Emerging middle class to sustain Africa's growth

Despite tough economic hurdles across the world, Africa’s economy is expected to sustain a growth trajectory, this and next year, report says.

This is thanks to a growing appetite for African commodities driven by the continent’s growing middle class, rapid urbanisation, lower public debts and a dynamic private sector.
These projections are contained in a fresh report released at the ongoing World Economic Forum on Africa in Cape Town, South Africa.
The continent’s GDP, says the report, will grow at 5.5 per cent in 2011 and 5.8 per cent in 2012 (in real terms) respectively.

This is one of the highest growth rates in the world.
Countries expected to contribute greatly to this growth include Republic of Congo, Ethiopia, Ghana, Mozambique, Nigeria, Tanzania and Zambia.

Diverse backgrounds

The report, prepared by Africa Progress Panel under the leadership of former UN Secretary-General Kofi Annan, also indicates a bright future for African markets.

By 2015, 221 million additional Africans will enter the market for consumer goods; Africa’s GDP is expected to reach an estimated $2.6 trillion in 2020 and a consumer spending of $1.4 trillion.
“What was termed 'the hopeless continent' 10 years ago, has now unquestionably become the continent of hope,” says Mr Annan who chairs the panel that brings together eminent African leaders from diverse backgrounds.
Based on the positive economic outlook, African countries are expected to attract more investment.

Already, countries like Botswana, Cape Verde, Ghana, Kenya, Mauritius, Mozambique, Namibia, Nigeria, Seychelles, South Africa, Tanzania, Uganda and Zambia have proved attractive investment destinations.