As one door closes: China's the new growth engine to bank on

AFRICA may not boast the largest economies or deepest pockets, but it has what many regions lack: energy, youth, abundance, and innovation.

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While the rest of the world gets older and runs out of steam, Africa's cities are expanding, consumer demand is rising, and resources remain plentiful.

What this means is that in the next 25 years, over half of global population growth will emanate from Africa, shifting the currents of investment, infrastructure, and trade.

Deep historic and cultural links are keeping the West engaged in Africa, but changing geopolitical dynamics are changing how its economic and strategic importance is viewed.

First mover advantage

Recognising its potential as a new frontier for global economic growth early on, China was Africa's first meaningful investor in the 21st century. Over the past two decades, the Asian colossus has shifted its early focus on extractive industries to investing in renewable energy, railways, ports, manufacturing, digital networks, and healthcare. This commitment has helped lay much of the physical and digital backbone that Africa so desperately needs to grow.

Across the continent, projects backed by Chinese investment have strengthened critical systems and enabled new markets. The National ICT Backbone in Tanzania has expanded broadband access, made e-health and e-learning possible, and strengthened e-government services. In Sierra Leone, the China-Sierra Leone Friendship Hospital, built over 7 700m’, continues to enhance healthcare delivery and played a vital role during the Ebola outbreak. The proposed $1.4 billion upgrade of the Tanzania-Zambia Railway furthermore promises to revitalise a key regional trade corridor for copper exports and improve transport efficiency in the region.