
Writer: Andrew Rugasira. PHOTO/COURTESY
The Economist’s recent article, “Africa Needs a Capitalist Revolution,” reflects their trend of oversimplified and paternalistic commentary on Africa. In May 2000, the same publication infamously declared on its cover, “The Hopeless Continent” with an image of Africa and a picture inset of a bleached looking rebel with a bazooka. The article portrayed Africa as a region devoid of agency, potential, hope.
Two decades later, the narrative has shifted, but only slightly. Africa is now framed as capable of progress—if it adopts Western ideologies. Both narratives diminish Africa’s achievements and ignore the continent’s agency.
While the latest article acknowledges the need for economic transformation, its prescription for a capitalist revolution reads like a tired lecture from an aging professor whose students have already moved on. It is not Africa, but The Economist, that needs a reality check.
It is ironic for The Economist to urge Africa to embrace wholesale capitalism while glossing over the systemic failures of capitalism in the very economies it celebrates. The 2008 financial crisis, triggered by corporate greed and deregulated markets, left millions with lost savings, unemployed and caused years of economic stagnation.
Today, Europe’s economic powerhouses face stagnant productivity, rising inequality, and political instability, fueled by disillusionment with the very capitalist systems the article promotes for Africa.
The eurozone’s persistent debt crises, from Greece to Italy, expose the fragility of these systems. Meanwhile, populist movements in the West reflect widespread dissatisfaction with economies that prioritize elite interests over those of ordinary citizens.
So, this advice rings hollow in the face of persistent economic stagnation and inequality. If capitalism is failing to deliver sustainable growth in the Global North, why should Africa unquestioningly adopt it?
Africa’s economic challenges are not only the result of internal mismanagement, as the article implies, but fundamentally the exploitative global systems they operate in. Despite being home to 30% of the world’s mineral wealth, Africa contributes only 3% to global GDP.
This disparity is the result of centuries of extractive economic relationships that prioritize raw material exports over value-added production. These structures leave African economies vulnerable to price shocks and perpetuate dependence on foreign markets with very limited domestic value addition.
Compounding this issue is the global financial system, which drains Africa’s resources through unsustainable debt. Sub-Saharan Africa spends $25 billion annually on external debt servicing, funds that could otherwise fuel investments in education, healthcare, and infrastructure. Yet The Economist offers no solutions to these systemic injustices, opting instead for a one-size-fits-all prescription of capitalism.
Contrary to the narrative of stagnation, Africa is already charting a path toward transformation, even as it continues to address significant challenges. Of the world’s fastest-growing economies, several are in Africa—Ethiopia, Tanzania, Senegal, Niger, Djibouti and Uganda.
These nations have pioneered innovative models of growth, blending market reforms with state-led interventions. Ethiopia’s industrial parks have catalyzed manufacturing and job creation, while Tanzania and Rwanda have focused on significant infrastructure projects and human capital development.
In technology, Africa is a global leader in innovation. Kenya’s M-Pesa revolutionized mobile banking, enabling financial inclusion with over 60 million transactions a day, impacting millions of lives. The African Continental Free Trade Area (AfCFTA) is creating the largest single market in the world, with a combined GDP of $3.4 trillion, offering unprecedented opportunities for trade and industrialization. African nations are also leading in renewable energy, with Morocco, Kenya, and South Africa spearheading investments in solar, wind, and geothermal power.
Despite these successes, The Economist dismisses Africa’s informal economies—employing 80% of the workforce—as inefficient and outdated. This perspective reflects a failure to understand the resilience and ingenuity of these sectors, which sustain millions despite minimal support. Rather than condemning them, policymakers should focus on integrating and formalizing these sectors through inclusive financing and infrastructure investments.
Africa does not need a “capitalist revolution” imposed from abroad. What it requires are homegrown policies that address its unique challenges and leverage its strengths. Industrialization, investments in education, and equitable partnerships with global markets must form the foundation of its development. Africa needs leaders who can drive innovation and lead with bold, context-specific solutions.
Africa’s future lies not in mimicking Western capitalism but in crafting its own path to sustainable and inclusive growth. This requires addressing structural inequalities, prioritizing value-added industries, and investing in education and healthcare. Equally, global partners must engage Africa on equitable terms, ensuring fair trade, debt relief, and better access to capital markets.
Africa is already demonstrating its potential through vibrant tech ecosystems, renewable energy investments, and regional integration efforts. What it needs now is not more tired lectures from Western commentators but bold, African-led solutions supported by fair and just global partnerships.
Instead of prescribing a capitalist revolution, The Economist would do better to confront the failings of its own systems and advocate for global reforms that enable Africa to thrive on its own terms. Africa does not need another lecture about capitalism—it needs equity, agency, and respect.
Andrew Rugasira is a Social Entrepreneur and Author.