Africa’s economic landscape is complex, marked by both opportunities and profound challenges. Rising costs of living, fueled by inflation, currency depreciation, and unemployment, have made it difficult for many Africans to meet basic needs. Research highlights how these economic pressures are pushing individuals and families to seek alternatives, such as migration, while also emphasizing potential solutions through innovation, entrepreneurship, and intra-African collaboration.
The Weight of Inflation and Currency Depreciation
Inflation and currency depreciation are key factors driving up the cost of living in several African countries. In Zimbabwe, teachers have been protesting for higher wages as inflation erodes their purchasing power, and the devaluation of the Zimbabwean dollar (ZiG) worsens their financial situations. Teachers are demanding a minimum wage of US $1,260 per month to meet basic needs, yet the government has only offered small increases and a 13th paycheck. This situation exemplifies how economic instability affects not just individuals but also entire sectors reliant on stable income and purchasing power.
Similarly, Nigeria has been grappling with the depreciation of its currency, the Naira. This depreciation has had widespread economic consequences, including for business moguls like Aliko Dangote, whose net worth fluctuates due to Nigeria’s unstable economy and rampant inflation. The cost of imported goods has risen, making basic commodities unaffordable for many.
Gambia faces its own unique struggles, where the impact of climate change, combined with outdated farming practices, has made traditional livelihoods unsustainable. This has forced many young Gambians to seek better opportunities abroad. The World Bank reports that 75% of Gambia’s population lives in poverty, with reliance on imported goods driving up the cost of living. Migration has become a key lifeline for some, but it also comes with risks, as families often face separation and dangerous journeys.
The Struggle for Basic Needs and the Allure of Migration
Across Africa, high living costs are pushing families to make difficult decisions. In Gambia, remittances from relatives abroad offer financial relief, yet this comes at the cost of long-term family separation and exposure to hazardous migration routes. The pursuit of better prospects, often described as chasing the American Dream, has led many, like Geraldina Adang, to endure dangerous journeys. Her two-month trek from Brazil to Mexico and a three-month wait at the US border illustrate the desperation felt by many seeking stability abroad.
In Equatorial Guinea, economic downturns since the 2014 oil price collapse have left young people disillusioned. They now view migration as a chance to escape an uncertain future, even if it means accepting low-paying jobs in the U.S. However, as seen in the YouTube video documenting West African migrants in New York, many face significant challenges upon arrival, such as navigating shelter systems, overcoming language barriers, and adapting to cultural differences.
Hope on the Horizon?
Despite these economic hardships, there are signs of hope and emerging solutions to Africa’s financial challenges. Programs like Google’s AI Accelerator for African Startups provide resources, mentorship, and technological access to young entrepreneurs. These initiatives aim to foster local innovation and address continent-specific challenges, offering an alternative path to success without the need to migrate.
Entrepreneurs like Ayobami Akindipe, who focuses on affordable housing in Nigeria, and the founders of Wowzi, who connect influencers with brands across Africa, are proof that homegrown ventures can flourish. These success stories highlight the potential of local knowledge and innovative solutions in creating economic opportunities within the continent.
Efforts to boost intra-African trade through the African Continental Free Trade Area (AfCFTA) are also making a difference. The development of a new app to reduce trade barriers demonstrates the continent’s commitment to enhancing commerce, which could unlock vast economic potential. This focus on improving trade flows is crucial for long-term growth and stability.
Investment in key sectors like agriculture is another promising strategy. Collaborative efforts between NGOs and governments, such as in Nigeria, aim to empower youth and women in agriculture, helping to secure food supplies and provide livelihoods. By offering training, financial access, and support for young entrepreneurs, these initiatives can transform agriculture into a more resilient and profitable sector.
The rising cost of living across Africa, driven by inflation, currency depreciation, and unemployment, has created widespread hardship. Yet, amid these challenges, there are growing efforts to foster innovation, promote entrepreneurship, and strengthen intra-African trade. These strategies, combined with investments in key sectors like agriculture, offer hope for a more prosperous and equitable future for Africans. By addressing the continent’s unique challenges from within, Africa’s economic landscape could be navigated in ways that benefit all its people.
