is still perceived far too negatively in Washington and London, and it is not as if issues of hiv/Aids, poverty, corruption and ethnic/political conflicts will disappear any time soon. A massive 66 percent of the continent’s long-suffering 160 million destitute people still live in slums, but on most social development indicators the continent is showing substantial progress in uplifting the poor. In contrast, Beijing, Delhi and Brasilia clearly see the potential and are acting on this with their pocketbooks.
Although there is a long way to go in terms of rolling out democratic accountability, substantial strides have been made in key social indicators. This bodes well for Africa. For business less concerned about governance issues, the continent is wide open for a plethora of commercial opportunities. This trend is clear and barring a ‘black swan’ series of incidents, looks set to spur on the continent.
As unscrupulous African leaders grasp the leverage of the discoveries of new oil fields or value of the agricultural land to foreign investors, however, less-than-savoury leadership can again turn towards new and more sophisticated elite-sponsored deals with foreign entities, preventing real benefits from filtering down to Africa’s people.
Africa therefore stands on the cusp of a critical opportunity. If it can grasp its own global importance in an era of unique opportunity and simultaneously understand the need for a lesser role of its political elites in favour of spending on its people, it can start to really provide rather than squander its resource leverage. The continent is well positioned in a world less dominated by the West and more open to input and influence from the developing world. The quest for scarce commodities has tied the African continent to the needs of major economic players more than ever before. As the economic recession leaves an enduring mark on the spending habits of those in Boston, Bordeaux and Birmingham, so global corporates will increasingly look to add profit from exposure to new markets – thus making Africa so attractive.
The real trend, therefore, is a continent with great potential, operating in a changed era of global conditions when it should have its best shot at success, but still with a leadership corps uncertain whether it can grasp the future or put it in its back pocket.
[1]African Futures 2050, Institute for Strategic Studies Monograph 175, January 2011
[2]African Futures 2050, Institute for Strategic Studies Monograph 175, January 2011
[3]BRIC and Africa, Standard Bank Economics Brief, 23 November 2010
[4]African Futures 2050, Institute for Strategic Studies Monograph 175, January 2011
[5]Lions on the Move: The Progress and Potential of African Economies, McKinsey Global Institute, June 2010
[6]International Monetary Fund 2010
[7]World Factbook, CIA 2010
[8]http://online.wsj.com/article/SB10001424052748704720804576009672053184168.html
[9]BRIC and Africa, Standard Bank Economics Brief, 23 November 2010
[10]BRIC and Africa, Standard Bank Economics Brief, 23 November 2010
[11]Vijay Mahajan, Africa Rising, Wharton School Publishing 2009
[12]World Bank Statistics: http://data.worldbank.org/
[13]http://online.wsj.com/article/SB10001424052748704720804576009672053184168.html
[14]http://money.cnn.com/2010/11/30/news/companies/Walmart-Africa-expansion.fortune/index.htm
[15]Lions on the Move: The Progress and Potential of African Economies, McKinsey Global Institute, June 2010
[16]Cornering Foreign Fields, in The Economist, 21 May 2009
[17]Food, Water Driving 21st Century African Land Grab, in Mail & Guardian, 7 March 2010
[18]Outsourcing’s Third Wave, in The Economist, 21 May 2009
[19]www.tomorrowtoday.co.za
[20]BRIC and Africa, Standard Bank Economics Brief, 23 November 2010
[21]Serge Michel and Michel Beuret, China Safari: On the Trail of Beijing’s Expansion in Africa, Nation Books 2009
[22]http://www.chinatalkingpoints.com/richard-behar-on-chinas-march-into-africa/
[23]Deborah Bräutigam, China in Africa – Think Again, in The European Financial Review, 16 August 2010
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