Business
Africa economic growth real and sustainable – Institute of International Finance
“Moody’s believes that Africa’s growth will be characterized by increasing utilization of international capital market finance,” Jacques Els of Moody’s South Africa said.
Such a trend might have been unthinkable just a decade ago, when debt relief and aid for African nations topped the headlines.
But the IIF also warned that African governments must keep on their toes.
“We should keep in mind that Africa’s recent strong performance has been materially aided by massive debt relief and a sustained commodity boom. The future global environment may not be so accommodating,” said Abed.
Continued political stability will also be key, he argued.
Yet the foundations appear to be in place for Africa to experience the type of transformative growth previously enjoyed by South East Asia and Latin America.
A report by McKinsey consultants, also released on Wednesday, noted African households were becoming ever-richer as the continent’s economies surged forward, offering enormous untapped growth opportunities for consumer companies.
A McKinsey & Company study showed 84 percent of Africans were “exceptionally optimistic about their economic future” — with urban Africans already spending more on apparel and food than those in Brazil, China and India on average.
Copyright 2012 AFP
