00:02Turkish Airlines presents Business Africa
00:11Hello and welcome to this new edition of Business Africa.
00:15I'm Yasmina El Abassi-Rey. Here are the headlines.
00:19Africa's economy is holding up against the global slowdown.
00:23Its growth outpaces other major regions, but investment remains well below the continent's needs.
00:32In Côte d'Ivoire, solar power is gaining ground.
00:35In Farkese-Dougou, 41 billion CFA francs are being invested in a power plant expected to supply more than 370
00:43,000 households.
00:46And Senegal wants to take its tourism industry to the next level.
00:51As some destinations lose momentum, Dakar is looking to the country's heritage and cultural diversity to attract visitors.
01:01Africa's growth is outpacing the global average, and the continent is attracting more private capital.
01:07This is a positive trend, but it remains insufficient to meet Africa's substantial financing needs.
01:15Amid a global economic slowdown, Africa is bucking the trend.
01:20The continent is posting sustained growth and attracting more private capital, a dynamic confirmed by the latest economic indicators.
01:31In the second quarter of 2026, Africa's real GDP grew by 1.6 percent, more than double the global average.
01:42Following Africa, Asia recorded 0.9 percent growth, compared to 0.6 for Europe and to 0.5 for the
01:51Americas.
01:54The momentum is accompanied by an increase in private financing.
01:59According to the World Bank, capital mobilized in Africa with its support reached $22 billion in 2026, up from approximately
02:09$9 billion in 2022.
02:14However, this progress falls far short of meeting the continent's needs.
02:19In 2025, Africa attracted only about $70 billion in foreign direct investment, barely 4 percent of global flows.
02:30The financing gap remains substantial.
02:35The African Development Bank estimates it at over $1.3 trillion annually to achieve the continent's development goals.
02:44Africa is demonstrating solid growth and attracting more capital.
02:50The challenge now lies in transforming this momentum into sustainable investments, infrastructure and jobs.
02:59We're joined now by Félix Zonin, a specialist in financial and mining governance.
03:05Monsieur Zonin, hello.
03:07We've seen some positive figures, but what do they really tell us about growth in Africa?
03:15These figures mainly show that growth is resilient.
03:18African economists are holding up despite the oil price shock linked to the war in the Middle East,
03:23and despite a difficult international environment, and that is encouraging.
03:28However, we must acknowledge that growth is not accelerating everywhere,
03:31because Africa is developing at two different speeds.
03:35Egypt and Nigeria, for example, accelerated over the past two quarters,
03:40while South Africa contracted in the second quarter.
03:43Growth is therefore not evenly distributed across the continent.
03:47It should also be noted that growth slowed slightly across the continent in the last quarter.
03:52The World Bank, the African Development Bank, and the IMF are focused in growth of 4.1%, 4.2%, and
04:004.3%, respectively,
04:02compared with 4.5% in 2025.
04:04However, growth is expected to peak up again in 2027.
04:09Overall, the situation therefore remains positive.
04:12But to truly assess the strength of this growth, we need to look at what it produces.
04:17A new deposit can be opened, and GDP can rise rapidly, bringing in additional resources.
04:22That does not necessarily mean that local companies become more productive,
04:27gain access to new markets, or that households are better off.
04:32Will the increase in private capital be enough to stimulate investment and employment in Africa?
04:39This increase may accelerate investment, but it is not automatic.
04:43The positive point is that it represents a genuine signal.
04:46The more than $25 billion in guarantee provided by the World Bank also help reduce the risk perceived by investors.
04:52From an investment perspective, we are therefore seeing the beginning of a wave.
04:56But the real test concerns employment.
04:58Employment is often the weakest link in the transmission of growth,
05:02and its impact depends on how this capital is used.
05:05In general, 1% point of growth generates around 0.04% point of growth in salaried employment.
05:12Yet, every year, 12 million young Africans enter the labour market,
05:16while only around 3 million formal salaried jobs are created.
05:20For this growth to genuinely benefit employment,
05:22these funds must, above all, help small and medium-sized enterprises expand.
05:27It is by scaling up that these companies will be able to create large numbers of salaried jobs.
05:32What obstacles could prevent this momentum from delivering lasting benefits to African economies?
05:41The price of oil is currently above $100 a barrel.
05:44With such an increase, inflation picks up again and financial conditions tighten.
05:49Investment therefore becomes more expensive.
