The global community is slowly recovering from economic difficulties across the board. However, countries in Africa continue to grow at rates which surpass all but their Asian counterparts.
According to the International Monetary Fund, African economies will remain strong throughout this year and next. GDP for the region is expected to increase 5.3 percent while certain countries will experience even larger growth rates. Mozambique’s economy is projected to increase by 8.4 percent while Nigeria will increase by 7.2 percent. Despite the drop in the value of gold, South Africa is expected to grow by 3.3 percent this year and 6.1 percent next year. In its entirety, the global recovery is occurring at a much slower pace.
These numbers do not seem that extreme unless they’re compared to the United States’ growth rate which is predicted to increase this year to three percent. This is up from last year’s increase of roughly 2.2 percent.
In tough economic conditions such as these, the United States is being left behind in the cultivation of African businesses and economy. China has been extremely aggressive in creating these relationships and has been reaping the benefits of it. China’s total economic growth is set for 7.7 percent growth this year.
By having a lax or overcautious attitude regarding African investment (both philanthropic and purely business), it is very possible that the United States is missing out on being a part of future success.
– Pete Grapentien
Photo: A Never Ending Dream