Control Risks: Africa's post-COVID-19 landscape to present new opportunities

Global consultancy firm, Control Risks, has identified the COVID-19 pandemic, emerging digital threats, climate change, and the US-China relationship as the top five business risks for the year. Tom Griffin, Partner for Middle East and Africa at Control Risks, discussed the impact of these risks on African businesses in a recent interview with CNBC Africa. He emphasized that while these risks are present in Africa, they manifest in unique ways tailored to the region's dynamics. Griffin highlighted the positive aspects of regional cooperation in response to COVID-19 and the upcoming launch of the African Continental Free Trade Area, showcasing Africa's resilience and potential for growth. However, he also cautioned that Africa is poised to face significant challenges in the coming year. Unemployment, defaults, and sovereign debt crises are looming threats that could hinder the continent's recovery. The World Bank's projection of 60 million Africans falling into extreme poverty further underscores the severity of the economic outlook for the region. Griffin stressed the need for businesses to remain vigilant and adaptable in navigating these complex risks. The COVID-19 pandemic remains a primary concern for businesses worldwide, with Africa experiencing a long and arduous recovery process. Griffin noted that vaccine rollouts may create disparities between countries, leaving some regions in a perpetual state of COVID-19 vulnerability. As Africa grapples with the second wave of the pandemic, issues such as vaccine distribution, procurement, and corruption pose challenges to effective response efforts. The continent's economic recovery is expected to be gradual, relying heavily on underdeveloped private sectors due to limited fiscal resources. Meanwhile, the surge in digital connectivity across Africa has opened up new opportunities but also introduced cybersecurity risks. Griffin highlighted the significant increase in cybercrime during the pandemic, with criminal and state actors exploiting online platforms for misinformation and influence operations. African governments have responded by tightening regulations and monitoring online content, raising concerns about digital freedom and privacy. Control Risks has witnessed a 70% rise in cybersecurity threats across the region, underscoring the need for robust cybersecurity measures. In light of these multifaceted challenges, businesses in Africa must adopt a proactive approach to risk management and adapt to the evolving business landscape. Griffin emphasized the importance of resilience, agility, and strategic planning in mitigating global risks and leveraging opportunities for growth. By staying informed, embracing innovation, and fostering collaboration, African businesses can navigate the post-COVID-19 landscape and position themselves for sustainable success amidst uncertainty.