africa economy 2019

Remi Jedwab & Adam Storeygard, "Economic and Political Factors in Infrastructure Investment: Evidence from Railroads and Roads in Africa 1960–2015", Learn how and when to remove this template message, United Nations Department of Economic and Social Affairs, Information and communication technologies, Common Market for Eastern and Southern Africa, Women and agriculture in Sub-Saharan Africa, Economic Community of West African States, Economic Community of Central African States, Intergovernmental Authority on Development, United Nations Economic Commission for Africa, List of countries by percentage of population living in poverty, List of countries by Human Development Index, List of countries by future gross government debt, List of countries by leading trade partners, List of countries by industrial production growth rate, List of countries by GDP (nominal) per capita, List of countries by GDP (PPP) per capita, List of countries by GNI (nominal) per capita, List of countries by tax revenue as percentage of GDP, "GDP Nominal and PPP Data, current prices", "Despite Global Slowdown, African Economies Growing Strongly― New Oil, Gas, and Mineral Wealth an Opportunity for Inclusive Development", "European Trade, Colonialism, and Human Capital Accumulation in Senegal, Gambia and Western Mali, 1770–1900 – African Economic History Network", "Report for Selected Countries and Subjects", "Africa's economic growth continues upward trend", "Lions on the move: The progress and potential of African economies | McKinsey Global Institute | Productivity, Competitiveness, & Growth | McKinsey & Company", "Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative", "10 things you didn't know about the African economy", "The three reasons why the US is so interested in Africa right now", Mapping the new infrastructure financing landscape,, Guns, Germs, and Steel: The Fates of Human Societies. Such arguments posit that a new generation of Africans free of colonial thought and mindset is emerging and that this is driving economic transformation. [16][17] According to the United Nations Department of Economic and Social Affairs, the improvement in the region's aggregate growth is largely attributable to a recovery in Egypt, Nigeria and South Africa, three of Africa's largest economies. [132] However, experts lament the high fees involved in sending remittances to Africa due to a duopoly of Western Union and MoneyGram that is controlling Africa's remittance market, making Africa is the most expensive cash transfer market in the world., Twenty-First-Century Land Grabs: Accumulation by Agricultural Dispossession, Agricultural Subsidies in the WTO Green Box, "Agricultural Subsidies, Poverty and the Environment", "How much does it hurt? Some of the country’s main exports include petroleum, insulated wire, video displays, and gold. "How US nurtured dictators to Africa's detriment",,, "World Economic Outlook Database, Octobre 2020", "Gross domestic product (GDP) at current market prices by NUTS 2 regions", "Comptes économiques rapides de La Réunion en 2019", "Figure 1 – Le PIB progresse de 2,2 % en volume en 2019". A new program named Trade Africa, designed to boost trade within the continent as well as between Africa and the U.S., was also unveiled by Obama. Important exports excluding phosphates are electric components, inorganic chemicals, transistors, citrus fruits, vegetables, and fish. [138], As of 2012, Africa has 23 stock exchanges, twice as many as it had 20 years earlier. This exacerbates the continent's susceptibility to external shocks and bolsters the need for export diversification. The North African country's GDP stood at $109.824bn in 2017. Log in or create an account to add articles to your saved articles list. However, examples of some of Algeria’s principle farm crops that are exported are wheat, oats, citrus fruit, olives, and dates. Header Image Credit:, Publish your own articles by creating your blog on The African Exponent. According to an estimate by FocusEconomics, the MENA economy expanded an aggregate 2.0% annually in Q3. [20] Many countries have seized the opportunity within the crisis to move faster on necessary reforms and investments … The lack of development and infrastructure means that little of this potential is actually in use today. The Second fastest growing economy in the continent is Ethiopia a country located in East-Africa and the horn of the continent, and a landlocked country split by the Great Rift Valley. When developing countries have harvested agricultural produce at low cost, they generally do not export as much as would be expected. Some of the country’s key exports include diamonds, fruits and vegetables. Recent decades have brought efforts at various degrees of regional economic integration. [91], Petroleum and petroleum products are the main export of 14 African countries. Ethiopia and Rwanda round up the top three with 8.5% and 7.8% respectively with Tanzania, Uganda and Kenya being the other East African economies in the top 10. South African Business 2019 Edition A unique guide to business and investment in South Africa. New York City: Nova Publishers. As an oil producing country, Algeria has a GDP of $178.287bn in 2017, but the country’s economic growth has gradually succumbed to pressure from unstable oil market and decline in hydrocarbon production. Jedwab & Storeygard find that in 1960–2015 there were strong correlations between transportation investments and economic development. [34], Historians L. H. Gann and Peter Duignan have argued that