05:52In Africa, 23 countries are either over-indebted or close to becoming so.
05:56Every amount spent on debt servicing, whether repaying interest or principal,
06:01is a resource that is not being invested in development.
06:04If we do not have enough domestic capital to finance development,
06:08we have to rely on foreign capital.
06:10But foreign capital alone will not be enough to fill a financing gap of more than $1.3 trillion a
06:16year.
06:16To put it simply, you cannot sustainably finance your development with other people's money.
06:22That is a problem.
06:23The final issue concerns the concentration of financing.
06:26A great deal of funding is being raised,
06:29but the overwhelming majority goes to middle-income countries rather than poor nations.
06:34The good news is that these difficulties are matters of public policy.
06:38They are therefore situations that can be changed rather than unavoidable circumstances.
06:47Monsieur Zunin, thank you for joining us.
06:54In Côte d'Ivoire, the energy transition is taking shape.
06:58In Ferques et Dougou, the Ferques Solar Project, led by an Ivorian group,
07:04illustrates the rise in local investment in renewable energy.
07:08In Ferques et Dougou, the sun has become a source of energy.
07:12More than 73,000 photovoltaic panels have been installed across 50 hectares with a capacity of 52.4 megawatts.
07:20But beyond the figures, the key point is the entry of a private, 100% Ivorian-owned producer
07:27into large-scale solar power generation.
07:30It is a great source of pride for a 100% Ivorian company to support the Ivorian government's vision
07:39of increasing energy production capacity for the well-being of the population.
07:45A few kilometres away in Socorro, a village near Ferques et Dougou,
07:49the change is obvious.
07:51The local economy has picked up again.
07:53Here, the mill is running at full capacity.
07:55Having a regular power supply has personally helped me take care of my family.
08:01It has also improved life in the village because our mothers used to struggle.
08:06They had to travel two to three kilometres to mill or process their maize, millet and other grains.
08:13The project is based on the public-private partnership model.
08:17Economic analysts say this approach emphasises the role of the private sector in a country's development.
08:23For this project, for example, the government partnered with a private company
08:28which took charge of developing and structuring the project
08:31and raising the necessary funding through its own partners.
08:35The $41 million needed to build this infrastructure
08:38therefore did not come directly from the government
08:41which also did not have to borrow to finance the project.
08:44This is a new approach.
08:47Ultimately, the electricity generated by Ferques Solar
08:50is said to benefit more than 2 million people.
08:53According to economic expert Flacha Rodolphe,
08:56this project could bring about the transition needed
08:58to make energy production in Africa self-sufficient.
09:05Beaches, sunshine and seaside resorts.
09:08Senegal's tourism image is evolving.
09:10With a target of 2.5 million visitors a year,
09:14the authorities want to diversify the country's offerings
09:17and make more of its cultural and natural heritage.
09:22Tourism in Senegal is gaining momentum.
09:25Last year, the country welcomed around 1.5 million visitors
09:28with the number of French tourists increasing by 18% during the 2025-26 season.
09:36But Dakar wants to go further.
09:38It's aiming at 2.5 million visitors a year
09:41and hopes to reduce reliance on seaside tourism
09:44as the sector shows signs of running out of steam,
09:47notably on the popular Petite Côte.
09:50Industry professionals estimate they've lost nearly 2,000 hotel beds
09:55following the closure of several establishments.
09:57The new strategy focuses on a more diverse range of attractions,
10:02culture, heritage, ecotourism and local experiences.
10:06Senegal aims to promote cultural events
10:08like the Dakar Biennale, the Jazz Festival
10:11and the Fanale de Saint-Louis more effectively,
10:14as well as regions like the Saloum Islands and Casamance.
10:17It will also offer more immersive experiences
10:20like mangrove planting, exploring rice paddies,
10:23cashew nut processing and batik workshops
10:26involving craftspeople, guides and small businesses
10:30to spread the economic benefits.
10:34Senegal will also focus on business and events tourism,
10:37notably by hosting the Youth Olympic Games.
10:40By the end of the year,
10:42the Senegal in a Click platform
10:44is set to bring together the country's tourism offerings.
10:47The aim is to make the country a destination
10:50that is no longer defined solely by its beaches,
10:53but one that draws on its culture, heritage
10:55and the diversity of its regions.
11:00That's all for this edition of Business Africa.
11:04Find us on our platforms and at africanews.com.
11:14Business Africa was presented by Turkish Airlines.
