fofack22_PeopleImagesGetty Images_africabusinesswoman PeopleImages/Getty Images

Africa Needs an Entrepreneurial Boom

The dearth of entrepreneurs has long been a binding constraint on Africa's economic development. To remedy it, African governments should foster business environments that ensure a level playing field and coordinate their actions at the regional and continental level.

CAMBRIDGE – For decades, Africa has been the world’s most commodity-dependent continent. At the same time, it has become overly reliant on imports from the rest of the world: intracontinental trade accounts for only 15% of total African trade, compared to 60% in Asia and 70% in the European Union. Worryingly, imports of manufactured goods into African countries have grown by more than 25% over the decade ending in 2022.