• Sunday, June 16, 2024
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The question of African economic mobility in a passport-constrained world

The question of African economic mobility in a passport-constrained world

When it comes to mobility and ease of travel, citizenship offers much more than travel documentation. For Africa, where a diverse array of passport dynamics mirrors the continent’s geopolitical landscape and historical narratives, the matter of citizenship rings particularly true. Some African nations may flaunt passports with significant visa-free privileges, but others grapple with barriers that impede their citizens’ mobility and financial opportunities.

How much economic mobility do you have as an African citizen?

The Henley Passport Power Index shows how African citizens encounter significant constraints on economic mobility due to the limitations imposed by their passports. Unlike their counterparts in nations that have stronger economies, Africans face formidable obstacles to accessing a larger slice of the global economy. Here, passports act as arbiters of financial liberty, impacting individuals’ capacities to pursue international business endeavours, establish effective networks, or tap into multinational trade prospects. Consequently, African entrepreneurs and investors often find themselves excluded from lucrative global markets, stunting their potential for economic expansion and financial success.

For instance, despite being the economic powerhouse of the continent and the wealthiest country in Africa, as revealed by the Africa Wealth Report 2024, South Africa presents an important case study for the continent’s mobility spectrum. With its passport granting access to over 100 destinations visa-free or with a visa on arrival, South Africans enjoy comparatively greater mobility. However, the gap between visa-free access and economic influence remains conspicuous—South Africa’s passport only facilitates visa-free travel for 17 percent of global GDP. This means that among the 37,400 millionaires who are residents of the country, those who only have South African passports must navigate cumbersome foreign policy hurdles to access the remaining 83 percent of the world’s economic prowess. Nigerian citizens face an even bleaker situation, with access to a mere 1.5 percent share of global GDP, highlighting the necessity for bolstered passport power, even with Nigeria sitting in the 3rd position of the Top 10 Wealthiest Countries in Africa.

How economic power plays out for African passport holders

The dearth of visa-free access impedes the flow of talent and expertise across borders, hindering collaboration and innovation both across Africa and between other continents. African professionals aspiring to advance their careers or pursue educational avenues abroad often encounter discouragement due to the arduous visa application processes and the uncertainty surrounding approvals, with Africans facing severely high rejection rates for visas to Europe’s Schengen Area. This loss of talent deprives various regions of valuable human capital and stagnates progress towards cultivating a competitive knowledge-based economy.

Africa’s passport power goes hand in hand with economic potential, shaping investment environments and business prospects. African entrepreneurs seeking channels to navigate regulatory complexities and access global markets are drawn to the possibilities afforded by investment migration, where they can receive additional residence or citizenship by making an investment in a host country.

Nevertheless, the constraints imposed by the region’s passports exacerbate the economic inequality evident on the continent. Those with the means to acquire passports or residence permits in countries with more advanced economies can circumvent these restrictions, which in turn widens the chasm between the wealthy and the majority of citizens tethered by the limitations of their passports. This dynamic worsens existing disparities and impedes efforts to foster inclusive economic development across Africa.

The quest to tackle ‘African passport (dis)empowerment’ demands concerted action at both national and international levels to dismantle travel barriers and deepen Africans’ integration into the global economy.

How Africans can transcend their passport’s limits

Opportunities for innovation and collaboration can be found despite the challenges on the continent. One such example is the African Union’s (AU) Agenda 2063, which aims to promote seamless travel and economic integration across the region, emphasising the imperative of enhancing passport strength and power. Another initiative of note is the African Continental Free Trade Area (AfCFTA), which heralds a new era of economic convergence by providing a platform to standardise passport regulations and streamline mobility across borders. Through leveraging digital technologies and forging regional alliances, Africa can forge a path towards a unified passport ecosystem, propelling economic growth and human development.

Furthermore, ambitions such as the ‘African passport’, envisaged by the AU, embody Africa’s commitment to nurturing intracontinental mobility. By facilitating visa-free travel across the continent for African citizens, the ‘African passport’ encapsulates the essence of Pan-Africanism, deepening unity and solidarity. This vision has already been embraced by Kenya and Rwanda by granting visa-free access to their countries for all African citizens—not only fortifying economic resilience but also fostering regional cohesion, aligning with the AU’s vision for a prosperous and interconnected Africa.

On an international level, wealthy African investors can mitigate the constraints of their passports by capitalising on investment migration programmes, enabling them to obtain a second passport or residence permit. By adopting this strategy, affluent African families can safeguard their assets and embrace global business, education, healthcare, and lifestyle opportunities.

The immense potential of the continent can be showcased on the global stage by providing African citizens with increased opportunities for economic advancement, be it by removing regulatory obstacles, promoting economic unity, embracing innovative local solutions, or through residence and citizenship through investment.

Chidinma Okebalama, Senior Consultant at Henley & Partners.