Africa Rising narrative hit 2016 bump but is ready for New Year.

Feb 1, 2017

The African continent is still on firm economic development footing dispite all the ‘Africa rising’ narrative disruption caused by a combination of factors in 2016.

After saying goodbye to 2016, the New Year provides us an opportunity to take stock of Africa’s recent economic performance and future prospects and the fierce year that some of the African countries have had due to a commodities crisis and a global economic slowdown.

The African continent displays deep pockets of good growth and great potential. However 2017 looks to be the year the countries takes it hardest hit as the crisis seek to recover from the economic reveals of the past few years.
Urbanisation and burgeoning middle class expanded consumerism while growing mobile phone and internet penetration spurred the services sector. The increased innovation influenced investment and private consumption.
But with the economic optimism of the past two decades has however been tempered by a combination of factors. From the worldwide decline in commodity price, slowdown of China’s economy, and widespread drought, especially in the east and the south; and rising insecurity and instability in the Horn of Africa.
• The first is that African economies must increase productivity while creating and driving employment.
• The second is that they must ensure they are both producers and consumers.
• The third is to reduce extraction while simultaneously growing local industrialisation.
• Fourth, African governments must build infrastructure for intra-Africa integration while controlling state-budget spending. And finally, countries must grow African consumer spending while encouraging household savings.

The African continent faces numerous challenges, but it has a lot of opportunities to sustain growth and development. Its advantages include a growing labour force, urbanisation and technological advances.

Africa’s progress has been uneven and has been marked by achievements, regressions and setbacks. It is clear, nonetheless, that a firm foundation for sustained growth and development exists.

Building on this foundation is vital to ensuring that the continent fulfills its vast untapped potential.

Apply For A Loan Today

  • This field is for validation purposes and should be left unchanged.