The world is entering a period of profound change – geopolitical, economic, and technological. Africa, as a continent with enormous potential, is seeking to define its place in this new era. Some events and initiatives highlighted the role of African countries in the G20, the need to reform global institutions, financial challenges such as unfair credit ratings, the effects of global fragmentation, the formation of a new vision of the continent through the Africa House platform, and the development of artificial intelligence in Africa as a source of both great opportunities and significant challenges.

The MIM:AGENCY team has conducted an in-depth study of each of these aspects and is ready to present some interesting conclusions.

South Africa and Africa in the G20: new opportunities and priorities

For the first time in history, South Africa holds the G20 presidency, assuming this role in 2025 as the first African country to lead the G20. This comes shortly after the African Union joined the G20 in 2023, giving the continent a greater voice at the highest level of economic cooperation. Speaking at the World Economic Forum in Davos 2025, South African President Cyril Ramaphosa outlined the priorities of his presidency. He called solidarity, overcoming inequality, and sustainable development the main topics. According to him, the G20 should focus on an inclusive global economic recovery so that “no one and no country is left behind.”

Ramaphosa emphasized that a return to genuine multilateral cooperation is needed to overcome global crises such as climate change, conflict, and growing inequality. In his speech, he called for the full use of collective resources and modern technologies to fight poverty, inequality, unemployment, especially among young people, and violence against women. Under African leadership, Ramaphosa said the G20 should work on the debt sustainability of poor countries, helping to solve the problem of unsustainable debts for low-income countries. In addition, Africa, led by the G20, emphasizes the need for active action on climate change – the transition to renewable energy and green development, and this transition should be equitable for all segments of the population.

One of the concrete steps proposed by the African leadership was the demand to redistribute the International Monetary Fund’s Special Drawing Rights (SDRs). Ramaphosa noted that more than 60% of these reserve assets are currently held by rich countries, which is unfair. He called for more SDR funds to be allocated to African and other countries in the Global South so that they can invest in infrastructure, industrial development, education, and healthcare. Only under these conditions, he emphasized, will the principle of “prosperity for all” become a reality, not just a slogan.

Calls for reform of multilateral institutions

The priorities voiced by the African G20 presidency are closely linked to a broader issue: the need to reform international institutions. As Ramaphosa noted, achieving the goals of solidarity and sustainable development is only possible through effective multilateral mechanisms such as the UN, the World Trade Organization, the World Health Organization, global financial institutions, and the G20 itself. However, these institutions need to adapt to new realities. African leaders and their allies emphasize that the global institutions created in the last century need to become more representative and equitable.

The challenge of reforming the multilateral system is particularly relevant against the backdrop of unilateralism by some major powers. For example, the refusal of some countries to participate in the Paris Climate Agreement or to support the WHO undermines the credibility of joint decisions. In these circumstances, the role of new G20 members, such as the African Union, is to insist on collective action even when global unity is being tested. Africa is offering concrete ideas: coordinated efforts for inclusive growth, support for poorer countries with investment, debt relief, and climate finance. The continent’s voice is calling for international financial rules to be made more development-friendly, which is in the interest not only of Africa but of the world.

Drawing on their own experience in dealing with pandemics and economic shocks, African states are advocating for a renewed global governance system. The point is to ensure that decision-making structures – from the UN Security Council to Paris Club creditors – reflect the modern world, where Africa has 1.3 billion people and enormous economic potential. Initiatives such as greater African representation in the governing bodies of the World Bank and IMF or the creation of special funds under the auspices of the G20 for infrastructure development are part of this discourse. In this way, Africa is asserting itself as a constructive driver of reform, seeking to make global institutions more effective and fair.

Criticism of unfair credit rating of African countries

Another important topic is the issue of financial confidence in Africa in the global market. In recent years, criticism of international rating agencies regarding their assessment of African countries has been attracting more and more attention. On the sidelines of forums such as Davos, African representatives point out that there is an “African risk premium” that makes borrowing costs for African countries too high compared to other regions.

At a discussion organized by the Africa House platform in Davos, Africa House co-founder Mamadou Touré pointed out that countries on other continents with similar or even worse stability indicators receive higher ratings from rating agencies than African countries. This leads to a situation where African borrowers have to pay more for loans than is objectively justified. A representative of S&P Global Ratings, President of the rating division, Yann Le Pallec, spoke in Davos to defend the practices of his industry. He insisted that the rating methodologies are objective, transparent, and data-driven, and that the agencies themselves are designed to provide investors with unbiased information for decision-making. Le Pallec emphasized that all risk assessment models are publicly available and can be verified by independent parties, thus, the agencies are open to feedback and constantly improve their analyses.

