The UN has reported that Africa’s economic growth is increasing, slow and steady, but frail. They are predicting that the continent’s economies will grow almost 6% in 2007. However the report states that if African countries are to continue to grow they will need to diversify their economic output and invest more in infrastructure. The top growing econmies include: Mauritania (19.8%), Angola (17.6%), and Mozambique (7.6%). The report points out that the economic growth rests on a very fragile base and there are still conflicts to face. The HIV/AIDS crisis has killed much of Africa’s workforce. Countries need to open their borders to trade, invest in their infrastructure, and insulate themselves against external shocks. If these predicted growth percentage’s come true in 2007 this will be the continent’s fourth year of growth. Zimbabwe was the only economy to contract in the last year by 4.4%.
The Foreign Policy blog notes that the landlocked Rwanda will be the prime spot for multinational corporations to invest. The article states: ‘Kagame, who has been president since 2000, is viewed as an honest, business-savvy man opposed to corruption, unlike many other African leaders. Consequently, American businessman Dan Cooper, who has been pitching Rwanda to U.S. corporations, describes the Maryland-sized country as “the most undervalued ‘stock’ on the continent and maybe in the world’.” However Freedom House listed as not free, the hope is that this economic upswing will benefit the citizens.
Africa is gaining economically even as Zimbabwe’s inflation reaches 1,600% and Angola calls off talks with the IMF. China continues to invest in countries regardless of political or human rights standings. Africa’s countries have a lot to deal with if they are to continue their strong economic upswing. The recent signing of many bilateral trade agreements will hurt these economically developing countries. Many countries still have conflicts to clean up before more growth can happen. Rwanda is recovering from genocide, but seems to be gaining a foorhold in the economic system. Oil, don’t forget about oil. It is my belief that oil will be the greatest hope for African countries to become economically stable and advanced, as long as the resource is used wisely. Africa’s hope is growing, but so is the resource lust of emerging economic giants.