebratory atmosphere in Ghana and Nigeria predominantly—through musical, culinary, artistic, and cultural displays—during the month of December. While the Detty December phenomena has also unmasked several drawbacks for locals (inflationary impact of the migration flux and the relegation of locals at the expense of foreigners), it is undeniable that the tourism industry in both countries have economically gained from these cultural experiences.
A Needed Sustainable Model to Sustain Africa’s Tourism
Now that we have shared some insights into Africa’s tourism industry (please note that we have purposely been timid with information in this section—see here how Kenya strategized to grow its tourism industry), let’s dive into the mechanisms required to sustain this upwards trend in Africa’s tourism.
Firstly, as much as Africa's tourism industry must prepare itself for global arrivals, it must also delineate that Africa remains the home of 1.5 billion people, soon to be 2.5 billion. More explicitly from an environmental and ecological standpoint, African governments must ensure that tourism accommodations do not derail both existing and future endeavours to promote development for its local populations. Therefore, repositioning Africa as a serious player in global tourism and as a main driver of economic growth requires the framing of Africa’s assets as more than just attractions; a sustainable model must protect and be built around Africa’s nature, culture, and people. African governments, as frontline stakeholders, must contribute to this reframing by ensuring that governance mechanisms—whether policies, subsidies, or budget allocations—be focused on conservation-based tourism. Also known as nature-based tourism, the focus on natural assets can help African countries achieve development goals while promoting biodiversity conservation. Due to the nature of its industry, tourism is touted to become a prime export market for African countries; however, and similarly to the oil industry, the tourism industry can fall victim to the resource curse if it does protect the very assets that allow the tourism industry to flourish: biodiversity, cultural heritage, local communities.
In addition, African governments and other relevant stakeholders must be conscious of the forces capable of disrupting Africa’s global appeal. Despite its rich natural resources, Africa is still under constant environmental threats, including biodiversity loss, deforestation, and habitat degradation. Furthermore, safety and security are threats to Africa’s development, and to Africa's tourism industry by extension. As an initial step, additional research into the interrelationship between incidences of insecurity and their impact on the tourism industry is required to devise adequate mitigating strategies. A subsequent step could be to understand the effect of security measures on travel behaviour, destination image, and the traveling experience as a whole.
The task at hand is multilayered and multidirectional. Africa must not only preserve its existing assets, but it must also develop these assets to benefit locals and foreigners alike, while also mitigating against threats and industry disruptors. Africa’s development potential hinges on addressing its paradoxes and leveraging its abundant resources across sectors like agriculture, energy, and tourism. Tourism, with its ability to create jobs, stimulate local economies, and showcase Africa’s cultural and natural treasures, stands out as a key avenue for development. To ensure its long-term success, a sustainable model is essential—one that prioritizes conservation, local communities, and responsible tourism practices. African governments must play a central role in safeguarding these assets and promoting policies that align economic growth with environmental sustainability. By balancing development with sustainability, Africa can harness its potential to not only meet the demands of its growing population but drive its industries to potential.
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