IMPROVED ECONOMIC AND GOVERNANCE CONDITIONS AS A NEW FRAMEWORK FOR DOING BUSINESS IN AFRICA Dr Adeyemi Dipeolu Chief of Staff UN Economic Commission for Africa
Outline Introduction Africa’s Compelling Economic Performance Africa Attracting Attention Underlying Factors for Improved Performance Drivers of Growth in Africa Assessing and Mitigating Downside Risks
Africa’s Compelling Economic Performance The African economic outlook is robust. o Average growth in 2011 is estimated at 4.7% as compared to 2.3% in 2009 o The African economy was relatively resilient during the global crisis o The average growth rate since the turn of the Millennium is over 5% per annum compared to less than 2% in 1980s and 1990s o Positive scenario expects growth rate to pick‐up in coming years
Africa Attracting Attention Africa’s economic performance has attracted attention o Compelling research reports on Africa’s improved prospects by global strategy companies o Six African countries were among the ten fastest growing economies in the world between 2001‐2010 o Rate of return on investment in Africa higher than in other parts of the world o The G20 recognized Africa as a potential global growth pole at its 2010 Seoul Summit
Factors Underlying Improved Performance Africa in the Driving Seat o Better economic management o Improved governance conditions o Commitment to Regional Integration o Africans investing in Africa
Contribution of the International Community o The international community has also aided Africa’s improved prospects o Increasing demand for scarce natural resources
Drivers of Growth in Africa Nearly all sectors have contributed to Africa’s improved economic performance African economic performance will be boosted by changing demographics, green growth and increased digitalization Growth and long‐term demand from emerging economies will continue to propel growth in Africa Africa is the new frontier for sunset industries Regional Integration and trade facilitation will require first class infrastructure and cutting‐edge logistical services
Assessing and Mitigating Downside Risks Some risks can dampen the positive outlook for the African economy o Uncertain global economic outlook o Unemployment problem o Unfamiliar business environment o Climate change
The End Please visit the Economic Commission for Africa website at:
www.uneca.org Thank you