Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

I am a frontier markets expert with specialisation in Africa. My professional background spans three distinct domains – media, consultancy, and academia. I currently serve as the Director of the NTU-SBF Centre for African Studies at the Nanyang Business School in Singapore. The NTU-SBF Centre for African Studies is the only research centre in South-East Asia that looks at Africa from a trade, business, and investment perspective.

Q2. How do you see the trajectory of Africa’s economic transformation unfolding over the next few years, and what market signals most strongly indicate the direction of this shift?

Africa is undergoing an economic transformation that is unparalleled in its history. In some ways, it is very similar to that of India’s. First, it is urbanising rapidly. Africa is the world's fastest urbanising continent today. That means cities are fast becoming the engines of growth. So, consumption of urban goods like cars, air conditioners, two-wheelers, and white goods is growing. Although Africa has not yet become a consumption-led economy like India, its urban areas indeed mimic those characteristics. Second, African governments are trying to reduce their dependence on primary commodity exports and are renegotiating mining contracts. This is not an easy process and will take a while to complete, but the intent is clear. Africa no longer wishes to remain stuck at the bottom of the global value chain. Third, complex infrastructure across the continent is improving rapidly. That is reducing logistics costs and making it easier to do business both within and across borders. Combine all of this with a youthful, energetic, and growing population, and the acceleration of economic growth looks unstoppable. The strongest market signal is the bullish sentiment about Africa. Investors are starting to look at Africa seriously. Multinationals that previously abandoned Africa are considering returning. Bonds are frequently oversubscribed, and capital-intensive projects such as those in agriculture, energy, and infrastructure are no longer short of finance.

Q3. How are changing demographics, urbanisation, and digital adoption influencing the shape of consumer and industrial demand across African regions?

Some of this I have already explained earlier. But Africa's youthful population is driving a consumer boom not dissimilar to Asia's. In other words, the young in Mombasa are as digitally savvy as the young in Mumbai. They are as fashionable. And they have the same aspirations. So, for example, if you are in retail, you can run a barista or a bar as you do in Mumbai. Africans are hungry for know-how and eager to learn. They turn to the internet for information just as anyone else does. And just like Indians, most are smartphone-ready digital natives. It is this same 2.5 * 6 * 6-inch digital screen window that is shaping their consumer demand. But mind you, I am mainly talking about the urban consumer behaviour here. In much of Africa, grid power remains out of reach. But the electricity demand is driving sales of rooftop solar panels through the roof (pun intended!). The most significant industrial demand emerging is in the food processing, FMCG packaging, and logistics sectors.

Q4. How do you see policy reform and the AfCFTA influencing market integration and cross-border trade flows, particularly for fast-growing industries?

The African Continental Free Trade Area (AfCFTA) is the most ambitious single-market experiment in the world today. It seeks to boost economic growth and employment by eliminating tariffs and non-tariff barriers. Intra-African trade still accounts for only 14.4% of the region’s formal trade. If fully implemented, the AfCFTA could boost intra-African trade by about 33%, boost African GDP by 7% (US$450bn), and pull 30 million people out of extreme poverty by 2035. Sectors that stand to benefit most from the full implementation of the AfCFTA include agro-processing, automotive, pharmaceuticals, logistics, light manufacturing, textiles, apparel, financial services, telecommunications, and travel and tourism. 
Since the agreement’s operational launch in 2021, most activity has taken place under the Guided Trade Initiative (GTI) – a pilot launched in October 2022 to demonstrate that AfCFTA trade is feasible. The GTI initially covered only eight countries and a narrow set of products for which rules of origin – criteria used to determine where a product is made for tariff purposes – had been finalised. By the end of 2024, participation in the GTI had expanded to 39 countries, with most having finalised tariff schedules and updated customs systems to enable trading under the scheme. Despite recent momentum, AfCFTA still faces a series of technical, logistical, and administrative hurdles. Slow customs procedures and inconsistent regulations continue to restrict trade flows, limiting the benefits of tariff reductions. Infrastructure gaps – in roads, ports, power, and digital connectivity – also hinder the movement of goods and services. In addition, not all member countries have yet harmonised tariff schedules or established systems for verifying rules of origin. Such bottlenecks notwithstanding, the AfCFTA demonstrates a deep-seated African desire to merge their fragmented economies into one and, by doing so, overturn a colonial-era handicap that has impoverished a prosperous continent.
 

Q5. What emerging sectors or technologies do you believe are quietly building momentum beneath the surface and may become major growth engines over the next decade?

Africa is well-positioned to contribute to the fourth industrial revolution. It is well endowed with critical minerals necessary for the build-out of infrastructure to power the next phase of the digital revolution. The continent is projected to experience the fastest growth in AI spending globally - reaching US$6.4 bn by 2026. As AI becomes more mainstream, data and its ownership will become even more critical. African governments now recognise the need to retain control over their own data. Retaining data on the continent, however, means having more data centres. But of the 8000+ data centres that power our digital workspace today, Africa is home to only 152. And most of those have a capacity of no more than 50MW each. Africa today accounts for only 0.4% of the world's total installed data centre capacity. But this is expected to change. Demand for data centre capacity in Africa could grow up to 2GW by 2030, requiring at least US$10bn in new investment in the building shells alone. Not to mention the equipment's capital cost. Besides data centres, Africa’s digital transformation offers immense opportunities across other sectors, including healthcare, agriculture, education, banking, transportation, and logistics.
 

Q6. What shifts are you seeing in how global corporations evaluate risk vs. opportunity in African markets, and how is this reshaping the competitive landscape?

Global multinationals have still not made the transition from taking a serious look at Africa to becoming serious investors themselves. This is particularly true of Western firms. Africa accounts for 3% of world GDP but attracts less than 1% of private equity capital. That space has been left open to African investors – both at home and abroad. It is men like Patrice Motsepe, Aliko Dangote, and Strive Masiyiwa who are reshaping the continent's competitive landscape. They are boldly investing in sectors that outsiders are scared to touch. The story is much the same in the banking sector, where local and regional banks have replaced foreign banks. It is their activity that is reshaping the competitive landscape of the African financial sector.

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

What is your strategy for Africa, the last frontier market in the world that can still offer double-digit returns?