This week, Business Africa highlights three significant developments shaping the continent’s economic landscape. Benin has taken a bold step in strengthening ties with CARICOM countries, aiming to foster economic cooperation and create a vibrant common market.
In South Sudan, the resumption of oil production marks a critical turning point for an economy heavily reliant on its oil sector. Meanwhile, the region continues to grapple with the economic consequences of internet shutdowns, which have caused substantial financial losses across various nations.
Benin has embarked on a strategic partnership with CARICOM (Caribbean Community) countries, signaling a new era of economic collaboration. This alliance aims to tap into shared cultural and historical ties while promoting sustainable development through green and blue economies. During a meeting held in Cotonou, Bakary Olushegun, Benin’s Minister of Foreign Affairs, outlined the country’s vision for this partnership.
“Benin and the CARICOM countries have a lot in common. We share a history marked by the transatlantic slave trade, and we have a common culture and ambition. The ambition, carried by the President since 2007, is to make CARICOM a key axis of our diplomatic strategy,” the minister stated, emphasizing the significance of this collaboration.
The focus of this collaboration extends to key sectors, including agriculture, energy, digital technologies, and manufacturing. Benin’s agricultural transformation policy aligns seamlessly with CARICOM’s development goals, promising enhanced connectivity and economic integration. The partnership also aims to unlock opportunities for young entrepreneurs and businesses across the Atlantic, leveraging the CARICOM market as a gateway to the United States.
“When we open new markets, it’s to allow young people and entrepreneurs, on both sides of the Atlantic, to seize the opportunities before them. The CARICOM market, with its 19 million people, is a gateway to the United States,” Minister Olushegun added, highlighting the immense potential this partnership holds for job creation and economic growth.
The collaboration not only strengthens economic ties but also fosters a sense of unity rooted in shared history and culture. As the partnership evolves, it is expected to create avenues for growth, innovation, and sustainable development for both regions. Enhanced cooperation is anticipated in areas such as trade, cultural exchange, and investment, paving the way for a more prosperous future.
In South Sudan, the resumption of oil production after a 10-month suspension marks a vital milestone for the nation’s economy. With oil contributing 90% of its revenue, the country has restored production to 90,000 barrels per day, following the lifting of a force majeure status. This development is expected to stabilize the nation’s economy and improve relations with neighboring Sudan.
The oil sector, often described as the lifeblood of South Sudan’s economy, plays a crucial role in funding infrastructure projects, social services, and economic development. However, challenges remain, including regional instability, internal political crises, and fluctuations in global oil markets. South Sudan’s ability to navigate these challenges will determine the long-term success of its economic recovery efforts.
While the resumption of oil production brings hope for economic revival, the country must address pressing issues such as diversification and investment in non-oil sectors. By broadening its economic base, South Sudan can build resilience and reduce its vulnerability to external shocks. Experts suggest that investing in agriculture, tourism, and renewable energy could provide sustainable alternatives to the oil-dependent economy, fostering a more balanced and resilient economic environment.
In a contrasting development, Sub-Saharan Africa has faced significant economic setbacks due to internet shutdowns. In 2024 alone, these disruptions resulted in losses amounting to $1.56 billion. Political crises, particularly in Sudan, accounted for 72% of these losses, with Ethiopia and Kenya also experiencing substantial impacts.
The economic implications of internet shutdowns extend beyond financial losses, hindering digital development, disrupting businesses, and limiting access to information. For a region striving to harness the benefits of digital transformation, these disruptions pose a significant setback. Internet shutdowns undermine innovation, restrict opportunities for youth, and erode trust in governance, exacerbating existing vulnerabilities.
Moreover, the economic consequences of these shutdowns affect various sectors, including education, healthcare, and commerce. Many businesses, particularly small and medium-sized enterprises (SMEs), rely on internet connectivity for operations and market access. The inability to operate online not only results in immediate financial losses but also hampers long-term growth prospects.
The financial toll of these shutdowns highlights the need for stronger regional and international efforts to address political instability and protect digital infrastructure. Ensuring uninterrupted access to the internet is critical for fostering economic growth, social inclusion, and global competitiveness in Sub-Saharan Africa. Governments and stakeholders must work collaboratively to create an environment that supports digital innovation and safeguards against future disruptions.
As these developments unfold, they reflect the complex interplay of opportunities and challenges shaping Africa’s economic future. Benin’s partnership with CARICOM countries demonstrates the potential of strategic alliances to drive growth and innovation. In South Sudan, the resumption of oil production underscores the importance of resource management and economic diversification. Meanwhile, addressing the impacts of internet shutdowns will be essential for unlocking the region’s digital potential and ensuring sustainable progress.
These stories illustrate the resilience and ambition of African nations as they navigate a rapidly changing global landscape. By fostering collaboration, embracing innovation, and addressing systemic challenges, the continent can build a more prosperous and inclusive future for its people. The potential for growth in the African economy remains strong, provided that nations work together to overcome obstacles and seize opportunities for development.
