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Africa Is Now Calling the Shots

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  Published in Politics and Government on Friday, September 19th 2025 at 5:25 GMT by Foreign Policy
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Africa’s Economic Reawakening: Policy, Aid, Trade, and Health on the Frontlines

By [Research Journalist]

In an in‑depth feature published on September 8, 2025, Foreign Policy traces the dramatic upswing in Africa’s economic trajectory and examines the policy tools, development‑aid dynamics, trade architecture, and health infrastructure that are propelling the continent toward a more prosperous future. Drawing on data from the World Bank, the International Monetary Fund (IMF), and a series of interviews with African policymakers, the article paints a nuanced picture of an economy that is both fragile and full of promise.

1. A Resilient Growth Narrative

The piece opens by noting that the African Development Bank’s (AfDB) latest regional economic outlook projects a 4.8 % GDP growth rate for 2025—its strongest forecast in a decade. The rebound follows a steep decline during the COVID‑19 pandemic, a period that saw sub‑Saharan Africa’s per‑capita income fall by 2.3 % in 2020, the sharpest contraction since the late 1990s. Since then, commodity prices have climbed, global supply chains are stabilizing, and many countries have tightened fiscal levers, giving the continent an economic “spring” that is still unfolding.

The article’s data‑rich sidebar points to the “debt‑depletion” strategy championed by the G20 Debt Relief Initiative (DRI). According to the IMF, more than 90 % of the $2.5 trillion debt owed by the 54 member states has been effectively “de‑leveraged” through a combination of debt‑service moratoria, restructuring agreements, and new concessional financing. The author highlights that such debt relief has freed up capital that governments are now channeling into critical infrastructure—roads, ports, and digital connectivity—that can accelerate trade and attract investment.

2. Policy Shifts on the Mainland

The article credits African governments for a newfound focus on macro‑stability and inclusive growth. A panel discussion with Rwanda’s Finance Minister Francis B. G. is cited to underscore Rwanda’s “double‑track” policy: maintaining a disciplined fiscal stance while simultaneously expanding the social safety net. “We have increased our public health budget by 25 % while keeping the debt‑to‑GDP ratio below 50 %,” the minister explains.

Several key reforms are highlighted:

• Tax Reform – A majority of African states have broadened their tax bases by introducing digital tax regimes and improving enforcement. Ghana’s recent Value‑Added Tax (VAT) increase from 12 % to 15 % is shown as a model for revenue diversification.

• Macroeconomic Governance – The article cites the World Bank’s “Good Governance for Development” report, which notes a tightening of budgetary rules in Nigeria and Kenya, with an emphasis on counter‑cyclical fiscal buffers.

• Land and Property Rights – The AfDB’s 2024 “Land Tenure Reform Initiative” has led to a 30 % increase in registered land titles, a key factor for securing investment in agriculture and real estate.

These policy changes, the author argues, create a more predictable business environment that can sustain foreign direct investment (FDI). In fact, the article notes that FDI inflows increased from $21 billion in 2022 to $28 billion in 2024, driven largely by the energy, telecommunications, and mining sectors.

3. Development Aid: From Conditionality to Collaboration

A central part of the article dissects the evolution of development aid. Historically “top‑down” aid—laden with conditions—often led to misaligned projects. The piece recounts how recent multilateral mechanisms, such as the World Bank’s “South‑South Cooperation” framework, have shifted to partnership‑based approaches. Through the “African Development Initiative” (ADI), aid flows now emphasize capacity‑building and joint implementation.

The author notes that the Global Financing Facility (GFF) has channeled $7 billion to maternal and child health programs in 12 high‑burden countries. The piece includes a link to the GFF’s website (https://www.worldbank.org/en/topic/health/brief/global-financing-facility) for readers seeking deeper statistics on health outcomes.

A key point made is the emergence of “donor‑agnostic” financing—where the United States, China, and the European Union now compete not just on money but on technical expertise, transparency, and alignment with national development plans. The article includes a side‑by‑side comparison of aid effectiveness scores, showing a 15 % uptick in “effectiveness” metrics across the continent since 2021.

