by LUKE ZUNGA
JOHANNESBURG, (CAJ News) – EVERY year, Davos in Switzerland hosts international gatherings of political, business and civil society leaders as well as academia.
This year the Davos Forum was held from 20 to 24 January 2026, attended by about 3,000 delegates on the theme, Collaboration in the Intelligent Age, zooming at artificial intelligence.
On 21 January 2026 United States President Donald Trump arrived to address the global forum. Amid self-praise this article picks up what is relevant for Africa and what Africa could extract and benefit from his Davos address.
Trump boasted of increasing productivity, a booming turnaround from a previous low growth period of his predecessor.
He projected gross domestic product (GDP) to exceed 5.6%. Growth is the process of producing more goods and services.
‘Economics’ is the science of production and distribution of wealth. In Africa this is often missed while pursuing administrative functions of the state.
The emphasis on GDP is important for Africa. Until the continent focuses on increasing production, the quality of life of African citizens will not improve.
Although in a rumbling speech, Trump cited 1.6% core inflation, which is low.
Inflation must be low. High inflation diminishes the value of wealth. If it is accepted that economics is production of ‘wealth’, then inflation eats away that wealth.
In many African countries inflation is high, characterized by stunted growth or stagnation.
Inflation occurs in stagnant growth.
Trump discussed how he intended to spearhead growth, by investing US$18 trillion investment in 4 years, through a range of activities and incentives, including luring companies which wish to escape tariffs by setting up their factories in the US.
This means growth goes hand in hand with increasing investing effort. Later in his speech he mocked European countries for relying on luring investors, from other lands, without their own effort.
He said, ‘Europe is dead’.
Africa is equally dead. The level of investment is so low that growth is marginal. This means the message to African countries to organize capital www.organizecapitals.com is correct and is the only way to go.
Current African policies, spearheaded by technocrats, rely on foreign investors which are technically outdated and incapable of growing economies.
Your own efforts, a country’s efforts to organize capital, is the correct way to go to grow the economy.
Trump discussed how he started to lift the living standards of US citizens. He lauded that he removed 270,000 bureaucrats or technocrats in one year.
It has been argued that bureaucrats or technocrats, the so-called professionals, are hindering growth.
They are slow, lack strategy, lack foresight and follow policies whose origin cannot be located. Trump is praising his administration for firing bureaucrats, while African governments are seized with hiring more and more such technocrats.
Politicians must not rely on technocrats. African countries must look at the problem and solve the issue, step by step.
The issue is that the number of formal businesses must be 5% of the population. Solve this.
Trump also spoke of targeted federal spending, having ploughed US$100 billion in his first year.
African governments can tailor government spending to solve specific problems, such as increasing the number of formal businesses to 5% of the population.
Trump mentioned immigration, but selective as he was closing borders for unwanted immigrants. He lauded lowering taxes as one method of pushing more investments.
High taxes dissuade investments. African governments are taxing the few businesses so much more which limits the level of further investments.
Trump spoke of cutting regulations. Where there are 100 regulations, he is cutting down to one. Later he illustrated how he is advancing investments in energy by completing approvals in 2 weeks, and three weeks for nuclear energy projects.
In Africa, the politicians designate bureaucrats to design regulations. The products are so tedious and slow, unmonitored, prohibitive and out of tune with the intentions of the country. Governments are reluctant to see the details and relax where necessary to encourage investments.
Trump spoke of increasing exports, boasting that American exports increased by US$300 billion. He said factories and plants are setting up fast, aided by quick and fast approvals.
There are incentives of 100% capital tax deduction in one year of investments made, no longer 38 to 41 years as before. He praised his tariffs policy for increasing investments and slashing trade deficits by 77%.
He emphasized on reducing the cost of living by reducing prices of energy – gas and electricity, mocking Britain and Europe for soaring electricity prices which increased by 139%.
African energy is still far behind, constrained by the way bureaucrats handle energy investments.
Growth must be central to all policies and if growth is not realized, there is something wrong to be fixed.
Donald Trump said that countries have so much potential which they are not tapping into, and that policies must take advantage of the times.
This is true for Africa; so much potential but very little outcomes and citizens are suffering.
Overall, Donald Trump’s message was that he was using unstoppable American power to push policy. He was moving to take over Greenland from Denmark.
– CAJ News