However, critics insist that the problem is systemic. According to them, rating agencies often “lump all African countries together” without taking into account the significant differences between them. In fact, the continent is extremely diverse: African economies differ in terms of GDP growth, ease of doing business, and many other indicators. Le Pallec acknowledged that Africa is a set of very different economies and agreed that the lack of quality data on individual countries can affect risk perception. He noted that efforts by African countries themselves to improve their image and transparency are essential to overcome misperceptions.

African panelists emphasized the need to change the narrative about the continent. Ndidi Okonkwo Nwuneli, President of ONE Campaign, emphasized in Davos that Africa suffers from generalizations: investors and analysts tend to evaluate it as a whole, often taking into account the most problematic examples and ignoring the successes. She argues that negative media stereotypes, insufficient data, and biased ratings directly contribute to this “risk premium.” The consequences are tangible: African countries are overpaying billions of dollars every year due to inflated interest rates, which only exacerbates the debt crisis and diverts funds from development.

To change the situation, Nwuneli proposed the creation of a Commission on the Cost of Capital, using South Africa’s G20 presidency to put this issue on the global agenda. At the same time, other leaders, such as the President of the African Development Bank, Akinwumi Adesina, support the idea of establishing an African rating agency. Such an institution could better take into account local peculiarities and operate with more accurate data on the continent’s countries, in effect providing a “second opinion” alongside the assessments of large Western agencies. Initiatives like these are aimed at making Africa’s borrowing costs fairer and more in line with actual risk rather than stereotypes.

It is noteworthy that even the S&P representative recognized Africa’s enormous economic potential. According to him, by 2035, 65% of global GDP growth will be generated by emerging markets and frontline markets, a significant portion of which are in Africa. This means that investing in Africa is investing in the lion’s share of future global economic growth. Overcoming credit rating biases is therefore in the interest of global investors who should not miss out on the African recovery.

Implications of global fragmentation for Africa and the global economy

The world economy is facing the phenomenon of global fragmentation – the growing division into regional blocs due to trade wars, geopolitical tensions, and protectionism. According to a survey of chief economists conducted by the World Economic Forum, more than 75% of experts expect that international corporations will have to restructure their supply chains in the coming years. About 91% of economists predict that multinational companies will diversify or regionalize production to reduce risks. 79% believe that businesses will focus more on key, more stable markets, and almost the same proportion of experts expect companies to withdraw from high-risk markets.

This trend means that globalization in its previous form is changing: production and trade are becoming more regionalized. At first glance, this may increase the resilience of companies to shocks, but at the same time, it will increase costs for consumers and businesses. Economists unanimously warn that fragmentation will inevitably lead to higher prices for goods and services over the next three years. The reason is the breakdown of existing global value chains and the transition to models such as friend-shoring (transfer of production to partner countries) and reshoring (return of production to the home country). The loss of economies of scale and efficiency from global cooperation will push inflation up.

In terms of geopolitics, 64% of the surveyed experts believe that fragmentation will widen the gap between the global North and South. At the same time, 79% foresee a more bipolar world system dominated by two major centers of power. This may make it more difficult for Africa to maneuver between influential blocs. In addition, pessimism about joint action on global issues prevails: more than 80% of economists believe that international cooperation in the fight against climate change will weaken amid such divisions.

What does fragmentation mean for Africa? On the one hand, the forced regionalization of trade could be an impetus for Africa to strengthen intra-continental integration. If global chains break down, African countries can trade more closely with each other, develop their own production networks, and thus become more interdependent within the continent. This will potentially increase Africa’s competitiveness on the global stage, as strong regional markets are the basis for industrial development. Initiatives such as the African Continental Free Trade Area (AfCFTA) are becoming even more important as a way to economic strengthening in the face of global disruption.

On the other hand, regionalization may deepen the technology and knowledge gap between countries. Countries that fail to build modern infrastructure or adopt advanced services risk falling further behind. African economies that are gradually shifting from commodity dependence to the service sector may face a slower transition to high-performance services. In addition, the WEF survey showed that most experts expect only moderate economic growth in Sub-Saharan Africa in 2025, while inflationary pressures will remain high (80% predict moderate or high inflation). In North Africa and the Middle East, the outlook is also restrained.

