Over the past ten years, Africa’s dedication to fostering viable investment opportunities has caught global attention, with Nigeria, Ghana, and neighboring countries leading the charge across diverse sectors. Notably, tourism and hospitality have emerged as powerful engines of economic transformation—both regionally and on the continental scale—drawing international and local investors alike.
Take Cape Verde, for example. Once a quiet archipelago, it has seen a tourism boom that now forms the backbone of its economy. Mauritius, another island nation, attributes around 24% of its GDP to tourism, according to official government statistics. Closer to home, Ghana made headlines in 2019 with its “Year of Return” campaign, an initiative that went viral across social media and international news outlets. This campaign, designed to bring diaspora communities and global travelers home, not only boosted tourism’s share of the GDP to approximately 5.5% (Ghana Statistical Service, 2019) but also helped reposition West Africa as a destination brimming with history, culture, and modern adventure.
Prior to the COVID-19 pandemic, Africa was already ranked as the world’s second-fastest growing tourism region, achieving an impressive 5.6% annual growth rate—surpassing the global average. However, like everywhere else, the pandemic brought international travel and hospitality revenue to a near standstill. With borders closing and global fear rising, conversations in boardrooms from Lagos to Accra turned to the continent’s recovery. Could domestic tourism fill the gap? And how might the African Continental Free Trade Area (AfCFTA) agreement accelerate regional connectivity for travelers and entrepreneurs?
The AfCFTA: Connecting Local Value Chains Across Africa
The AfCFTA opens up a potential market comprising more than 1.2 billion people, representing a collective GDP of about $2.5 trillion across 55 African Union member states (African Union, 2023). The goal is broader than increased trade—it aims to integrate economies, stimulate the movement of people and goods, and encourage intra-African migration for both work and leisure.
This free flow is expected to unlock substantial value for businesses large and small. In Nigeria, for instance, family-owned investment firms are reportedly positioning themselves to take advantage of these opportunities by expanding into previously untapped sectors. The hospitality industry is a strong example—once dominated primarily by hotels, it is now experiencing diversification thanks to digital innovation and the younger, tech-savvy demographic’s appetite for experiential travel.
According to a spokesperson for Transcorp Hotels—a key player in Nigerian and West African hospitality—digital transformation is driving competition and broadening the array of lifestyle products available to local tourists. Platforms such as Aura by Transcorp are redefining how people discover, book, and enjoy hospitality experiences. With intuitive mobile interfaces, users can book accommodations, restaurants, and unique local experiences on-the-go, supporting the vision of a borderless marketplace for leisure and tourism across Africa (Transcorp Hotels).
Importantly, tools like Aura are not only helping Nigerians and West Africans find new local destinations but also empowering thousands of partners—including homeowners, small hoteliers, restaurateurs, and experience providers—to generate income in ways that were previously inaccessible. By prioritizing listings from underrepresented communities and curating experiences that showcase local culture, these platforms drive economic growth at the grassroots level. Over time, experts say such approaches could sustainably increase Africa’s share in global and regional tourism revenue streams.
Bridging the Access Gap in Regional Tourism
In 2019, Africa received nearly 70 million international tourists—an indicator of its growing desirability as a travel destination (UNWTO, 2020). Yet, within the continent, Africans themselves still face significant hurdles when attempting to visit neighboring countries. Visa restrictions, limited flight networks, and insufficient infrastructure hamper the ability of locals to explore West Africa’s diverse cultures and heritage sites.
“We often talk about international arrivals, but for many Nigerians or Ghanaians, traveling just a few hours across the border can be more complicated than visiting Europe,” says Femi Adekunle, a travel consultant based in Abuja. In many cases, inter-regional travel requires lengthy visa applications or, perplexingly, routing through Europe to catch connecting flights back to Africa—a logistical and financial burden for individuals and businesses alike.
Local policy reforms could provide solutions. For instance, Ghana’s government, during its “Year of Return” campaign, waived some visa requirements and amended legislation to make it easier for people of African descent to live and work in the country. Experts suggest that more regional flight hubs, especially in West Africa, are long overdue. Currently, airlines like TAP Air Portugal provide one of the few direct connections between African cities and Europe, underscoring the need for continental carriers to expand their networks within Africa.
Another promising approach is for regional organizations to facilitate cross-border tourism initiatives—from showcasing enchanting destinations at exhibitions to forming partnerships that create seamless travel for West Africans. These efforts would support AfCFTA’s goals, helping to close the connectivity gap that stalls economic and cultural exchange.
Industry Diversification: Adapting to a New Hospitality Landscape
The economic shock of COVID-19 led to an estimated $50 billion loss in Africa’s tourism sector (African Development Bank, 2021), upending livelihoods from Lagos beach resorts to Ghanaian art markets. The path to recovery means more than recouping lost revenue; it also involves re-imagining what hospitality means in a changed world.
According to Ifeoma Eke, a hospitality analyst in Lagos, “The industry has responded by pivoting towards local markets, investing in non-traditional offerings, and leveraging technology.” Transcorp Hotels, for example, has rolled out drive-through cinemas, home laundry services, and premium food delivery—initiatives designed to appeal to local guests and create unique experiences. The launch of Workspace by Transcorp Hotels further signals an interest in merging hospitality with business, providing flexible coworking and event spaces tailored to corporate clients.
Towards Recovery: Digital Innovation and Regional Integration
As economies across Africa begin to rebound, digital platforms are poised to bridge longstanding gaps in the tourism and hospitality markets. With the continent recording one of the world’s fastest rates of mobile adoption, tech-driven solutions such as Aura by Transcorp could unlock new possibilities for young, upwardly mobile Africans and entrepreneurs. These digital tools not only make travel more accessible but also widen the market for regional integration, aligning perfectly with the ambitions of the AfCFTA agreement.
The AfCFTA, widely lauded as a transformative deal, is projected to increase intra-African trade by up to 50% by 2030 (AfCFTA Secretariat, 2022). Realizing this potential depends on enabling environments for small and medium-sized enterprises, diversifying supply chains, and establishing industry value chains that are both regional and locally anchored. For tourism and hospitality, this means highlighting homegrown approaches, fostering collaborations between businesses across borders, and building a marketplace where African entrepreneurs thrive alongside their global peers.
Yet, significant hurdles remain. Visa liberalization, connectivity infrastructure, and grassroots investment all require focused policy action and private sector commitment. As Nigeria, Ghana, and other West African nations position themselves as tourism and business hubs, success will hinge on not just promoting international arrivals, but also empowering Africans to explore and build within their own continent.
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