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Cumartesi, Temmuz 13, 2024

African Economy Is Growing

Africa becomes competitive among developed countries with its thriving economy. Africa, having entered in the growth process upon discovering its own potential power, brings up great hopes for future generations.

Growth Estimation

It is estimated that total economic magnitude of the area described as Sub-Saharan Africa will reach 2.6 trillion dollars in 2020. Experts envisage that world’s 7 out of 10 fastest growing countries by 2015 will be from Africa and economic growth in Africa will unmark Asia.

Total foreign investment amount which was 10 billion dollars in 2000 became 80 billion dollars in 2010. It is expected that direct investments promoted in Africa will reach 120 billion dollars in 2015.

With an intention to give foreign investors coming to Africa a lead, potential fields of investment have to be underlined and investors have to be directed.

As a result of the researches conducted by Frontier Strategy Group, Africa’s population is expected to increase. Because of the capital flow coming from all parts of the world, Africa is priceless for many companies. It is of great importance that foreign companies have to fairly distribute their investments all over the continent. States in Africa, population of which differs between 1 and 5 million, will reach 73 million in 2025. African continent’s future looks bright with the %6,6 growth recorded in 2012.

Africa’s one of the biggest desires is industrialization; thus, they will be able to produce instead of choosing the option of importing required products and at the same time they aim to offer new fields of work. However, it is evident that a substantial amount of qualified personnel is required for this industrialization. If this be so, education system has to be reviewed and necessary regulations have to be performed on the education system in direction with the demands of the country.

On the other hand, the increasing population is still a serious problem when abovementioned regulations are considered.

Economic growth in Africa is 4 times bigger than the whole continent. The Dark Continent’s total magnitude is expected to be 2.6 trillion dollars in ten years. Biggest concern that instills fear is the continuance of the continental economic recession.

Investment Zones

As a result of the researches conducted by the Frontier Strategy Group, five investable zones in Africa are defined. MENA research division president Matthew Spivack specified and declared these zones as; Acra (Ghana), Johannesburg (South Africa), Lagos (Nigeria), Luanda (Angola), Nairobi (Kenya). Johannesburg (South Africa): City’s nominal gross national product (GNP) 51 billion dollars. Lagos (Nigeria): Lagos’s economic magnitude is 40 billion dollars.

Akra (Ghana): Akra, which is Africa’s one of the most important destinations, constitutes approximately ten percent of Ghana’s economy. Production, retail, finance, insurance, travel and tourism are some notable fields of investment.

Nairobi (Kenya): In Nairobi, which is an industrial center, processed food, beer, motor vehicle, soap, construction materials, textile and chemical substances are manufactured. Ibadan (Nigeria): City, which is an important trade center for cacao, cotton, timber, rubber and palm-oil, focuses on commodity process, tobacco, cigarette, flour, leather trade and furniture making in terms of industrial production.

Addis Ababa (Ethiopia): African Union’s headquarter being in this city makes it Africa’s capital city. Especially beverage giants have great investments on this city. And for the upcoming years, it is expected that large companies will focus on the following cities as target zones of investment: Addis Ababa (Ethiopia), Darussalam (Tanzania), Ibadan (Nigeria), Kinshasa (Democratic Republic of Congo), Mombasa (Kenya).

This article was taken from “Africa Time” magazine by demanding all necessary permissions for copyright.



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