Sub-Saharan Africa, home to the youngest population in the world, is being urged to capitalize on the burgeoning global halal economy as a pathway to economic growth and job creation. With the halal market valued at $2.7 trillion in 2024 and expected to reach $7.7 trillion by 2025, experts believe the region is uniquely positioned to benefit from this rapidly expanding sector.
The demographic advantage is clear: 43% of the region’s population is under the age of 15, and nearly 28% is under 30. However, unemployment continues to plague the subcontinent, forcing many young people into perilous migration routes through the Sahara Desert and the Mediterranean in search of better prospects. For a region abundant in arable land and natural resources, the scale of unemployment is both an economic challenge and a missed opportunity.
The halal economy, rooted in Islamic principles of ethical and transparent business practices, extends beyond food into finance, tourism, fashion, and other sectors. This diversity presents sub-Saharan Africa with a chance to develop industries that align with cultural and economic needs while contributing to global demand for halal products.
Tapping Untapped Potential
Countries without significant Muslim populations, like Brazil and South Korea, have demonstrated the profitability of the halal economy. Brazil, for example, earns approximately $23 billion annually from halal exports. Experts argue that sub-Saharan Africa’s proximity to halal consumer markets, combined with its cultural ties, could enable it to rival and even surpass such nations.
Dr. Yahaya Yakubu, an economist at Nigeria’s Sa’adu Zungur University, notes that while the potential is vast, success requires targeted investments. “Transportation networks, cold storage facilities, and logistics must be upgraded to ensure efficient production and distribution of halal products,” he explains. He also calls for greater efforts in raising awareness among producers and consumers about the benefits and standards of halal goods.
Former Nigerian Minister of Communications Isa Ali Pantami underscores the urgency, pointing to the scale of the opportunity. “The halal economy is forecast to grow significantly, reaching $7.7 trillion by 2025. For sub-Saharan Africa, this represents an untapped source of growth,” he says.
Action Steps for Growth
To leverage the halal economy effectively, governments and private investors in sub-Saharan Africa must prioritize infrastructure development and regulatory frameworks. Public-private partnerships, incentives for investors, and collaboration with international organizations could play a critical role in fostering the sector’s growth.
In Nigeria alone, experts estimate that the halal economy could create 500,000 jobs within the next five to ten years if strategic investments are made. With its youthful population and favorable geographic location, the region is well-positioned to become a major player in the global halal market.
A Transformative Path Forward
The halal economy represents a transformative opportunity for sub-Saharan Africa to reimagine its economic future. Beyond job creation, it offers a platform to build resilient industries, diversify exports, and establish a foothold in a market expected to surpass $7 trillion by 2025. However, success hinges on decisive action—investing in infrastructure, fostering innovation, and building regional cooperation.