Is Neoliberalism good for Africa?

Neoliberalism: Friend or Foe for Africa? In this thought-provoking episode of 'Leadership for Africa’s Future,' we explore the impacts of neoliberal policies on Africa's growth and the rising alternatives. Discover how public and private sectors can pave the way for sustainable development

Episode Transcript

(00:00):
Hello, and welcome back to Leadership for Africa’s Future, the podcast where we explore the dynamics shaping Africa's path forward.

I’m your host, Stephan Coridon, and today we’re tackling a big, complex question (00:07):
Is neoliberalism good for Africa? Now, if you’re wondering what “neoliberalism” even means, let’s break it down.
Neoliberalism is the idea that free markets, minimal government intervention, and privatization lead to economic growth and prosperity.

(00:29):
It’s the playbook that institutions like the IMF and the World Bank have been championing in Africa since the 1980s.
.363636364But as we sit here in 2025, looking at the challenges and opportunities facing the continent, we have to ask: has this approach really worked for Africa? On paper, neoliberalism sounds great: open up the markets, bring in foreign investments, and let the economy grow. 6 00:00:54,176.363636364 --> 00:00:57,566.363636364 And yes, some African countries have seen modest GDP growth. 7 00:00:57,816.363636364 --> 00:01:01,106.363636364 But let’s be honest, GDP doesn’t tell the whole story. 8 00:01:01,836.363636364 --> 00:01:05,542.363636364 Here are three big issues that stand out: First Inequality. 9 00:01:05,672.363636364 --> 00:01:10,892.363636364 Yes, markets are open, but who benefits? Often, it’s a small group of elites. 10 00:01:10,892.363636364 --> 00:01:14,12.363636364 For most people, wealth doesn’t trickle down—it pools at the top. 11 00:01:14,478.909090909 --> 00:01:15,978.909090909 Then, Loss of sovereignty. 12 00:01:16,638.909090909 --> 00:01:21,208.909090909 To attract foreign investors, African governments often give up control over key industries. 13 00:01:21,818.909090909 --> 00:01:25,738.909090909 This erodes local capacity and leaves us dependent on outside forces. 14 00:01:26,334.909090909 --> 00:01:28,524.909090909 To finish, Global vulnerability. 15 00:01:29,14.909090909 --> 00:01:37,34.909090909 Africa’s reliance on commodity exports means that when global markets wobble—like they did during COVID—we feel the tremors first and hardest. 16 00:01:37,626.181818182 --> 00:01:39,616.181818182 Now, let’s zoom out to the global stage. 17 00:01:40,336.18181818 --> 00:01:46,56.18181818 Neoliberalism isn’t just Africa’s challenge; it’s part of a broader system that’s being questioned worldwide. 18 00:01:46,726.18181818 --> 00:01:47,616.18181818 Look at the U.S., 19 00:01:47,616.18181818 --> 00:01:48,766.18181818 for example. 20 00:01:49,226.18181818 --> 00:01:55,156.18181818 The resurgence of Trump and his brand of economic populism signals a backlash against globalization. 21 00:01:55,405.45454545 --> 00:01:58,517.45454545 What does that mean for Africa? First, if the U.S. 22 00:01:58,517.45454545 --> 00:02:01,947.45454545 becomes more protectionist, global trade flows could shrink. 23 00:02:01,947.45454545 --> 00:02:05,407.45454545 That’s bad news for African countries that rely on exports. 24 00:02:06,53.45454545 --> 00:02:15,233.45454545 Second, as Western influence wanes, Africa has a chance to build stronger relationships with rising powers like China, India, and the Middle East. 25 00:02:15,953.45454545 --> 00:02:21,83.45454545 But these partnerships come with their own risks, like debt dependency and questions around sovereignty. 26 00:02:21,751.45454545 --> 00:02:29,51.45454545 Finally, with neoliberal policies under scrutiny globally, Africa has a golden opportunity to rethink its economic strategies. 27 00:02:29,721.45454545 --> 00:02:35,711.45454545 We can break free from one-size-fits-all solutions and design policies that truly reflect our realities. 28 00:02:36,269.45454545 --> 00:02:52,515.45454545 So, what’s the way forward? How can African leaders—both public and private—position the continent for success in this shifting landscape? Let me share a few thoughts: Let's start with Public Sector Leadership The African Continental Free Trade Area is a game-changer. 29 00:02:53,115.45454545 --> 00:02:59,425.45454545 We need to invest in making it work, reducing reliance on external markets and boosting intra-African trade. 30 00:02:59,885.45454545 --> 00:03:03,875.45454545 African governments must take control of their economic agendas. 31 00:03:04,375.45454545 --> 00:03:08,895.45454545 That means relying less on external consultants and more on homegrown solutions. 32 00:03:09,91.45454545 --> 00:03:10,991.45454545 Trust is the currency of leadership. 33 00:03:11,921.45454545 --> 00:03:15,941.45454545 We need leaders who are accountable and who genuinely serve the public good. 34 00:03:16,752.37257824 --> 00:03:24,306.37257824 What about Private Sector Leadership? I believe the future belongs to businesses that balance profit with social and environmental impact. 35 00:03:25,86.37257824 --> 00:03:27,56.37257824 Sustainabilty must be an objective. 36 00:03:27,650.37257824 --> 00:03:29,520.37257824 Tech is, for sure, the great equalizer. 37 00:03:30,70.37257824 --> 00:03:35,170.37257824 From fintech to e-commerce, digital tools can unlock opportunities across the continent. 38 00:03:35,584.37257824 --> 00:03:37,544.37257824 Let's not forget SME Support. 39 00:03:37,874.37257824 --> 00:03:41,734.37257824 Small and medium-sized enterprises are the backbone of Africa’s economy. 40 00:03:42,144.37257824 --> 00:03:45,604.37257824 Let’s support them with funding, mentorship, and market access. 41 00:03:46,135.18438152 --> 00:03:50,425.18438152 So, is neoliberalism good for Africa? The answer isn’t black or white. 42 00:03:50,735.18438152 --> 00:03:55,405.18438152 The neoliberal model has brought some benefits, but it has also exposed deep flaws. 43 00:03:55,935.18438152 --> 00:04:03,995.18438152 What’s clear is that Africa needs a model that works for Africa—a model rooted in self-determination, regional collaboration, and resilience. 44 00:04:04,591.18438152 --> 00:04:08,371.18438152 As we move toward 2025, this is Africa’s moment to lead. 45 00:04:08,641.18438152 --> 00:04:09,521.18438152 Let’s seize it. 46 00:04:09,793.18438152 --> 00:04:12,663.18438152 Thank you for listening to Leadership for Africa’s Future. 47 00:04:13,183.18438152 --> 00:04:18,613.18438152 If you enjoyed this episode, share it with your network, and let’s keep this conversation going. 48 00:04:19,53.18438152 --> 00:04:26,63.18438152 Until next time, stay resilient, stay focused, and stay committed to building a brighter future for Africa.