In these conditions, the key to success will be the cooperation of African countries themselves. Intra-continental solidarity and policy coordination will help Africa better capitalize on the potential benefits of regionalization and mitigate risks. Joint investments in infrastructure, coordinated digital and education strategies can prepare the continent for a new, less globalized but more networked world economy. Africa is already demonstrating examples of a positive approach: amid rising isolationism in developed countries, African leaders are promoting ideas of openness and “positive energy” that can counteract dark sentiments. Despite all the risks of fragmentation, the African region has a chance to strengthen its economic foundation and become a shining example of cooperation in a turbulent world.

Africa House platform: shaping a new vision for the continent

The Africa House, a special platform created to promote the African agenda and partnerships, is becoming increasingly prominent in global forums. It was initiated by African thought leaders, including the Africa 2.0 organization co-founded by Mamadou Touré. Africa House operates on the sidelines of major international events (such as the World Economic Forum in Davos), bringing together African statesmen, businessmen, investors, and innovators. Its goal is not only to talk about problems, but also to generate solutions and launch concrete initiatives.

Toure emphasizes that Africa House aims to become a place where uncomfortable questions about Africa’s future are asked and non-trivial answers are sought. According to him, the last few years of global turmoil (pandemic, conflicts, economic crises) have shown that Africans need to take their destiny into their own hands. The world is becoming more fragile, and the old systems of international support do not always work, so the continent must look for new ways of development without relying solely on external assistance. As an example, Touré cites the African diaspora, which remits about $100 billion annually, which is significantly higher than the amount of official aid Africa receives from developed countries. This indicates a colossal resource of its own that can be used for progress if the right mechanisms are found.

One of the issues Africa House will focus on is overcoming negative narratives about Africa. As Touré notes, the continent has developed a high-risk image that scares investors away. However, this image is largely a matter of perception, not reality, as financial defaults are less common in Africa than in other regions, but infrastructure projects still face a lack of funding. To change the situation, Africa House will hold a special session in 2025 with leading media executives from Africa and the world to discuss how to change narratives and reduce the unjustified “Africa risk” in the eyes of the global community. As Toure said, “Unfortunately, perception is reality, and risk is a matter of perception,” so fighting preconceived notions is of great importance.

Another important focus of Africa House is to find innovative development models for Africa. Toure notes that repeating someone else’s path may not be the best option for the continent – it needs to jump ahead right away. For example, in the energy sector, Africa may not build exclusively old-style centralized power grids, but use a decentralized approach – smart mini-grids, renewable energy sources at the community level. This way, people will get electricity without waiting for the construction of large power plants. Similar ideas of a “technological leap” are being discussed in other areas. In 2025, Africa House is partnering with the Pax Technologica initiative and has invited the famous artist and tech investor, will.i.am, to its events to draw attention to the role of the latest technologies in development. This symbolizes the belief that technology will be the key to solving old problems.

Touré also emphasizes Africa’s enormous natural wealth, which he says exceeds $100 trillion in potential value. He points to the emergence of new tools-blockchain, Web3, artificial intelligence – that make it possible to tokenize these resources. In other words, digital technologies can help monetize natural assets, attract investment, and distribute benefits from them fairly. These approaches are a stark departure from previous models of resource exploitation and allow Africa to break with the past of being a mere supplier of raw materials. Africa House aims to become an incubator for such bold ideas. Several breakthrough technologies and investment partnerships for Africa are expected to be announced at the 2025 events. Unlike many forums that are limited to talk, Africa House wants to prove its effectiveness with concrete projects.

Importantly, by moderating and inspiring discussions, Africa House does not claim a monopoly on setting the course for Africa. “We convene, facilitate, encourage, and set the direction,” says Touré, ”but we let the parties decide the future of Africa themselves. One thing we’ve learned is that when things are too centralized, things get slowed down.” This approach, which combines the global positioning of the African voice with respect for the sovereign decisions of each country and participant, is a truly new vision for the continent.

Artificial intelligence: an opportunity and a challenge for Africa

One of the central themes around which the above issues coalesce is AI. This technology simultaneously promises Africa the tools to leapfrog in development and poses new challenges. African leaders recognize that in order not to be left behind in the next technological revolution, the continent must actively embrace AI, build the appropriate infrastructure, invest in human capital, and build public trust in new solutions.

