Africa will do well to beware of the economic clouds that are accumulating in European skies hence shore up their defences against the imminent recession in the West next year. Since Africa’s economic architecture has been pegged on the Western model, the eurozone crisis will without doubt have a negative impact on Africa. It is likely to lead to financial contagion in the banking sector; a fall in trade as countries import less; and a reduction in direct foreign investment.

While Africa may take comfort in aligning the continent with emerging economies such as Brazil, India and China to cushion itself from the effects of the crisis, settling on this option will be a palliative as opposed to a cure, as these countries will experience hiccups in future too. The crisis in the West offers Africa an opportunity to rethink its economic architecture; look inward and exploit its resources; and cultivate a critical mass of businesspeople that can supply the larger African market and the rest of the world. If African countries were to lower trade barriers, harmonize their trade licensing procedures, reduce time taken on border checks, and improve efficiency in their judiciary, business would thrive in Africa.

The future of wealth creation in Africa lies in policymakers recognizing that their countries are but provinces in a larger African continent and set up a sound economic policy. This will lead to an expanded tax base; mushrooming of hubs of economic activity and weaning from an excessive reliance on aid and the export of raw materials. Failure to do this will perpetuate the status quo that for centuries relegated the continent’s people to consumption instead of production.