How globalisation is impacting opportunities in Africa and beyond

GLOBALISATION can be defined as, “The growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. Countries have built economic partnerships to facilitate these movements over many centuries.”

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Since one of four global economic shocks (black Swans) emerged in 2020 with the Covid-19 pandemic, followed by the Russia-Ukraine war (2022), the attack on Israel by Hamas (2023) and the introduction of tariffs on most developed and developing countries by the Trump administration (2025), the debate continues on whether globalisation has slowed down, or is even reversing.

In the South African context, load-shedding has put a spotlight on the energy crisis, and the recent focus on the emerging Southern African “gas cliff” has further exacerbated the continental energy crisis.

Modern trade theory places international trade as one of the most critical drivers of economic growth and development. The principles of free trade permits countries to specialise, using their resources more efficiently and integrating into global value chains (Krugman et al., 2018). What remains in balance is whether Africa can still utilise trade as a driver of growth and, and the policies required or most viable for its development.

Globalisation and the UN Sustainable Development Goals (SDG)

The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015. This was a worldwide attempt to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. Goal 8 is to: Promote sustained, inclusive, and sustainable economic growth, full productive employment, and decent work for all.

From 2000, before the heavily outbreak of the Covid-19 pandemic in 2020, the number of workers living in extreme poverty has declined dramatically, despite the lasting impact of the 2008 economic crisis and global recession. In developing countries, due to globalisation of these countries, the middle class now made up more than 34 percent of total employment - a number that has almost tripled between 1991 and 2015.