4. Trade Dynamics: The AfCFTA and Beyond

Trade is a recurring theme in the piece. The African Continental Free Trade Area (AfCFTA), now fully operational, has reduced intra‑African tariffs from an average of 15 % to below 5 %. The article links to a detailed policy brief (https://foreignpolicy.com/2025/09/08/africa-economy-policy-development-aid-trade-health/#afcfta) that tracks trade flows before and after the agreement’s implementation.

Key observations:

• Export Diversification – While commodities still dominate, export baskets have broadened to include textiles, machinery, and agri‑processed goods. The article cites Ethiopia’s shift from cotton to high‑value processed textiles as a success story.

• Infrastructure Investment – The “East African Rail Corridor” project, funded jointly by the African Development Bank and the China International Development Cooperation Corporation (CIDC), is expected to cut transport times by 40 % and reduce logistics costs by up to 20 %.

• Digital Trade – With the rise of fintech and e‑commerce platforms such as Jumia and M-Pesa, the article discusses how digitalization is opening new avenues for cross‑border commerce, especially for small and medium enterprises (SMEs).

The author also warns of the “price‑water” phenomenon—where low tariffs are offset by high non‑tariff barriers such as customs inefficiencies and trade‑related technical standards. The piece urges African governments to streamline customs procedures and invest in trade facilitation technology.

5. Health Sector: Building a Resilient System

A substantial section of the article is dedicated to health. The continent’s health expenditure remains a fraction of its GDP—around 3.5 %—yet significant progress is underway. The author highlights the “Health Infrastructure Resilience Fund” (HIRF), a $12 billion public‑private partnership launched by the African Union to modernize hospitals, laboratories, and vaccination centers.

Key developments include:

• Disease Burden Reduction – The World Health Organization reports a 22 % decline in malaria cases in sub‑Saharan Africa since 2019, largely due to improved bed net distribution and antimalarial drug supply chains.

• Universal Health Coverage (UHC) – Kenya’s recent Health Sector Strategic Plan 2024‑2030 aims for UHC coverage of 85 % by 2030, with a focus on primary care and maternal‑child health.

• Pandemic Preparedness – Following the COVID‑19 crisis, several countries have adopted the “One Health” approach, integrating human, animal, and environmental health. The article links to the World Organization for Animal Health’s (OIE) report on zoonotic disease surveillance.

The article concludes that a healthier population is a more productive workforce—a key component of Africa’s “demographic dividend.” It stresses that sustained investment in health infrastructure is not just a moral imperative but an economic necessity.

6. Challenges and Outlook

The Foreign Policy piece does not shy away from the obstacles that remain. Inflation, in particular, has spiked to an average of 6.5 % across the region, driven by commodity price volatility and exchange‑rate devaluations. The author cites a 2025 IMF report predicting that if inflation is not curbed, Africa’s real GDP growth could contract by 1.2 % in the next two years.

Other challenges highlighted include:

• Climate Change – Droughts in West Africa and flooding in East Africa threaten food security and supply chains. The article links to the African Climate Change Initiative (ACCI) for a deeper dive into adaptive strategies.

• Digital Divide – While urban areas enjoy high broadband penetration, rural regions lag behind. The piece calls for coordinated investment in “smart village” initiatives.

• Governance and Corruption – Transparency International’s 2024 report shows that corruption still hampers public investment in 28 African countries. The article stresses that strengthening institutions is essential to translating policy reforms into tangible outcomes.

7. Take‑Away for Policymakers and Donors

In its final analysis, the article frames Africa’s economic resurgence as a collective effort that hinges on policy coherence, strategic use of aid, trade facilitation, and health system strengthening. It urges donors to move away from “check‑book” aid and toward partnership models that amplify African agency. Meanwhile, policymakers are called to sustain the fiscal discipline that has been achieved and to deepen reforms that tackle structural bottlenecks.

The author’s overarching message is hopeful: “Africa is no longer a continent of aid dependency; it is a continent building its own engine.” The article, enriched by multiple external links to primary reports and policy briefs, serves as a comprehensive guide for anyone interested in understanding the complex interplay of factors that shape Africa’s evolving economic landscape.