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Looking Forward: Prosperity in Growing African Economies

Jessamy Nichols, Africa Correspondent
Last Modified: 16:08 p.m. DST, 29 January 2014

China President Xi Jinping Delivers Speech in Dar es Salaam, Tanzania - March 2013

China President Xi Jinping in Dar es Salaam, Tanzania, 2013

AFRICA – There’s no doubt that the continent of Africa is plagued by the common misperception and overarching reputation of being poor, downtrodden, corrupt, unsafe, unstable, and a list of other discouraging adjectives.

However, the world is not far away from having to look at Africa in a totally different light, where African countries are equal business partners overflowing with lucrative business opportunities.

A large portion of the world’s emerging economies hail from Africa, including South Africa, Nigeria, Morocco, Zambia, Namibia, Botswana, Tanzania, Uganda, as well as others. (Source: Center for Global Development)

As economic expansion tends to do, this has also led to internal reforms that are beneficial for the overall population beyond just GDP. For example, earlier this month, Nigeria rolled out their new mortgage refinancing program, similar to the American Fannie Mae reform, to make housing more accessible for citizens. For the first time, Nigerian citizens will be able to utilize mortgages and quality housing through an affordable and reasonable system.  Not only will this greatly improve the standard of living, but it puts more money into the economy and is also estimated to add over 300,00 jobs to the economy.

Coinciding with these economic improvements, the Nigerian power sector reforms have led to indications of incoming and ongoing investments. According to the Oxford Business Group (Daily Trust), the power sector will garner major investment, even compared to Nigeria’s vast oil and gas, banking and manufacturing sectors.

Other examples of expansive and impressive economic accomplishments include Ethiopia’s vast enhancement of its industrial zone, the Eastern Industry Zone, on the outskirts of Addis Ababa. Through these improvements, over 20 foreign companies have already secured factories at the site, including big businesses from China, Taiwan, South Korea, Pakistan and India. To expand the success even further, the World Bank is believed to be working to help Ethiopia gain more funds for the influx of foreign direct investment. (The Reporter)

Moving farther south in Africa, Tanzania is also following the economic growth train. South Africa’s robust business community has shown much interest in expanding into Tanzania, particularly in the infrastructure, mining and agricultural sectors. In order to facilitate these opportunities, the Tanzanian government is encouraging local businesses to create and build relationships with their South African counterparts, while providing an ever more conducive environment for business expansion. (Tanzania Daily News)

Outside of meaningful economic reforms and advancements, there are also other vital changes and partnerships being created to support a continent that is more stable, prosperous and successful than ever before. For example, at last week’s World Economic Forum meetings in Davos, HarvestPlus and World Vision signed a partnership to tackle hunger and help improve nutrition for hundreds of millions of people. (International Food Policy Research Institute ) Partnerships such as these will be key to supplementing economic growth, because without food security, solid education, stable political situations and adequate healthcare, the economies will be stunted.

As the world searches for the next big economic opportunity, there is no doubt that Africa should top their priority list. The continent is no longer stagnant and economically stunted, and increased foreign direct investment and business partnerships will only enhance the improving image as well as drastically boost the quality of life for many African nations.

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Twitter: @nahmias_report
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About Jessamy Nichols

Jessamy Nichols is our Africa Correspondent and a recent graduate of the University of North Carolina at Chapel Hill where she graduated with majors in Global Studies and Political Science, and a minor in African Studies. She has traveled throughout East Africa and is beginning her career in the international affairs realm after recently moving to Washington, DC. Her interests include global human rights issues, international conflict resolution, African politics, regional instability, and multilateral institution behavior.

View all posts by Jessamy Nichols

One Comment on “Looking Forward: Prosperity in Growing African Economies”

  1. Yatin Says:

    Africa has always attracted businesses from around the world, only in 21st century countries have started to take real interest in the development of Africa, of course there’s a vested interest in doing but none the less it is helping people there.

    Reply

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