Africa's innovation and renewable energies predict bright future for continent

2021-12-30 13:07:25
Africa's innovation and renewable energies predict bright future for continent

Despite the massive challenges facing Africa and the rest of the world caused by the Covid-19 pandemic for the past two years, the continent had some positive developments, according to a report in AllAfrica.

Global investment, innovation, and a renewable wave set the tone for a positive outlook across Africa, while paving the path for a much-awaited 2022, the report said.

Albeit bleak economic predictions for Africa's financial future under the Covid umbrella, sub-Saharan Africa is set to emerge from the 2020 pandemic-sparked recession, with growth expected to expand by 3.3 percent in 2021.

This is one percent higher than the April 2021 forecast, according to the latest edition of Africa's Pulse, a World Bank's bi-annual report.

This unexpected bounce is fueled by elevated commodity prices, a relaxation of stringent pandemic measures, and recovery in global trade. The report predicts continued, albeit modest, growth for 2022 and 2023.

According to the report, multiple countries across the continent have seized the global crisis as an opportunity to foster necessary macroeconomic reforms. These include the unification of exchange rates in Sudan, fuel subsidy reform in Nigeria, and opening the telecommunications sector to the private sector in Ethiopia.

According to Bloomberg, fundraising by African startups is set to reach $5 billion in 2021, a higher amount than the figure raised in the previous three years combined.

The continent's youthful and growing population, rising internet penetration, and the application of emerging technologies that could improve access to healthcare, financial services, education, and energy, all factor in the ecosystem's staggering growth.

In fact, between 2015 and 2020 growth of African tech startups receiving financial backing was nearly six times faster than the global average.

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