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Kearney: Global economy is heading into uncharted territory - CNBC Africa

Published 2 days ago2 minute read

In a recent CNBC Africa interview, Theo Sibiya, Managing Partner at Kearney Africa, discussed the findings from the latest Kearney's Global Economic Outlook for 2025–2027. The report highlights that the global economy is navigating uncharted territory, with the Middle East and Africa positioned to outpace Asia and Australasia as the fastest-growing region globally. The forecasted average growth rate of 3.6 per cent through 2027 indicates potential opportunities for South Africa and other African nations. Sibiya emphasized the significant shifts in industrial policies, geopolitical tensions, and market uncertainty that have characterized the early months of 2025. He noted a decline in global output compared to previous forecasts but pointed to the resilience and attractiveness of the Middle East and Africa in terms of growth. The interview further delved into the key drivers shaping the economic trajectory and the strategies that businesses should consider amidst ongoing uncertainties. Sibiya highlighted geopolitical risks, industrial policy changes, technological advancements, and environmental degradation as critical factors impacting markets until 2027. He advised businesses to focus on diversification, agility, innovation, and reskilling to navigate the evolving economic landscape effectively. Moreover, Sibiya discussed the emerging growth prospects in the Middle East and Africa, attributing their success to factors such as resource endowments, inter-trade activities, and favorable regulatory environments. The region's increasing attractiveness for foreign direct investment (FDI) was also analyzed, with Sibiya noting a shift towards stable assets and alternative growth markets amid global uncertainties. The African Continental Free Trade Agreement was highlighted as a key driver for enhancing intra-African trade and investment flows. Sibiya concluded the interview by expressing optimism about the future events unfolding in the region and the evolving opportunities for businesses and investors. The insights shared by Kearney Africa shed light on the dynamic economic landscape and the potential growth prospects in the emerging markets of the Middle East and Africa.

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