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Why Africa’s Economic Outlook is brighter than it seems

22 May

First it was Europe during the industrial revolution and long before the America was discovered, Asia was more of a jungle and Africa, the cradle of mankind habitats were still living in caves and walking half naked. it was the time for Europe to rule the world, Europeans explored the world they were at the peak of their economic superiority leading to partition and scrabble of Africa, who will have thought that one day a European nation could ever sought financial bail out from Asia, 100 years ago such a thought could’ve been absurd and stupid but its happening. Right under our very eyes china is ruling the world economically. Last time i checked around my living room everything i had was “made in china” this is the case all over the world, going back the memory lane you’d probably would have had “made in England” and later on “made in USA”. but whatever has changed…will change the world a big deal. It is very clear Asia as a continent has taken over as the next big economic power house overtaking the USA at the rate SHE grows.

Uganda’s new found source of wealth-OIL

After Europe, it was the America as continent that ruled the world economically post the world wars, that has come to pass. It’s the giant Asia taking over. I believe it will be the Sleepy Africa next in line. When Europe ruled England,Germany and France were the front runners, when the American continent took over USA lead the pack from 1930s to the 21st century, As Asia takes shape china has proved to be the captain of the game along with japan. Though there has been overlapping while one continent is taking over from the other one thing has been very clear though “The industry driving Growth” in Europe it was the cottage industries,factories and the automobile innovations, The Americans categorically specialized in revolutionizing Technology and this is likely to go on for long, they simply borrowed and built on the industrial revolution spear headed by Europe. The Americans didn’t have to reinvent the wheel. the Chinese are simply doing the same when it comes to the technology they aren’t reinventing the wheel either simply building on the American prowess as they concentrate on their main economic driving industries i.e the construction,manufacturing and farming  industries. When it comes to Africa its gonna be the Mining industry and they will build on a solid foundation built over years by predecessors in technology, manufacturing, construction and farming as all these industries have already been exploited and perfected. Africa simply has to borrow or benchmark on what has already been done.

WHY I BELIEVE AFRICA IS THE NEXT BIG THING……………

  1. Exploitation of natural resources-oil and petrol and minerals. Africa has upped its game in the exploitation of the idle natural resources ranging from oil products, Gold, copper and coal. More importantly its labor that has either been out of active production due to illiteracy or overseas looking for greener pastures.
  2. End of civil wars and political unrest- symbolizing that the population is now civilized and resolved to make life better and be tolerant to those with opposing views both politically and ideologically. The world wars made the America. The end of  China civil wars paved way for civilization of the Chinese. Africa civil wars and political unrest are slowly dying looking at countries like Angola, Rwanda,south Sudan and Democratic republic of Congo reconstruction efforts.

    The reconstruction of Angola’s capital city of Luanda

    and before the wars………………………

  3. Africa is undergoing a building and construction revolution- Roads-There has been a boom in road construction in Africa for example the super highways e.g thika super highway in Kenya, south Africa major roads projects, Railway constructions in Ethiopia and Djibouti, ports expansion in Kenya,Lamu.Symbolizing opening up of the interior land and the landlocked parts of Africa for trade and development
  4. Increased investment. foreign direct investment-Tullow oil, R.J Corp, Puma energy, Virgin airlines. China direct investment in Africa by 2005 was at $1.6 billion. Foreign direct investments play a major role in Africa’s economic development. The International Monetary Fund (IMF) has figured out that sub-Saharan African countries have seen flows increase six fold since 2000. FDI into Africa grew steadily through to 2008. It declined in 2009 and 2010 because of global economic crisis, but remained relatively strong. http://www.afribiz.net/content/the-new-normal-of-foreign-direct-investment-in-africa
  5. Innovation in Africa- who thought that an African company could spearhead an innovation that could be used in the whole world and maybe change the way we do business. Take an example of safaricom’s mobile funds transfer service -MPESA. It is turning around lives.

 

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3 Comments

Posted by on May 22, 2012 in Economical, Financial

 

Tags: , , , , , , , , , , ,

3 responses to “Why Africa’s Economic Outlook is brighter than it seems

  1. Awadhesh P Singh

    May 4, 2013 at 9:48 am

    I fully endorse the assessment.

     
  2. munchow

    July 8, 2012 at 3:58 pm

    I enjoyed reading this post about Africa’s economy.

     
  3. victor odialo

    May 22, 2012 at 4:45 pm

    True. in addition there has been a boom in housing construction in africa esp. The luxury residential units

     

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