Private Sector Solutions to Africa’s Displacement Crisis [Business Africa]

By Rédaction Africa Links 24 with Africanews
Published on 2024-01-19 10:10:26

The displacement crisis in Africa has surged, with the number of forcibly displaced persons (FDPs) increasing from 36 million in 2021 to 45 million in 2023. This crisis goes beyond immediate humanitarian concerns, exerting a profound economic impact on regions already contending with instability.

The conflict in Sudan serves as an example, with predictions of a 12% economic decline. This not only affects Sudan but also has consequences on neighbouring nations, disrupting global commodity markets. The interruption of trade between Sudan and Egypt, reduced Ugandan coffee imports, and the disruption of air routes for Nigerian carriers highlight the widespread economic repercussions.

The private sector’s involvement in areas hosting refugees or Internally Displaced Persons (IDPs) is crucial. Mr. Isaac Kwaku Fokuo, co-founder of the Amahoro coalition, shared insights into the economic impact of the displacement crisis in Africa and the role the private sector can play in mitigating these challenges.

Fokuo emphasized the significant economic losses on the continent, often overlooked in discussions that tend to focus on the humanitarian aspect. In Sudan, there will be a substantial 12% decrease in the economy in 2023, impacting numerous neighbouring nations. Civil unrest in Sudan has led to a decline in Kenya’s tea exports, affecting employment and GDP.

Private sector-led intervention can address the crisis, as it plays a pivotal role in stabilizing nation-states, investing in economic activity, the future workforce, and ensuring collective progress for Africa.

Fokuo highlighted the need for African-led conversations and collaborations with international partners to ensure sustainability, with businesses investing in conflict areas contributing to the infrastructure of those countries for smoother business operations.

Beyond the displacement crisis, the Africa Cup of Nations (AFCON) 2024 is emerging as a significant economic catalyst for the Ivory Coast, creating a positive impact on various sectors. The tournament has sparked heightened demand for extraordinary experiences, prompting entrepreneurs to strategically leverage this opportune moment.

Conversely, Angola has decided to exit OPEC due to disagreements over oil production quotas. This unexpected departure has triggered geopolitical ripples and raised concerns about its impact on the international oil landscape and broader dynamics within OPEC and OPEC+.