By DALU AJENE
Africa’s economic landscape is undergoing a significant transformation, driven by shifting demographic needs, demand for commodities include rare minerals, technological and digital transformation, trade and regional integration and strategic partnerships.
As the continent navigates the complexities of global economic trends, it is poised to capitalise on emerging opportunities and cement its position as a key player in the global economy. Africa’s economic growth is projected to reach 4.4% by 2026, driven by a combination of factors such as fiscal consolidation, rising domestic demand, and growth in resilient sectors including financial services, digital, telecom and tourism. Its long-term projection can be sustained at over 3% if Africa continues on its path to embed integrated development strategies including value added industrialisation and AfCFTA.
Africa can lead the green revolution the world expects due to its vast renewable energy potential, including solar and wind resources which is expected to drive growth in the energy sector. The continent’s arable land and favourable climate make it an attractive destination for agricultural investment, with potential for significant growth in output and exports. The fintech ecosystem, is at its infancy, valued at over $US3 billion, with startups attracting significant funding and driving innovation in financial services – a new springboard for exponential growth.
Significantly, private sector investment in Africa is increasing, with multinational corporations and global financial institutions recognising the continent’s growth potential. Foreign Direct Investment [FDI] inflows to Africa reached $US47 billion in 2023, up 10% from 2022, with investments in infrastructure, energy, and technology driving growth.
The Africa Summit thought leadership event in Lagos, organised by Standard Chartered Bank, in collaboration with government, private sector and business organisations, sought to discuss these important factors underpinning Africa’s attraction with an emphasis on industry participants committed to unlocking growth while navigating the ever-evolving challenges evident in doing business in Africa and Nigeria.
The summit unpacked four things that stand conspicuous for me. First, Nigeria’s government can only benefit from adopting a ‘whole of Africa’ approach that brings together governments, private sector and development finance institutions to deal with the well-documented infrastructure deficit evident in Nigeria and a lot of African nations. The country’s grand ambitions in infrastructure are already a one-way ticket to success. Nigeria’s National Integrated Infrastructure Master Plan, a public-private sector driven multi-trillion-dollar development plan, is a good place to start. It seeks to enhance the market’s infrastructure over the next two decades – including significant projects such as the $US 11 billion Lagos-Calabar coastal road that traverses and connects eight coastal states, the Lagos transit metro consisting of the 68km Green Line train that will service key urban nodes in Lagos, and the 92,000km fibre optic backbone project across Nigeria to expand coverage and boost digital inclusion.
Second, Nigeria’s diversification of its industries and exports away from the oil and gas sector will drive the country towards growth. In H1 2025, non-oil GDP growth outpaced oil GDP growth by a factor of 1.71x. In the same period, the non-oil tax collections surged by 44.2%, demonstrating a resurgence of growth in critical non-oil sectors. This has also contributed meaningfully to export led growth, which is already bearing fruits. According to the Nigeria Export Promotion Council (NEPC), Nigeria’s non-oil exports hit $US 1.791 billion in Q1 2025, a 24.75% increase from Q1 2024. Led by products such as agricultural products, this growth reflects progress in Nigeria’s diversification strategy. Export volume also saw a 243% jump, reaching over 2.4 million metric tonnes.
Third, the biggest opportunity yet for Nigeria, is in the African Continental Free Trade Area [AfCFTA] which aims to expand market access, liberalise trade in goods and services, reduce tariffs and non-tariff barriers and promote intra-African trade. Today, Nigeria’s future is more connected than ever. Nigeria’s inclusion in this free trade area helps to facilitate trade in sectors ranging from fishery and textiles to automotives and electricals. Following this agreement, Nigerian exports to African markets outside of West Africa are expected to increase significantly, and reach markets such as Botswana, Egypt and Kenya. The agreement has the potential to boost intra-African trade by 52%, increase Africa’s GDP by 3%, and create 68 million jobs by 2030.
Lastly, Nigeria should enhance trade inclusivity of SMEs into the growth equation. SMEs are the backbone of the Nigerian Economy and crucial to the market’s strategy to enhance productivity and promote trade inclusivity. While the government’s plan is to increase SME contribution to the market’s GDP from 49 per cent in 2022 to 70 per cent by 2025, a lot more needs to be done in affordable credit and mainstreaming their visibility in the global marketplace through greater adoption of cross-border e-commerce platforms.
Standard Chartered Nigeria sees great promise in Africa and Nigeria’s growth prospect. With our extensive network and expertise and over 145 years of doing business in Africa, we are committed to provide tailored solutions to businesses and individuals who are taking part in the transformation we foresee. With the right policies and partnerships in place, Africa and by extension Nigeria, can unlock its full potential and drive sustainable economic growth and development.
The writer is the CEO & Head of CIB Coverage, Nigeria, Standard Chartered
