Today some African countries like Kenya, Ethiopia and Rwanda are
amongst the fastest growing economies in the world while others such as South
Africa, Morocco and Egypt, are being ranked amongst the developed economies in
Africa. In spite of the high rate of unemployment, rising debts and
dictatorship in most African countries, it has not deterred the arrival of
positive change. Although African countries in fact still have a long way to
go, it will be fallacious to say African economies are not emerging. With this
regard we will bring you some things you did not know about African economies.
1.
Agriculture will depend on Africa in the future:
The availability of about 60% of the world’s unused land is in Africa which
gives it the opportunity to develop its agriculture sector and reduce
unemployment. According to an article by Susan Lund principal at the McKinsey
Global Institute, current trends reveal that African agriculture is on course
to create 8 million wage-paying jobs between now and 2020. She goes on to say
Africa could add 6 million more jobs if policymakers could encourage expansion
of large-scale commercial farming on to uncultivated land. For this to be
however possible, African countries need to reform land rights, build up their
infrastructure and improve access to inputs such as seeds, finance and
insurance to boost agriculture. Such steps have allowed Mali, which built
integrated road, rail and sea links to transport refrigerated goods and to
increase its mango exports to the European Union six fold in just five years.
2.
African workers are better educated than ever
before: Today 40 per cent of Africans have some secondary or tertiary
education. By 2020, it will be nearly half. Trends however reveal that most
Africans are not only educated in fields which would serve post independent
Africa but, the era of complete independence. Today most African countries are
host to car assembly plants like in South Africa and Nigeria, technology
companies like Microsoft in Kenya all manned by Africans. Some African
countries have been noted for training students who have come up with great
initiatives in the fields of technology, science and business.
3.
Africa is booming: Africa has been the
second-fastest-growing region in the world over the past 10 years, with average
annual growth of 5.1 per cent over the past decade, driven by greater political
stability and economic reforms that have unleashed the private sector in many
countries. While poverty is also on the retreat, Susan Lund reports that, since
2000, 31 million African households have joined the world's consuming class. At
the point when household incomes exceed 5000 dollars measured at purchasing
power parity. In her opinion Susan says the figure is projected to reach 128
million by 2020.
4.
Africa is poised to have the largest labour
force in the world: By 2035, Africa’s labour force will be bigger than that of
any individual country in the world, which offers the continent a chance to
reap from its young and growing workers to boost economic growth in various
sectors especially technology which is one of the fastest growing sectors in
Africa and the world. Countries like Rwanda and South Africa presently can be
counted amongst the most technologically advanced in the world. This will also
go a long way to increase the spending power and financial independence which
in effect will lead to increase life expectancy and better standards of
leaving.
5.
Reforms are on-going and will attract investors:
Following the release of the World Bank’s “Ease of Doing Business” report this
year, more than 8 African countries were amongst the first 100 countries to do
business in with a couple few hovering between 100 and 120. Most of these
countries have reduced the procedures required for creating a business,
facilitation the obtaining of power supply which is vital for businesses to run
as well as reduction of time taken to import and export goods a clear example
is Mauritius which ranked 49th in the world and first in Africa.
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