GCC Nations and Africa: Building Economic Bridges and Infrastructure for Mutual Growth
The Gulf Cooperation Council (GCC) member nations have the potential to significantly contribute to the development of African economies, according to a special meeting of the World Economic Forum in Riyadh.
The economic relationship between Africa and the GCC is expected to grow due to shared interests in economic diversification, investment, and sustainable development.
Central and western African countries have historically relied on Western powers for assistance but are now seeking partnerships with GCC countries, including Saudi Arabia, UAE, Qatar, Oman, and Bahrain.
This cooperation presents an opportunity for both regions to strengthen their economic ties.
The CEO of the Development Bank of Southern Africa, Boitumelo Mosako, spoke at a panel about the potential for partnerships between African countries and the Gulf Cooperation Council (GCC) states.
Mosako highlighted the symbolic connection between the two organizations, as they were both founded on Africa Day, May 25.
He emphasized the opportunity for economic development and infrastructure projects through public-private partnerships.
Mosako specifically mentioned the potential for significant growth in infrastructure as the greatest opportunity for collaboration between the two regions.
Africa aims to implement a free-trade agreement despite infrastructure challenges.
Building infrastructure projects will benefit African economies and increase exports to global partners.
Energy investment from GCC countries is an opportunity to close Africa's energy gap.
The physical distance between Africa and the GCC is small, but the investment gap is significant.
A speaker warned that by 2035, there will be a significant labor market issue in Africa with 430 million young people entering the workforce but only 100 million jobs available if current policies continue.
This situation could be a "demographic liability" leading to social unrest or a "demographic dividend" bringing economic growth, depending on external factors.
The speaker suggested that Gulf Cooperation Council (GCC) countries could play a role in addressing this issue through partnerships.