Business
Optimistic outlook for Africa growth to continue in the new year and beyond
A Shopper in Kampala, Uganda. PHOTO/Panos /Mikkel Ostergaard
Not too long ago, Africa was derisively referred to as the “dark continent” by many in the developed western economies.
Now, as the developed economies struggle, with Europe facing financial collapse, the United States teetering on the brink of sliding back into recession – Africa continues to experience growth. Africa is host to seven out of the top 10 fastest growing economies over the next five years.
Africa’s “lion economies” are growing more aggressively than Asia’s “tiger economies”. Africa’s collective gross domestic product (GDP) is projected to grow to US$ 2.6 trillion dollars by 2020.
Despite problems in a few countries on the continent, Africa has stepped out of the proverbial darkness and into the spotlight.
Home grown African entrepreneurs are investing, building businesses, trading and creating new jobs and opportunities. The World Bank projects that by the year 2015, 100 million Africans will have a monthly income of at least US$3,000 dollars. As a result, the spending power of the African consumer continues to grow, and by extension increasing vibrancy in the various economies.
Africa has become home to a disproportionate share of the estimated 2 billion people who have a mobile phone but no bank account. Entrepreneurial investment right across the continent has facilitated the rapid integration of mobile technology and financial products, creating a nonstop stream of new opportunities to serve the consumer, the neighborhood and the small business directly – frequently cutting costs by eliminating the bureaucratic middle man.
Investment continues to accelerate, cross-border trade flourishes, businesses diversify and achieve economies of scale.
As the year 2012 draws to a close, Africa’s best days lie ahead of her – in the coming year, and years to come.