Kamil Idris on the Rise of the African Economy

Africa has around 1.2 billion inhabitants. It also puts out 99% of the world’s supply of chrome, 85% of its supply of platinum, and 54% of its supply of gold. As a result of its tremendously growing natural resource output, Africa as a whole is coming out of mass poverty and having an increasingly stronger part of the global economy. The whole world is watching to see what choices it will make to this end. Africa can currently be split into two economic sectors: Sub-Sahara that that has an average of $3,300 per capita and North Africa that has an average of $11,000 per capita.

 

Although the Sub-Sahara region has a much smaller average income, its economy is growing at a much faster rate. This area of Africa is seeing an increasingly higher employment percentage. The massive growth in multiple sectors of the workforce does not show any signs of slowing down. This does not mean that Africa has not experienced any recent economic setbacks whatsoever. There are those countries throughout Africa that have for whatever reason remained impoverished with a stagnant economy.

 

There are a couple of reasons why this may have been the case. 1) Political instability – harsh governments have made it nearly impossible for some countries to improve themselves. 2) Some of these countries have been hit harder by the dropping oil prices – oil trade between African countries is a trillion dollar business, but this inter-Africa trade has been lessening in value of late. But many of these impoverished countries are at the same time being positively benefitted by the growing economy of neighboring countries.

 

But there is light at the end of the tunnel for these still impoverished nations. It looks like the prices of oil will be picking up in the near future. Africa as a whole has a bright future ahead of it.