What Forces Are Driving African Economic Growth?

Africa on the Blog: What Forces Are Driving African Economic Growth?

... Much of the promising economic news coming out of Africa reflects the benefit of rising commodity prices. The continent can also expect to capitalize on having a comparatively young demographic structure, as the growth 16 to 30 age bracket provides the potential for an expanded workforce. This is also the demographic that will rapidly adopt mobile technology, which is likely to increase both markets and productivity on the continent.

With sharp and rapid growth, however, there is greater economic disparity. While global demand for Africa’s natural resources will continue to attract investors, the growing gap between the rich and the poor could trigger social and political instability in the future if countries do not take measures to reduce economic disparity so that more people will benefit from the growth of national and regional economies.

African nations should also be careful to direct a sizable portion of the surplus from this growth into infrastructure and economic diversity, so that nations will not be dependent on high commodity prices to sustain a higher standard of living over the long-term.