Africa

Of all our emotions, fear almost always seems to be on top of the list. Human beings have an innate tendency to focus their attention more on gloomy and negative events and threats. It comes as no surprise that all the media are loaded with stuff that feeds exactly this kind of appetite.

The financial press is abuzz with doomsday scenarios. Several developed economies are crumbling under the weight of debt. Emerging economies are engulfed with concerns of slowing growth and high inflation. The recent hammering of Indian stock markets is a clear vote of fear and uncertainty. Is there absolutely nothing in the world economy to cheer about? We don’t think so.

Amidst all the gloom and chaos, a continent by the name of Africa is quietly on the rise. After centuries of stagnation and political turmoil, the last decade has witnessed a remarkable shift on this continent. The Economist has shared some interesting statistics. “Over the past decade six of the world’s ten fastest-growing countries were African. In eight of the past ten years, Africa has grown faster than East Asia, including Japan. Even allowing for the knock-on effect of the northern hemisphere’s slowdown, the IMF (International Monetary Fund) expects Africa to grow by 6% this year and by nearly 6% in 2012, about the same as Asia.” While a significant amount of credit for the growth goes to the commodity boom because of region’s rich natural resources. But Africa is also steadily gearing up on the manufacturing and services front. The continent is also gifted with a favourable demographic profile.

Of course, the positives must be taken with a pinch of salt as a large part of the continent is still embroiled in poverty, corruption and hordes of social and political issues. But problem also means opportunity. While China has scooped up the prospect and made huge investments in Africa, many other countries, including India, are waking up to the continent’s improving prospects.