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Africa has infinite potential. With numerous resources, an improving business climate and better economic governance, the numbers showing growth have been very positive. This presentation covers topics that speak on Africa's growth and where it can go. Here's a few stats that show how well the continent is doing:
A report from the African development bank said 33% of Africa's countries have GDP growth rates higher than 6%.
The costs of starting a business dropped upwards of 66% over the last 7 years.
The continent's middle class is growing at a very quick rate - approximately 350 million Africans now earn between $2 and $20 a day.
The share of the population living below the poverty line in Africa has dropped from 51% in 2005 to 39% in 2012.
Africa's collective GDP was $1.6 trillion in 2008, which was roughly equal to Brazil and Russia's GDP.
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2. What’s Africa Like?
With numerous resources, an improving business climate and better economic
governance, the numbers showing growth have been very positive in Africa. Here's a few
stats that show how well the continent is doing:
A report from the African development bank said 33% of Africa's countries have GDP growth rates higher than
6%.
The costs of starting a business dropped upwards of 66% over the last 7 years.
The continent's middle class is growing at a very quick rate - approximately 350 million Africans now earn
between $2 and $20 a day.
The share of the population living below the poverty line in Africa has dropped from 51% in 2005 to 39% in 2012.
Africa's collective GDP was $1.6 trillion in 2008, which was roughly equal to Brazil and Russia's GDP.
3. Rise of Commodity Prices
The African continent has benefited greatly due to the rise in
commodity prices in the last 10 years.
In 1999, the price of oil was $20 a barrel. 9 years later in
2008, it was $145.
Prices of minerals, grain and other raw materials have also
soared due to their increased global demand.
4. What about the War and Corruption?
As we all know, Africa has been a continent afflicted by war and corruption in
which countries have suffered significantly. Loss of lives and infrastructure set
countries back 50-100 years.
Fortunately, the amount of wars and unrest in African countries has dropped
recently and governments have taken action to end armed conflicts, leading to
an improvement of conditions.
Macroeconomic conditions got better and microeconomic reforms were
undertaken to create a better business climate. A lot of countries stopped their
deadly hostilities and created political stability to reinvigorate economic growth.
African economies also improved when governments reduced the average
inflation rate from 22% in the 1990s to 8% in 2000. They trimmed their foreign
debt by 25% and reduced their budget deficits by 66%.
6. What was the Government’s role?
Governments in the continent adopted more and more policies to energize
their markets.
They privatized state owned enterprises, increased the openness of trade,
lowered corporate taxes, strengthened regulatory and legal systems and
provided crucial physical and social infrastructure.
For example, Nigeria privatized more than 116 enterprises between 1999 and
2006 and Morocco and Egypt signed free trade agreements with major export
partners.
7. Could This All Just Be A Bubble?
Well, it could be. But I don't think so.
They say that Africa grew exponentially from the oil boom in the 1970s and
then everything came down quickly once oil and other commodity prices dropped
in the next 20 years.
This could happen again, but I think the continent has learned its lesson and
has positive long-term prospects for growth because of the external trends in the
global economy and the positive changes the continent is making in regards to
its societies and economies.
8. They Say China Had a Big Role
Anyone that has lived in Africa within the past 15 years can tell you that China
has a big influence on the region.
There were an estimated 1 million Chinese workers in Africa contributing to
trade of about $200 billion in 2013.
The Chinese investment has allowed Africa to get key infrastructure built such
as roads and the implementation of 21st century technology.
This all has lead to people being confident in doing business in Africa.
11. Is There Anything Else?
The growth has been uneven with inequality rising in many areas.
Millions of people are still living in extreme poverty and even though violence
has decreased, you have to still remember the brutal and tragic violence going
on in the Central African Republic, South Sudan and Nigeria.
Sure, the middle class has grown quickly but so has the overall population
meaning that the amount of impoverished Africans has also gone up at the same
time.
12. Any Last Closing Remarks?
In my opinion (and you don't have to agree with me), I believe that if
industries continue grow, there will be more jobs created and the number of
middle class citizens will be higher than the impoverished ones.
It is hopeful, I get it, but I really do think it is possible.
Education will play a major factor.
13. What Were Your Sources?
The New York Times
The Brookings Institution
Mckinsey&Company Forbes
BBC News
14. Who Are You?
Hasnain Raza
Grew up and spent 13 years in Africa
Graduate from the School of Communication at Simon Fraser
University
Currently living in Vancouver, BC
Professional Digital Marketer
www.hasnainmraza.com
@hasnainr9