The problem of trust and training. The attitude towards AI in Africa is currently quite cautious. A survey conducted by the Lloyd’s Register Foundation in London in 2021 showed that people in many African countries are more afraid of AI than people in other regions. In particular, in East Africa, the majority of respondents expressed the opinion that artificial intelligence will harm rather than help people in the coming decades. By comparison, in East Asia, only 13% of respondents had a negative attitude toward AI, with optimism prevailing there. One of the reasons for skepticism on the African continent is the low level of access to the Internet and technology, where people are less exposed to modern digital solutions, and they no longer trust them. Another factor is the fear of the unknown: the media often reports fears that AI will lead to mass unemployment and even get out of human control, causing social collapse.

Such statements, such as OpenAI CEO Sam Altman’s joking remark that “AI will probably lead to the end of the world, but in the meantime, great companies will be created,” only add fuel to the fire of anxiety.

In fact, many African entrepreneurs and experts believe that AI can be a net job creator if done right. Alexander Tsado, co-founder of the Alliance4AI group from Johannesburg, emphasizes that if employees are trained to use new tools, AI will create more jobs than it will take away. He notes that “AI will not take your job, but someone who has mastered AI can take your place,” hinting at the need for advanced training. Another expert, Mehdi Sayegh from the AI Connect Africa technology hub in Abidjan, notes that the public still perceives AI as an “evil” or dangerous force and lacks an understanding of whether user data is safe.

The solution to these problems should be large-scale education and training, both among the public and in business circles. Currently, many African business leaders are not fully aware of how AI can benefit their businesses. Closer dialogue between tech experts and entrepreneurs is needed to show examples of successful solutions. In this context, the banking sector stands out positively: some large African banks, such as First National Bank in South Africa, have already implemented AI for fraud detection and other tasks. However, in general, the lack of digital skills and lack of understanding of the opportunities remains significant barrier.

Transformational potential of AI in key sectors. Despite the warnings, there are already examples of how AI is improving living standards on the continent. Experts point to several sectors where the impact of this technology could be disruptive:

  • Agriculture: AI helps farmers increase yields. African countries are already using algorithms to analyze data on precipitation, soil conditions, pest spread, etc. Based on such large amounts of information, farmers receive real-time recommendations on when to sow, how much fertilizer to apply, and how to respond to weather changes. Venkataramani Srivatsan, a representative of the global agricultural company Olam, noted that AI can determine the success of a crop by applying pesticides or fertilizers at the right time – this technology can transform not only individual farms but the entire sector on a scale never seen before. For Africa, where the agricultural sector remains vital and still relies heavily on manual labor, the introduction of intelligent systems could mean a leap in productivity and improved food security.
  • Healthcare: AI is already being used in healthcare, both to track the spread of diseases and to increase access to healthcare services. One project in Mozambique demonstrated how portable X-ray machines combined with artificial intelligence can quickly detect tuberculosis cases even in difficult conditions, such as remote prisons. The algorithms analyzed the prisoners’ X-rays and quickly identified patients who were immediately isolated and treated. Thus, AI made it possible to diagnose a dangerous disease in a matter of minutes, whereas previously it could have taken weeks of laboratory tests. In general, the capabilities of so-called prescriptive AI, which not only predicts but also recommends specific actions, are invaluable for African medicine. Cado notes that such tools can bring basic medical care closer to remote villages. For example, a person from the hinterland could send a text message to an AI chatbot and get an initial consultation or advice without spending their last savings on a trip to the city. With an average of one doctor per several thousand inhabitants per country (Nigeria has 1 per 5,000, while developed countries have 1 per several hundred), such technologies can close the critical shortage of medical personnel, saving many lives. As Amal El Fallah Seghrouchni notes, “We still lose a lot of people to diseases that are not really difficult to treat,” and AI can radically reduce mortality from treatable diseases through rapid education and remote patient support.
  • Banking and finance: AI opens up new horizons for financial inclusion. In Africa, millions of small entrepreneurs cannot get a loan due to the lack of collateral or credit history – banks consider them too risky. As a result, it is estimated that about 40% of small and medium-sized enterprises (SMEs) in Africa cite lack of financing as a major obstacle to growth, and the total business financing gap is estimated to be $140 billion. Artificial intelligence can help solve this problem through alternative scoring: by analyzing large amounts of data on potential borrowers’ transactions, expenses, and behavior, algorithms can assess their creditworthiness without traditional collateral. Tsado explains that AI can understand a person’s financial habits and predict how responsibly they will repay a loan. This approach will allow us to provide loans to those who were previously excluded from the system, thus unlocking enormous opportunities for the economy. According to experts, Africa needs about $100 billion in infrastructure and business investments annually to achieve its development goals. AI can become a tool that will find new sources of this funding, opening up loans to thousands of startups and SMEs across the continent.

