gvA Update

The basis for much of the optimism that Africa is rising is that Africa has averaged a real GDP growth rate of about 5 percent of the last 10 years. The African continent also has14 of the top 30 worldâs fastest growing economies. Clearly, Sub-Saharan Africa has made significant progress in the last decade. As I have mentioned in the past, Malaria deaths in Africa declined by more than 30 percent between 2000 and 2012 and life expectancy has increased significantly. Africa is the world's second fastest-growing sub-region, behind Emerging Asia and FDI has gone from $15 billion in 2002 to about $57 billion in 2013. Even so, Africaâs apparent addiction to foreign aid betrays the continent's economic confidence. So can Africa rise when it is still dependent on financial aid. Why is Africa so dependent when it is sitting on massive amounts of mineral wealth? Certainly, African governments cannot resolve their seemingly intractable natural resource governance challenges. To top this, Africa loses twice as much in illicit financial outflows, mostly from its natural resources, as it receives in international aid. Taking together, I believe Africa is rising, but just not fast enough. It should grow at double digit rates to make the job creation and inclusive growth impact we want. Africa's share in world trade is small at less than 3 per cent. This is hardly surprising considering that the most integrated regions in the world are also the most competitive at the global level. Whereas Africa's trade with external partners, in particular with emerging economies is growing very fast, trade amongst African countries is virtually stagnant. The level of intra-trade among African countries is only about 11 percent, compared to about 70 percent in the EU, 52 percent among Asian countries, 50 percent in North America and even as much as 26 percent among South American countries. Hopefully, African leaders are taking note and will act if they want to create jobs and spread prosperity across Africa. I am Magnus Kpakol and that's my view.

 

Posted: May 19th, 2015 @ 02:31:33 AM