Africa’s ample natural resources, young population and expanding middle class are set to redefine the continent’s role in global economic growth, sustainable development and the energy transition, international agency S&P Global’s latest Look Forward Journal reveals.

The ‘Look Forward: Unlocking Africa’ report brings together S&P Global research on the continent’s economic outlook, highlighting how renewable energy, sustainable and blended finance, capital market development and infrastructure investment are impacting on the continent’s future.

The report examines both the opportunities these innovations create for growth and the persistent challenges that continue to slow progress.

According to the report, faster economic growth is needed to increase upward mobility opportunities for Africa’s rapidly expanding population, and it suggests that the continent’s vast critical mineral resources could offer a path to unlocking its economic potential.

The report also underlines the importance of multilateral lending institutions, with these providing financial, technical and policy support that could strengthen Africa’s capital markets and foster long-term economic growth.

The report indicates that while blended finance models are gaining momentum as a tool to mobilise private capital for Africa’s climate and Sustainable Development Goals, there are challenges such as fragmented markets, regulatory hurdles and low investor appetite, which requires ongoing global collaboration.

The report emphasises that the continent’s considerable natural resources offer transformative potential for renewable energy; however, overcoming the financing gap will require innovative funding solutions and targeted policy support.

The report calls for institutional strategies for infrastructure success in Africa, noting that development herein hinges on robust governance, legal clarity and institutional capacity to mobilise capital and attract investment to address deficits.

It also shows that while sustainable finance is growing in Africa, volumes are insufficient to address critical development and infrastructure challenges, particularly in areas such as climate adaptation, water security and biodiversity preservation.

“Unlocking Africa's economic potential hinges on sustained global collaboration, as well its ability to harness human capital and natural resources while using new technologies to accelerate long-term sustainable development.

“The continent stands at a crossroads, needing to accelerate regional integration through trade and industrialisation while leveraging the energy transition to improve access to transport, electricity, water and digital networks for its growing population,” says S&P Global Ratings Africa research and analytics MD Samira Mensah.

The report is part of the Look Forward research series of special reports that offer a deep dive into the themes, trends and topics that are said to be transforming the global economy.