Obstacles: funding, infrastructure, and human resources. To fully realize all these opportunities, Africa will have to overcome significant obstacles. One of them is the lack of investment and talent in AI. Although interest in African tech startups is growing, the numbers are still modest. In 2023, total venture capital investments in Africa amounted to about $3.5 billion, down 46% from the previous year (this decline partly reflects the global trend of declining venture capital). Given that technology competition investments are very high in the world, it is difficult for African projects to attract funding: most resources are concentrated in the United States, Europe, and China. In the United States alone, total private investment in AI is close to $250 billion, and about 60% of the leading AI researchers work there. Thus, African developers are competing for investors’ attention with more “mature” ecosystems.

However, there are strong arguments that some of the global capital should turn its attention to Africa. According to Tsado, African markets offer “huge opportunities” for venture capital funds and foreign investors. The reason is the social and economic transformational nature of the solutions being implemented here. While in highly developed countries, AI sometimes solves rather small tasks (such as optimizing food delivery 30 minutes faster), in Africa, the same technology solves survival issues: it saves crops from diseases, provides basic medical care, and gives small businesses a financial chance. In other words, an investment in African AI is an investment that can improve the lives of hundreds of millions of people, which is attractive not only from a commercial but also from an ethical point of view. Moreover, according to Amal El Fallah Seghrouchni, such solutions developed for specific African conditions can be scaled up to other regions. Africa can become a source of original and disruptive AI products that will be successful around the world.

To make this scenario a reality, African countries need to work in several directions. First, they need to develop digital infrastructure – from affordable internet to cloud computing – so that AI solutions can be implemented everywhere, not just in a few technological oases. Secondly, invest in education and training: encourage young people to choose STEM specialties, create AI competence centers, and encourage African talent to return from abroad or collaborate with local projects. Thirdly, governments and businesses should work together on proper regulation and ethics of AI to increase public trust – people need to see that new technologies are used responsibly and for their benefit. Finally, it is important to continue the positive narrative about AI promoted by leaders like Seghrouchni: showcasing successes, telling stories where AI has helped solve a pressing problem. This will gradually change public opinion from fear of the unknown to pragmatic optimism.

Conclusions

Africa is entering a new era of global transformation with ambitious plans and healthy pragmatism. The continent is actively asserting its rights and opportunities on the world stage: through its G20 presidency and demands to reform outdated international institutions, it is seeking fairer treatment and more resources for development. At the same time, Africa is looking for internal reserves for a breakthrough, challenging unfair financial assessments, uniting in the face of geo-economic fractures, and forming new partnerships on platforms like Africa House, where Africans themselves set the agenda.

Artificial intelligence has a special place in this new vision. Africa is realizing that this powerful tool can be a catalyst for rapid development – if it overcomes fears and finds the means and knowledge to implement it. In key areas, from farming to banking, the first sprouts of change are already visible, and they can grow into mature fruits, improving the lives of millions of people. Success requires joint efforts by governments, businesses, and civil society: investing in people and technology, sharing victories, and building trust in innovation.

In the new global reality, where old models are giving way to uncertainty, Africa is demonstrating a proactive and optimistic approach. The continent seeks not only to adapt to change, but also to determine its trajectory. With a balanced combination of critical analysis and belief in its potential, Africa can turn challenges into a springboard for breakthroughs. The current steps are only the beginning of a long journey, but they indicate that Africa’s future in an era of global transformation is being shaped today, and shaped by Africans themselves.

Sources:

  1. World Economic Forum (WEF), Global Chief Economists Outlook, January 2025
  2. Africa House Davos Sessions (2025)
  3. S&P Global Ratings
  4. ONE Campaign — Ndidi Okonkwo Nwuneli
  5. Alliance4AI — Alexander Tsado
  6. AI Connect Africa — Mehdi Sayeg
  7. UNESCO & WHO Statistics
  8. Lloyd’s Register Foundation Report (2021)
  9. African Development Bank Group (AfDB)
  10. Pax Technologica & will.i.am Tech Alliance
  11. Olam Group – Srivatsan Venkataramani