V - business in Africa Africa also has the world’s highest percentage of young
and many African economies were opened up to
people – about 65% of the total population is under
international trade. These structural changes have
35. By 2040 the African labour force will be bigger
helped to create an environment in many African
than China’s, and by 2050 Africa will make up 25% of
countries that has invigorated markets and commerce,
the world’s workforce. Also, while the recession has put
and which is increasingly conducive to business and
the brakes on even the Asian tigers, Africa’s economies
investment. Furthermore, widespread reform, steady
have continued to expand.
improvement in political governance, the commodities
‘A third of African countries will grow at or above six
boom, substantially increased levels of disposable
percent, with some of the fastest growing ones buoyed
income, urbanisation and a rapidly developing tertiary
by new mineral exports and by factors such as the return
sector, are all contributing to a sustained and sustainable
to peace in Côte d’Ivoire, as well as strong growth in
growth path for Africa.’
countries such as Ethiopia,’ says Makhtar Diop, the World
Lalor says it’s also incorrect to think that the spurt
Bank vice president for Africa, in the organisation’s
of growth is being driven by resources. ‘Of course
‘Africa’s pulse’ report.
resources have played a part, and will continue to do so
It hasn’t happened overnight, either ‘Many African countries started implementing market
for many African countries, but they currently account for about a third of the continent’s GDP. The rest is coming from services, ICT, retail and agriculture.’
reforms in the 1990s,’ says Michael Lalor, director of
Lalor uses Ethiopia as an example. On The Economist
Ernst & Young’s Africa Business Centre. ‘Most African
magazine’s list of the world’s top 10 fastest-growing
economies have been well managed in the last decade
countries over the past decade, its success can mostly
– better managed than many European countries.’
be attributed to agriculture. By the way, that list had six
In its ‘The new Africa’ report, Ernst & Young put
African countries among the 10 fastest-growing
the changes into context. ‘The end of the Cold War
economies in the world over the past decade; and
marked a decisive shift in Africa’s prospects. Armed
seven in its top 10 of fastest-growing economies over
conflict reduced significantly, providing the relative
the next three years (Nigeria and Mozambique,
stability required for economic growth and development.
in addition to Ethiopia, are also on both lists). Also,
Inflation was brought under control, foreign debt and
the magazine predicts that over the next five years,
budget deficits were reduced, state-owned enterprises
the average African economy will grow faster than its
privatised, regulatory and legal systems strengthened,
Asian counterpart.
Modern infrastructure, luxury hotels and accessible shopping malls are the obvious signs of prosperity in African countries
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