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. 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. 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 5 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.Related: The 6 Fastest Growing Economies in Africa
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.