Following the discussions and feedback I received on my previous article about America’s aid freeze and the potential for a ‘Stars and Stripes Initiative’, one key theme stood out – Africa’s economic future cannot and should not be dictated by external forces. While the role of global powers like the U.S., China, and the EU remains significant, the real question is whether Africa can shape its own economic destiny.
Many who engaged with my article emphasised that beyond the shifting priorities of Western and Eastern partners, the continent’s success ultimately depends on strong institutions, governance, and policies that enable self-sufficiency.
For too long, Africa has been positioned as a recipient rather than a decision-maker in global economic affairs. Programmes such as PEPFAR, EU development funds, and China’s Belt and Road Initiative (BRI), have provided financing for healthcare, infrastructure, and trade, but they have not fundamentally altered Africa’s place in the global economy.
Economic power does not come from external funding – it comes from internal capacity, governance, and industrial strength. If Africa continues to rely on aid or foreign-backed investment without building strong regulatory frameworks, financial systems, and productive industries, it will remain vulnerable to shifting global priorities and policy reversals.
The African Continental Free Trade Area (AfCFTA) presents a historic opportunity to shift this dynamic. By creating the largest single market in the world, Africa has the potential to reduce dependency on external trade, strengthen regional supply chains, and foster industrial growth. But trade agreements alone are not enough.
Without institutional support, harmonised policies, and infrastructure to connect African economies, AfCFTA risks becoming an ambitious idea that fails in execution. Governments must take ownership, ensuring that regulations, legal structures, and financial systems allow businesses to scale and integrate across borders effectively.
Another key challenge raised in recent discussions is Africa’s failure to control and add value to its own resources. The continent is rich in minerals, essential for the global energy transition – cobalt, lithium, and rare earth elements – yet much of its wealth is exported in raw form and processed elsewhere. The same pattern exists in agriculture, where Africa produces vast quantities of raw commodities but imports finished goods at a premium. Without industrial policies that prioritise local processing, manufacturing, and value retention, Africa will continue to export its wealth while importing dependency.
Recent economic reports from the African Development Bank (AfDB) and the World Bank reinforce the argument that Africa’s biggest challenges are low capital formation, weak industrial growth, and an over-reliance on informal employment. While external investors pour billions into infrastructure and extraction, African businesses – especially small and medium enterprises (SMEs) – struggle to access affordable financing.
Instead of prioritising external capital flows, African governments need to develop robust domestic financial systems, strengthen regional capital markets, and create investment vehicles that channel funds into African-led enterprises. Without this, industrial growth will remain slow, and Africa will continue to be a consumer, rather than a producer, of global wealth.
Another critical element of the conversation has been governance. Many responses to my previous article highlighted how weak institutions, corruption, and policy inconsistencies deter investment and limit Africa’s ability to execute long-term economic plans.
No investor – whether foreign or domestic – can thrive in an environment where legal protections are weak, regulatory frameworks are unstable, and bureaucratic inefficiencies slow down business operations. African governments must prioritise governance as a growth strategy, ensuring that institutions function transparently, policies are predictable, and business environments are competitive.
At the same time, global partners must rethink their engagement with Africa. The U.S. appears to be shifting toward a more transactional economic model, yet details of a structured “Stars and Stripes Initiative” remain vague. China continues to dominate infrastructure investment but has yet to transition toward mutually beneficial industrial partnerships.
The EU, despite being Africa’s largest investor, remains bureaucratically slow in responding to the continent’s urgent economic needs. If the West truly wants to support Africa, it must invest in long-term capacity building, technology transfer, and financial inclusion–rather than short-term infrastructure projects and aid cycles.
Ultimately, Africa’s economic future will not be determined by the next U.S. aid decision, China’s next investment push, or Europe’s next policy update. It will be determined by whether African leaders, businesses, and institutions can build a system that enables self-sufficiency, regional integration, and sustained industrial growth. The world’s engagement with Africa must evolve, but more importantly, Africa’s engagement with itself must evolve. Economic sovereignty is not given–it is built. And the time to build is now.
JP Fabri is an applied economist and Africa-focused entrepreneur.
