Africa has an estimated population of 1.2 billion. As the second most populous continent in the world, it is quickly becoming an economic force. Some of the factors that makes the continent an economic force is the abundance of natural resources. Currently, Africa is the source of 54% of the world’s gold supply, 85% of international platinum supply and source of 99% of the world’s chrome needs.
The African economy is developing in ways that will create a potential ripple effect across the globe. Emerging economies are gaining traction. As this happens, millions of Africans get the opportunity to overcome poverty and exert some influence in the global economy. Africa has started positioning itself as a force to be recognized when it comes to the global economy. It has become more technologically advanced, as well as becoming more inter-connected with other countries. With the current pace, it is evident that the continent may soon be in the leagues of other continents such as Europe and Australia.
Current state of Africa’s economy
Generally speaking, Africa can be divided into two main regions. Sub-Saharan Africa is one region with a GDP capita of approximately $3,300 in 2014. The second region is North Africa with $11,000 GDP per capita in the same year. Additionally, Sub-Saharan Africa has a lesser large middle class with a lower poverty rate compared to that of North Africa.
Sub-Saharan Africa has been enjoying a greater average GDP rate, despite having a lower GDP per capita, over the decade after 2014. It is at 5.8%, which is more than its northern counterpart at 4%. With this in mind, the fact that the southern region of the continent records the highest percentage of informal employment should not be a surprise. Informal employment in this case is determined by the measure of the number of individuals, such as freelance workers and entrepreneurs, who are working outside the prerogative of the government.
According to Professor Kamil Idris, this growth is seen to be increasing rather than decreasing in the near future. Foreign investment has quadrupled between 2004 and 2014. Investors interested in Africa have been motivated by the fact that healthcare and transportation companies have realized growth in double digits.
Kamil Idris Biography
Professor Kamil Eltayeb Idris is an international civil servant and Sudanese statesman. He was born on 26th August, 1954. One of his main achievements was being the WIPO (World Intellectual Property Organization) Director General from 1997 to 2008.