{"id":55542,"date":"2026-03-31T15:38:58","date_gmt":"2026-03-31T15:38:58","guid":{"rendered":"https:\/\/www.africa-press.net\/eritrea\/all-news\/africas-growth-depends-on-committed-entrepreneurs-and-investors"},"modified":"2026-03-31T17:07:43","modified_gmt":"2026-03-31T17:07:43","slug":"africas-growth-depends-on-committed-entrepreneurs-and-investors","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/eritrea\/all-news\/africas-growth-depends-on-committed-entrepreneurs-and-investors","title":{"rendered":"Africa’s Growth Depends on Committed Entrepreneurs and Investors"},"content":{"rendered":"

ABDIRASHID DUALE<\/b><\/p>\n

\n

What You Need to Know<\/h4>\n

The article discusses the critical role of committed entrepreneurs and investors in driving Africa’s economic growth, especially in the face of global trade challenges. It emphasizes the need for resilient trade routes and partnerships between local businesses and international investors to unlock Africa’s potential and ensure sustainable development.<\/p>\n<\/div>\n

Africa-Press – Eritrea. <\/strong> <\/span>The global economy is being stress-tested\u2014not by a lack of demand or capital, but by the vulnerability of the routes that connect them.<\/p>\n

From the Strait of Hormuz to the Bab al-Mandab, a handful of narrow chokepoints carry a disproportionate share of the world\u2019s energy, goods and trade.<\/p>\n

Today, that system is under strain. Rising tensions involving the United States, Israel, and Iran have already unsettled markets. Now, Yemen\u2019s Houthis have signaled their willingness to escalate and threaten shipping in the Red Sea corridor, raising the prospect that yet another critical artery of global commerce could be disrupted.<\/p>\n

The consequences are immediate: higher shipping costs, longer routes, delayed deliveries, and renewed inflationary pressure. What begins as a regional security issue quickly becomes a global economic one. Nowhere are these disruptions felt more acutely than in Africa\u2014particularly across the Horn and East Africa.<\/p>\n

Many economies in the region depend heavily on stable trade routes and predictable supply chains. When these are interrupted, the effects are swift: rising prices, constrained access to goods, and increased pressure on already fragile systems. Having witnessed conflict first-hand, I have seen how quickly instability can erode livelihoods, interrupt trade, and undermine economic confidence. In today\u2019s interconnected world, resilience is no longer optional\u2014it is a prerequisite for growth. This moment is also a reminder of Africa\u2019s strategic relevance.<\/p>\n

The Red Sea is not just a maritime passage; it is a central artery of global commerce. As risks intensify around both Hormuz and Bab al-Mandab, the importance of diversified and resilient African trade corridors becomes clearer. Ports such as Berbera and Mombasa are increasingly central to how goods move into and out of the continent. They connect landlocked markets to global supply chains, enable regional integration, and offer alternatives that reduce dependence on single routes. In a more volatile world, redundancy is not inefficiency \u2014 it is resilience.<\/p>\n

Yet infrastructure alone will not determine Africa\u2019s future. The continent\u2019s growth will ultimately be driven by its entrepreneurs\u2014a generation that is increasingly confident, globally connected, and focused on solving local challenges with scalable solutions. This was evident at the Africa Business Conference at Harvard Business School, a platform that continues to connect African talent with global capital.<\/p>\n

Across discussions in Boston, Oxford, and elsewhere, one theme is consistent: ambition is abundant, but alignment is not. Too often, global capital approaches Africa cautiously and intermittently, while local entrepreneurs operate without the sustained backing required to scale. The result is a persistent gap between potential and performance. Closing this gap requires more than dialogue. It requires commitment.<\/p>\n

More than ever, international governments and financial institutions must work in genuine partnership with indigenous companies. Local enterprises bring not only market knowledge, but also trust, networks and the operational capability to deliver in complex environments. Without this alignment, capital risks being misallocated, underutilised or disconnected from real economic impact.<\/p>\n

The African diaspora also plays a critical role. As a Somali-British business leader, I have seen how diaspora communities bridge markets, mobilise capital and transfer knowledge across borders. They combine global exposure with local understanding \u2014 a powerful combination in connecting investors with credible opportunities. Africa does not need episodic engagement driven by headlines. It needs patient capital, long-term partnerships and institutions willing to invest through cycles \u2014 not just at their peak.<\/p>\n

For decades, businesses such as Dahabshiil have operated at the intersection of global finance and local economies. One lesson is clear: resilience is built on trust, networks and consistency. This is why diaspora remittances remain among the most reliable financial flows into Africa, often exceeding foreign direct investment.<\/p>\n

They are not speculative \u2014 they are sustained and deeply embedded in communities. Africa must now shift from consumption to production. That requires expanding access to credit, strengthening financial systems, and unlocking both domestic and international investment.<\/p>\n

Local capital must be mobilised more effectively, while global investors must engage as long-term partners, not short-term participants. Trade will be central to this transformation. Strengthening intra-African commerce, improving cross-border infrastructure and deepening regional integration are essential.<\/p>\n

At the same time, capital must align with local knowledge\u2014supporting businesses capable of scaling across markets and competing globally. Encouragingly, progress is under way. Digital innovation is expanding financial inclusion. Mobile money and fintech platforms are bringing millions into the formal economy.<\/p>\n

New logistics corridors are reshaping trade patterns. Regional hubs are emerging. But momentum alone is not enough. Africa is not a short-term opportunity to be traded in moments of optimism. It is a long-term investment that requires conviction. For investors, the question is no longer whether Africa has potential \u2014 it clearly does.<\/p>\n

The question is whether they are prepared to engage with the patience and partnership that this moment demands. Africa does not need to be discovered. It needs to be understood \u2014 and backed accordingly. The opportunity is clear. The talent is proven. What remains is the willingness to commit.<\/p>\n

The author is the chief executive officer of money transfer company Dahabshiil and the Dahabshiil Group of Companies.<\/p>\n

Africa’s economic landscape has been shaped by its reliance on trade routes and the global economy. Historically, the continent has faced numerous challenges, including political instability and infrastructural deficits, which have hindered its growth. However, recent trends indicate a shift towards greater entrepreneurial activity and investment, particularly in technology and logistics, which are essential for enhancing trade and economic resilience.<\/p>\n

The importance of the African diaspora in bridging markets and mobilizing capital cannot be overstated. Their contributions have been vital in fostering connections between local businesses and global investors, creating opportunities for long<\/p>\n

Source: The Star<\/b><\/p>\n

Find more news and analyses on Eritrea<\/span> on the Africa Press<\/span> website<\/p>\n","protected":false},"excerpt":{"rendered":"

ABDIRASHID DUALE What You Need to Know The article discusses the critical role of committed entrepreneurs and investors in driving Africa’s economic growth, especially in the face of global trade challenges. It emphasizes the need for resilient trade routes and partnerships between local businesses and international investors to unlock Africa’s potential and ensure sustainable development. 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