Tuesday, December 24, 2013

5 Best Performing Economy In Africa

It is said that Africa is going to become the world’s economic engine in the next 10 years or during the 21st century. Some report have identified some fast growing and promising economies amongst the 54 African countries.

According to Ventures Africa

That Africa is set to become the world’s economic engine in the next 10 years or during the 21st century is no doubt a well-known fact. But that almost all the 54 countries on the continent compete fiercely to be in the top position of the 5 fastest-growing economies in Africa is little known. However, it becomes evident when the names of the top performing economies on the continent changes each year.

According to auditing firm Ernst & Young’s 2013 Competitive Survey, the projected GDP growth from 2012-2017 identify Malawi, Mozambique, Angola, Ethiopia and Zambia as economies that will outperform others.

Malawi tops the list with an expected GDP growth during this period of 7 percent and followed closely by Mozambique at 6.8 percent economic growth.


In the third place is Angola with the projected GDP growth of 6.5 percent in the next six years. Ethiopia’s GDP growth is expected to be 6.3 percent while Zambia is expected to grow its GDP by 6.2 percent.

Despite the negative impact of global economic crises, the size of the African economy has more than tripled since 2000, according to Ernst & Young. The continent also hold bright prospects, with many countries in Africa set to continue recording high economic growth levels in the future.

The cynics will more often than not opine that most of this economic growth is being driven by natural resources. But that is certainly not the case.

According to the International Business Times website, the number of Africans living in the cities has surged dramatically and it could soon surpass that of India, which is considered to be the leader at this stage. It is believed that in the next 16 years, half of all Africans will be living in the cities. It is also understood that Africa’s middle class is set to be bigger than that of India.

The market influences of the west, which Africa is increasingly approving, are pushing down inflation and reducing sovereign debt.

Intra-African trade is changing on the continent with Africa boasting five growing trade blocs. In total, Africa has a $2 trillion economy, according to the International Business Times.
Underlisted are the top performing economies in Africa.

Malawi
According to the African Economic Outlook, Malawi’s economic growth in 2013 and next year is forecast to bounce back to 5.5 percent and 6.1 percent respectively. The state has renewed its commitment to credible macroeconomic policies. Good governance has prompted the International Monetary Fund (IMF) to approve a new Enhanced Credit Facility (ECF) programme for the country. This has led to the reopening of donor financial back-up to Malawi.

Mozambique
Mozambique’s steady ramping up of coal production, the implementation of large infrastructure projects and credit expansion are expected to continue to drive growth to 8.5 percent in 2013 and 8 percent in 2014, according to the African Economic Outlook. The World Bank says the country’s emerging extractive industry could also provide the means for Mozambique to reach the status of a middle-income country by 2025.

Angola
Angola’s economy bounced back robustly after recording sluggish growth due to oil and financial crises. The Report forecast growth in Angola to rise to 8.2 percent in 2013 and 7.8 percent in 2014 on the back of oil and gas sector expansion. There is also a public expenditure programme made to inspire economic diversification.

Ethiopia
Ethiopia’s economy saw a ninth successive year of vigorous growth last year estimated at 6.9 percent, the African Economic Outlook states. The growth was driven by a surging role for services and industry. This motion is set to stay until next year.

Zambia
Growth in real GDP moved faster to 7.3 percent last year from 6.8 percent posted in 2011. In the next 24 months, economic growth in Zambia is forecast to stay strong. In 2012, the economy continued to be strong driven by expansion in agriculture, construction, manufacturing, transport and finance. According to the African Economic Outlook, prospects for the future of the country remain bright.

I don't see Nigeria here. Do you agree?

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