Africans are celebrating levels of economic growth and political stability that were unthinkable just 10 years ago, but without the appropriate economic and political reforms, the continent could quickly relapse. Beyond its usual calls for political reform, a recent Economist article urges Africans to work faster to diversify their economy and promote trade:
About a third of Africa’s GDP growth comes from commodities. This will not last. Today’s prices are near record highs and commodity markets have a habit of collapsing. Furthermore, recent gains in agricultural commodities may be undermined by climate change.
The continent is experiencing unprecedented urban migration and a baby boom, meaning a robust workforce is ideally positioned for expansion into new sectors, such as business and manufacturing. Increased international trade could also make entrepreneurship look more promising:
If aspiring Africa wants a new dream, it should be creating a common market from the Med to the Cape. That would be a boon to trade, enterprise and manufacturing: it would also get rid of much of the petty corruption and save lives.
Start-up accelerators, green investors, banks and multinational corporations are already taking an interest in Africa. Expansion of these programs across the continent would only mean good things for Africa’s future.
Read the full article here.