“Africa is the last frontier,” proclaims Mo Ibrahim, Chair of the Mo Ibrahim Foundation and of Satya Capital, an investment firm that focuses on Africa. The continent has huge resources, he says. “If you really want to make money you have to be there.”

Africa accounts for around 17% of the world’s population, but only about 3% of global GDP. Africa’s most appealing feature for many investors is its youthful population, with all the growth that this implies for sales of consumer products and services.

These statistics highlight the tremendous opportunities and risks ahead, it could be one of the major sources of growth for the world. In 2019 8 of the world’s 15 fastest-growing economies were African. In addition, the IMF predicted that between 2018 and 2023, Africa’s growth prospects would be among the highest in the world. With the onset of the Covid19 pandemic in early 2020, economies and markets contracted, and according to the World Bank, Africa is projected to be in a recession for the first time in 25 years.

Despite the gloomy outlook, there have also been some positive externalities of the Covid19 pandemic in the region. It has unearthed heretofore undiscovered pockets of innovation, like the ten minute Rapid Diagnostic Test (RDT) kit from Senegal, that reveal the ingenuity and creativity of the people on the continent.

It is that innovation that forms the building blocks to transform the economies in Africa. As important as innovation is, it is however not enough to transform an economy. For that to happen it must be developed into a robust business. Funding is a critical aspect of growing a business and access to global markets at a fair rate would be instrumental to success.