Canada can be a significant player in Africa—if it wants to be

The looming return of raw nationalism to America under president-elect Donald Trump means Ottawa must embrace greater strategic autonomy in a more fractious world. Thankfully, Canada has options. Among them is engaging with Africa in ways that play to our country’s strengths. Digitalization across the world’s youngest continent is accelerating, and its financial markets are now expanding at their fastest pace since 2017. The region’s geopolitical importance is rising, too. And as western hegemony ebbs, African stakeholders are deftly courting the opportunities that come with competition. On Nov. 7, Canadian officials hosted representatives from the African Union for high-level talks in Toronto. That same day, the House Standing Committee on Foreign Affairs and International Development released a framework detailing how Canada can launch a new era of partnerships on the continent. The Canada-AU discussions—attended by Prime Minister Justin Trudeau—revealed commendable steps towards deepening engagement. Ottawa plans to open embassies in Benin and Zambia, appoint a special envoy for the continent, and establish a pan-African trade hub. A new diaspora engagement mechanism intends to harness the expertise and connections of African-linked communities and individuals in Canada. Tapfuma Musewe is the associate director of sustainable finance at EYElliance, and founder of Afrifursa. Photograph courtesy of Tapfuma Musewe There are at least 1.4 million Canadians of African origin. Many of them possess deep ties to the continent through family networks—evidenced by the $1-billion-plus in remittances sent from Canada every year. They are an untapped resource with insight into the region’s economic opportunities, emerging innovations, and everyday challenges. Kyle Hiebert is an independent analyst, and contributing writer to the Centre for International Governance Innovation. Photograph courtesy of Kyle Hiebert But while remittances are vital for immediate family support, they’re not a solution for Africa's long-term growth. Some of these transfers should be channelled toward scalable enterprises, enabling the diaspora to further participate in driving development across the continent. Other Canadian actors are overlooking opportunities in Africa, as well. According to Richard Remillard, a former executive at both Canada’s Venture Capital and Private Equity Association and the Canadian Bankers Association, this includes pension funds, the Big Six banks, and venture capital firms. Astonishingly, he writes, “there was not a single Canadian venture-capital investment in Africa in 2023.” Most foreign funding and attention for African entrepreneurs is concentrated in the financial tech sector. This has delivered massive benefits to millions of unbanked workers and business owners in the informal economy. However, there’s a need to diversify innovation by having investors look beyond emerging unicorns—startups valued at US$1-billion—toward so-called "zebras"—smaller, sustainable organizations with significant local impact. For example, three-quarters of Africa’s 100 fastest-growing companies last year had fewer than 1,000 employees at their last count. Among them were numerous health-care and life sciences companies, alongside software and IT firms, and organizations in the education and social services sectors. Companies in agriculture and mining were well represented, too. And then there’s energy. The International Energy Agency estimates the region has 60 per cent of the world’s solar potential. Yet hundreds of millions of Africans remain without power—the primary catalyst for economic growth and social mobility. In rural West Africa, the World Bank estimates less than one in 10 people has electricity in their home. This underscores the dire disparities in clean energy financing: the Global South receives around 15 per cent of investments in renewables despite accounting for two-thirds of the world’s population. Elements of the diaspora should be aided to invest in high impact opportunities such as de-centralized micro-grids. Canada should similarly mobilize private sector investments through innovative financing models that leverage sustainable development and philanthropic capital. Indeed, new data contravenes the perception of elevated risk associated with emerging markets, which are a viable option for investors seeking returns. Canadian officials have also promised to support the African Continental Free Trade Area (AfCFTA). The United States already signed a co-operation agreement with the AfCFTA in 2022. Ottawa should follow Washington’s lead, while also looking to ink foreign investment protection agreements with regional powerhouses, such as Egypt, Kenya, Ivory Coast, Nigeria, and South Africa. Such action would dovetail with the pledge by G7 countries this year to enhance the resiliency of the global economic system by emphasizing local value creation in international supply chains. Canada has everything it needs to be a significant player in Africa while generating returns for the country’s businesses and investors. All that’s missing is a cohesive strategy, and political will. Tapfuma Musewe is the associate director of sustainable finance at EYElliance, and founder of Afrifursa, an organization that connects members of the African diaspora and others with opportunities for collaboration across Africa. Kyle Hiebert is an independent analyst, and contributing writer to the Centre for International Governance Innovation, formerly based in Cape Town and Johannesburg as the deputy editor of the Africa Conflict Monitor. The Hill Times

Canada can be a significant player in Africa—if it wants to be

As western hegemony ebbs, African stakeholders are deftly courting the opportunities that come with competition.

Why growing our own food has never been more critical

ICC arrest warrant shrinks Netanyahu’s world

Stripped of remembrance

Canada must not delay action on antimicrobial resistance

It’s time to close the infrastructure gap for Indigenous communities