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Africa shows remarkable resilience and holds potential for accelerated economic growth.
Despite being confronted with the effects of COVID-19, regional conflicts and the impact of climate change, Africa still shows remarkable resilience. Projections by economist Jeffrey Sachs indicate a potential 7% growth rate in the coming years, underscoring a positive outlook for the continent.
RMB Africa Focus S2: E3 | Growth in Africa
Regional growth dynamics:
Distinct regions in Africa exhibit varying growth projections: West and Central Africa anticipate a growth rate of approximately 3.4%, while East and Southern Africa expect growth around 3.0% in 2023. East Africa is an area of immense interest as it has emerged as the frontrunner, poised for a projected growth rate of 4.7%.
“The African Development Bank says the continuing reopening of these economies are repositioning East Africa as a top performer in the region with a projected growth of about 4.7% a year in that region." - Crystal Orderson
East Africa's strategic proximity to Asia and the Middle East presents abundant trade prospects. Key sectors driving growth in the region encompass agriculture, mining, technology and the rapidly expanding ICT sector. Kenya has established itself as a standout performer with its thriving corporate sector, progressive infrastructure development and emphasis on technology.
Furthermore, Kenya's noteworthy infrastructure initiatives, such as road networks, ports and special economic zones, drive economic progress. Kenya capitalises on its human capital with a well-defined vision for the country's future, channelling efforts towards the agriculture, technology and infrastructure sectors.
“What I find fascinating is that they invested a lot of money on infrastructure, getting the roads moving, sorting the port, getting trains and establishing new cities.” - Crystal Orderson
Within East Africa, Kenya stands out as a star performer, capturing the world's attention. The International Monetary Fund (IMF) predicts that Kenya's GDP will surpass Angola – a resource-rich country. This shift reflects Kenya's strategic focus on investment and growth.
Lessons for resource-rich countries:
Countries blessed with abundant natural resources should prioritise economic diversification and move beyond reliance on resources. Kenya's exemplary approach highlights the significance of investing in human capital and formulating long-term development strategies.