African leaders discuss the state of the African economy at the 2010 IMF/World Bank Spring Meetings. Photo: International Monetary Fund (flickr)

The Economist

The Economist

Since 2001, the budding economies of the BRICS (Brazil, Russia, India, China and South Africa) have dominated global financial headlines. But looking back, it turns out some of the so-called “African lion” economies (Angola, Nigeria, Ethiopia, Chad, Mozambique and Rwanda) were just as fierce.

Six of the 10 fastest-growing economies in the world hail from the “forgotten continent” of Africa — putting up annual average GDP growth rates of around 8 percent or more from 2001-2010. The monumental rates have even earned these sprinters a spot next to “Asia's tigers” of the 1980 and 1990s — Making Africa one of the fastest growing regions in the world, according to The Economist.

Over the past decade, sub-Saharan Africa’s real GDP growth rate jumped to an annual average of 5.7%, up from only 2.4% over the previous two decades. That beat Latin America’s 3.3%, but not emerging Asia’s 7.9%. Asia’s stunning performance largely reflects the vast weight of China and India; most economies saw much slower growth, such as 4% in South Korea and Taiwan. The simple unweighted average of countries’ growth rates was virtually identical in Africa and Asia.

That said, in the next five years Africa is set to take the top spot from Asia as the fastest-growing region in the world, writes The Economist. "Standard Chartered forecasts that Africa’s economy will grow at an average annual rate of 7 percent over the next 20 years, slightly faster than China’s."

Ironically, much of Africa's growth can be attributed to China's investment and demand for raw materials in the region. And more recently, another of the BRICS, Brazil, has been competing for assets in Africa, writes Fast Company.

The Economist also notes growing success in Africa's manufacturing sector, which Standard Chartered predicts will become "significant."

Even with challenges such as political instability, corruption and weak rule of law, the African lions have been able to compete with the economic prowess of the Asian tigers.

But before Africa's growling economies can dream of surpassing Asia's roaring ones, those structural problems will have to be fixed.

"Without reforms," The Economist says, "Africa will not be able to sustain faster growth."

Students in South Africa learn how to use smartphones. Photo: DI GameWorks (flickr)

The internet revolution in Africa will not be televised, but it will most likely be tweeted from a mobile device.

In fact, more young people in developing countries access the internet via mobile devices than in developed ones, explain Opera Software developers in a World News Heard Now article.

About 5.81 percent of total web browsing in Africa is done on mobile devices, compared to 4.7 percent in North America, according to figures cited by The Independent. And depending on the country, the percentage can be much higher. The Independent cites the example of Chad, where about 29 percent of all web browsing is sourced to mobile devices.

Telcom experts are expecting enormous growth in continent-wide internet access.
CEO Brian Herlihy of the African broadband company SEACOM told the Christian Science Monitor that total internet access in Africa tops out at about 15 percent -- a figure he expects to grow by 50 percent each year. And he expects IT spending to go up -- tripling to $150 billion by some estimates -- as telecoms, phonemakers and service operators wage price wars.

Whether its being texted or tweeted, the revolution has begun.

Cotton farmers in western Africa have been badly affected by a global drop in prices. Photo: 10b travelling (flickr)

Falling cotton prices hurt African farmers far more than their American counterparts. And American subsidies may be to blame for the Africans' pain, according to a documentary on Dev.tv, a nonprofit media outlet.

American farmers profit by growing more cotton since the U.S. government has promised them a fixed price no matter how much they produce. But American subsidies cause the market to be flooded with cotton, according to an industry expert in Benin, Bernard Adikpeto. "Because the U.S. subsidizes its cotton production, its farmers put a surfeit of 1 million tonnes in the market in 2001, leading to a drop in cotton prices."

On the other hand, African farmers don't get any subsidies, so they are hit hard when cotton prices fall in the free market. Consequences are especially bad because this crop is a crucial source of income in countries of Central and West Africa. For example, the cotton industry in Burkina Faso employs more than 2 million people and generates 40 percent of the nation's export revenue. Nearly 40 percent of Chad's population is involved in producing cotton, and two-thirds of its total export comes from this crop. In all, more than 10 million African farmers have lost income since the price of cotton fell worldwide.

What's ironic is that African farmers are losing money while selling a product they produce more competitively than others. Central and West African countries produce cotton at half the cost of the U.S. and Europe. Yet, these African nations bear a loss of $1 billion in the cotton economy every year.

To learn more on this topic, you can watch the documentary below :