How Europe Can Think Tutti Frutti

“Whatever happened to all the plain vanilla deals?”

I was asked this question in my early entrepreneurial days when my co-founder and I were pitching our business plan to a number of Boston-based VCs to invest in our African telecommunications venture. They were referring to their preference to invest in companies that were no more than a few hours away from the Charles River (between downtown Boston and Cambridge, where I logged in thousands, yes, thousands, of marathon training miles when I lived there).

Even back then, the plain vanilla deals were few and far between. And in the 21st century, they have gone the way of the dinosaurs – extinct. These days, if you want to thrive in emerging markets, particularly in Africa, you need to acquire a taste for tutti frutti.

That’s exactly what I like about Thami Ghorfi‘s article, “The African Challenge.” He makes this clear up front by citing the various challenges, a list that is by no means exhaustive: 54 diverse markets and complex political, economic, and social challenges.

But he immediately turns that around and asks Europe to embrace a “different” –or as I call it, “tutti frutti” – approach. He understands that if Europe wants to be a significant player in the region with the highest growth potential in the world, it needs to diversify its investment palate.

“Africa is a continent of real potential but also of great complexity. After thirty years of growth in Asia and the development of globalization, Africa is undoubtedly the new frontier for growth.”

– Thami Ghorfi

Here is my six-point starter plan for Europe to reboot, reset, and renegotiate its relationship with Africa in ways that benefit both sides:

1. Reimagining Africa-Europe Relations: Europe should shift its perception of Africa from seeing the continent merely as a source of raw materials to recognizing it as a partner capable of higher value-added production and services. This shift requires a commitment to fostering skills transfer, technological exchange, and increased investment in processing industries within Africa itself, preferably to sell to other African markets.
2. Leveraging AfCFTA for Mutual Growth: The African Continental Free Trade Area (AfCFTA) Secretariat represents a pivotal opportunity for boosting intra-regional trade, which currently stands at less than 20% of Africa’s total trade. Europe should actively support and align with AfCFTA, recognizing that increased intra-regional trade is essential for achieving economies of scale and attractive returns in Africa, which in turn can offer more stable and diversified opportunities for European (and all) businesses.
3. Infrastructure Investment as a Catalyst for Trade: The low level of intra-regional trade in Africa underscores the need for substantial investments in infrastructure. Roads, power, and fast internet are fundamental not just for attracting investments but also for building a resilient manufacturing and service ecosystem within the continent. Europe’s role in supporting these developments is crucial, as it would facilitate smoother supply chains, create jobs, and enhance regional economic integration.
4. Responding to Global Economic Shifts: With BRICS countries (Brazil, Russia, India, China, and South Africa) increasingly coordinating their economic policies, setting common standards, and discussing alternatives to the US dollar, Europe faces the risk of lagging in a rapidly changing global economic order. The initiatives by BRICS, such as the New Development Bank, challenge traditional financial institutions and frameworks dominated by the West. Europe should adapt to these shifts by fostering a more inclusive, flexible, and collaborative approach toward international development and financial cooperation.
5. The Imperative for Speed and Adaptability: The emergence of new economic powers like India and China, along with their growing influence in Africa, signals a changing geopolitical landscape. Europe cannot afford complacency. It could act swiftly to reimagine its partnerships with African nations, moving beyond aid-centric models toward legitimate economic partnerships that respect Africa’s aspirations and potential for growth, as well as policies and trade that favor Africa’s long-term growth. Think big – like a Marshall Plan (not an aid plan) for Africa – and pay it forward!
6. Embracing Complexity and Regional Dynamics: Understanding Africa’s complex market dynamics is critical. Europe could develop nuanced strategies that reflect the continent’s diverse economic, cultural, and political landscapes. This involves not only deepening economic ties but also engaging in cultural and educational exchanges that build long-term relationships and mutual understanding. Europe has played this game before – in its own back yard. European integration took decades and is still a work in progress.

Now is the moment for Europe to deepen its engagement with Africa in a manner that is meaningful, respectful, and strategic. By recognizing Africa’s growth potential, supporting regional integration via AfCFTA, investing in essential infrastructure, and adjusting to the changing global economic environment, Europe can cultivate a reciprocal partnership with Africa. Such a collaboration would not only benefit both regions but also help accelerate Africa’s moves toward greater economic integration.

Failure to act swiftly and adaptively could see Europe falling further behind in the race to tap into one of the most dynamic markets of the 21st century.

It’s time to think tutti frutti.

This article originally appeared on LinkedIn.