Africa's growth must deliver prosperity for its people
It is the responsibility of Africa's economic elite to build a continent where opportunity, wealth and prosperity are more widely shared. This is how it can be done.
For most of their adult lives, Africa has been touted as the continent of the future. Its potential lies in its natural resources, youthful population, and entrepreneurial spirit. While some of this optimism has been justified, a significant divide remains between Africa's economic potential and the prosperity of its people. This disparity is one of the continent's most pressing challenges, and those in positions of economic and institutional leadership must accept greater responsibility for it.
For many Africans, the promise of development still feels distant, as they work hard and make great sacrifices for their families, yet often find little real chance to improve their circumstances.
The IMF reports that sub-Saharan Africa grew by 4.5% in 2025, its fastest pace in over a decade. However, closer examination reveals a less rosy picture. The World Bank projects that income per person in the region will only rise by 1.8% in 2026, and nearly half of the population will still live on less than $3 a day. This stark contrast underscores the real gap between growth and prosperity.
An economy can expand for years without becoming more productive, and a household can work harder each year while its income buys less. Fluctuations in currency value can also severely impact livelihoods. Nigeria, Ghana, and Egypt, for instance, have experienced significant currency depreciation over the past decade, exacerbating the cost of essential goods like food, fuel, and transport.
The remedy lies in economies that are productive and competitive enough to sustain confidence in their currencies. These economies need to export more, import less of what they can produce domestically, and manage their public finances with discipline. However, the success of a small group of entrepreneurs has not been matched by a broader distribution of opportunity.
Legitimacy depends not only on legal authority but also on whether people believe the system offers them a fair chance to improve their lives and those of their children. When growth seems to reward connections over effort, frustration can harden into resentment, eroding trust in institutions and the power of those who hold it.
Governments cannot tackle this issue alone. Africa's elite includes political leaders, entrepreneurs, financiers, investors, and those who run major institutions. Together, they decide how capital is allocated and how institutions serve the public good. While philanthropy has its place, it cannot substitute for an economy where productive work, access to capital, fair competition, and upward mobility are widely available.
Africa needs many more people with a real chance to succeed. Capital that remains idle, such as unpaid receivables, is a significant issue. Factoring, invoice discounting, and supply-chain finance can help alleviate this by enabling suppliers to raise funds against verified invoices from creditworthy buyers. While Africa is making progress, the pace of change needs to accelerate.
Written by urgent.news from Africa Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
