News / Africa

Africa's Bright, Dark Economic Spots Get Attention

Economists say more outside investment is needed to boost Africa's recent economic growth
Economists say more outside investment is needed to boost Africa's recent economic growth

Multimedia

Audio
Nico Colombant

As the International Monetary Fund (IMF) and World Bank spring meetings kick off in Washington this week, Africa's economies are the talk of both guarded optimism and cause for concern.

Since the mid-1990s, economic growth in Africa has accelerated. The upward trend is continuing now despite sluggish recoveries elsewhere. World Bank officials expect the region's economy to grow 5 percent this year.

Economists and experts warn however against considering Africa as a homogeneous entity.  Brookings Africa Growth Initiative Director Mwangi Kimenyi is among these.  He spoke at a conference in Washington last month organized by the Carnegie Endowment for International Peace.

"It is very important to disaggregate these countries, remove the oil countries, because the drivers are different," said Kimenyi.  "Coastal [countries] are sometimes different from the landlocked, North Africa, and so on. But if you look at the countries that are doing well and they are not natural resource rich countries, they have tried to diversify their economies and they have become competitive in particular sectors."

Bright spots in African economies include Ghana's agricultural sector, Kenya's mobile banking, Lesotho's light manufacturing, Cape Verde's tourism and Botswana's mining.

Major obstacles in most African countries include insufficient schooling beyond primary levels, huge gaps between a small rich elite and the majority of poor, a lack of outside investment and limited regional integration.

Harry Broadman, the chief economist of U.S.-based Albright Capital Management, says the main impediment to better growth is poor governance.

"We can have all the other reforms that we want in the world, whether it is trade reform, whether it is education or the like, but unless we have a confluence between civil society and the political and economic leadership, we are not going to get very far in a sustainable way on the continent moving forward," said Broadman.

Shanta Devarajan, the chief economist of the World Bank's Africa region, also points to low labor productivity, which measures the ratio of output per hour's work.

"You see 70 to 80 percent of the labor force in the informal sector, mostly in single family household enterprises working on very low productivity activities and also unable to take advantage of any economies of scale, even of the type where you have a firm of 50 people you might be able to buy a machine that can increase your productivity," said Devarajan.

Devarajan says Africa's labor force is getting bigger and bigger, which is both a source of potential but also problems.

"We have seven to 10 million young Africans entering the labor force every year adding to a total stock of about 200 million," added Devarajan.

Beyond the overall numbers which point to strong growth, economists say there are more than a dozen African countries which are extremely fragile economically.

They also say most Africans continue to be extremely vulnerable to external shocks which can severely affect their livelihood, from soaring food and fuel prices, to climate change induced natural disasters, and the outbreak of health epidemics and recurring political violence.

You May Like

Multimedia US Nurse ‘Cured of Ebola,’ NIH Says

Nina Pham, Texas nurse who treated first Ebola patient in US, received no experimental drugs; WHO expects vaccine surge in 2015 More

Video Islamic State Militants Encroach on Baghdad

Iraqi capital not under ‘imminent threat,’ US military says, amid worries about foothold More

Video Hong Kong Protesters Focus on Holding Volatile Mong Kok

Activists say holding Mong Kok is key to their movement's success, despite confrontations with angry residents and police More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid