Africa’s overall economy is without a doubt on the right track and may even come up with a quicker financial recovery from the recession when compared to the US. This is based on the World Bank’s Global Economic Prospects report for 2011.
The report, released in mid-January, forecasted that sub-Saharan Africa would most likely improve its gross domestic product (GDP) from 4.7% in 2010 to 5.3% for this year. That number might possibly be bumped upwards to 5.5% in 2012.
The report in particular mentioned that price levels in metals, minerals and oil, along with more significant investment in manufacturing and telecommunications companies, have definitely contributed towards the growth.
As indicated by Phumelele Mbiyo, Standard Bank’s Senior Africa Strategist for Global Market Research, the numbers suggest that economic activity, particularly in relation to mining and construction, is without a doubt growing in the region.
“The reason behind this type of increase is simply because prices for commodities are fairly high and they have enticed investment, in particular from emerging markets such as China,” he said.
Mbiyo is convinced an average person would most likely reap the benefits of these types of optimistic forecasts, as companies have the desire to seek the services of locals.
“There has already been increased employment of locals within the mining and construction industries. There is certainly destined to be a considerable amount of employment in future, primarily by European and American based companies who have invested heavily in mining in Africa.”
High continental growth
Having said that, the report pointed out the fact that the best growth rates were not necessarily to emerge from South Africa, the region’s traditional economic hub. Rather, the greatest figures originated from countries such as Nigeria, Angola, Kenya, the Republic of Congo, Ethiopia, Mozambique, Botswana, Zambia, Malawi, and Tanzania.
South Africa has been projected at 3.5% for 2011 in contrast to other countries from the other countries in the region were believed to grow at an average of 6.4% for the same year.
Mbiyo outlined that this is simply not for the reason that South Africa’s growth is slowing down, but instead for the reason that other countries are beginning completely new industries now not to mention coming from a low base whereas South Africa had already established exactly the same industrial sectors years ago.
“Angola is set to grow by 7% on average whereas Ghana will average 13% over the following two years. Simply because the latter is beginning to supply oil,” said Mbiyo.
He added that Africa should really at this time concentrate on sustaining growth mainly because the continent continue to lags behind other major developing and developed economies.