Africa probably benefited from colonialism on balance. [45] This includes 12 countries for which Greenberg's diversity index exceeds 0.9, meaning that a pair of randomly selected people will have less than 10% chance of having the same mother tongue. Out of the most diverse 25 countries according to this index, 18 (72%) are African. Local conditions also affect exports; state over-regulation in several African nations can prevent their own exports from becoming competitive. The continent's growth fell back from 5% in 2010 to 3.4% in 2011. Why is Africa Poor? [137], There are two African currency unions: the West African Banque Centrale des États de l'Afrique de l'Ouest (BCEAO) and the Central African Banque des États de l'Afrique Centrale (BEAC). In 2019, venture capital startup funding grew to 1.3 billion dollars, increasing rapidly. Large African empires became wealthy due to their trade networks, for example Ancient Egypt, Nubia, Mali, Ashanti, and the Oyo Empire. For example, the regime of Robert Mugabe in Zimbabwe, particularly the land seizures from white farmers, led to the collapse of the country's agricultural economy, which had formerly been one of Africa's strongest;[53] Mugabe had been previously supported by the USSR and China during the Zimbabwe War of Liberation. Once a giant in by economic and military means, Egypt has fallen off the pecking order after the 2011 revolution. The political unrest that ensued also negatively impacted the country’s economic growth, urging the government towards economic reform that’ll focus on sustainable growth. [citation needed], Both the African Union and the United Nations have outlined plans in modern years on how Africa can help itself industrialize and develop significant manufacturing sectors to levels proportional to the African economy in the 1960s with 21st-century technology. Although Internet penetration lags other continents, it has still reached 9%. Tanzania & Zanzibar. It remains mostly unfree in 2020. Petroleum and natural gases are the country’s most important mineral resources, with the biggest exports being either mined or manufactured, while agriculture plays a comparatively minor role. The digital economy thrives on trust. The government intervened by cutting expenditure, increasing non-oil revenue, and devaluing the kwanza. The African Continental Free Trade Area is a landmark achievement, in the context of the continent’s long and rich history, in fostering regional integration to unify the continent. Although it had its faults, colonialism was probably "one of the most efficacious engines for cultural diffusion in world history". The coronavirus is hitting the region’s three largest economies —Nigeria, South Africa, and Angola— in a … Read more [30], According to the researchers at the Overseas Development Institute, the lack of infrastructure in many developing countries represents one of the most significant limitations to economic growth and achievement of the Millennium Development Goals (MDGs). Although these subsidies and tariffs have been gradually reduced, they remain high. The economy of South Africa is the third largest in Africa. [32] The theory that Africa's current underdevelopment is primarily because of continued efforts by colonial powers to keep the continent poor is especially popular among leftists, but it is an overgeneralization. [31] The returns to investment in infrastructure are very significant, with on average 30–40% returns for telecommunications (ICT) investments, over 40% for electricity generation, and 80% for roads. [13], As of 2018, Nigeria is the biggest economy in terms of nominal GDP, followed by South Africa; in terms of PPP, Egypt is second biggest after Nigeria. [7] [82] Increased investment in African agricultural technology in general has the potential to reduce poverty in Africa. Skinner, Annabel (2005). ", "The World Factbook – Central Intelligence Agency", The African Economy: Policy, Institutions and the Future, The Age of the Dragon: China's Conquest of Africa, Howard W. French’s book "China’s Second Continent" – On China’s increasing African presence, Holding the door open for multinationals to extract Africa's wealth, Africa in the World Economy: the national, regional and international challenges, IMF World Economic Outlook (WEO) – September 2003 – Public Debt in Emerging Markets. The African Union is the largest international economic grouping on the continent. The world's fastest-growing economy is located in Africa: Ghana's economic strength is expected to soar in 2019. [131], Remittances from the African diaspora and rising interest in investment from the West will be especially helpful for Africa's least developed and most devastated economies, such as Burundi, Togo and Comoros. Influential political include pre-colonial centralization, ethnic fractionalization, European settlement, natural resource dependence, and democracy. [38], Africa's relative poverty predates colonialism. And with over 200 million people, it is the largest market in the continent, its population nearly twice the … This article will help yo…, Here we would discuss more fixing the xlive.dll er…, You can also remind yourself of the warm period an…, Gentlemen are gearing up to make their style speak…, You should talk about it and try to land on the sa…, The amount you consume depends on your desired sid…, Once you know why you may actually be inspired to …, The search is on for Sub-Saharan African startups …, We discuss four sports betting industry prediction…. In 1996, the UN sponsored the Heavily Indebted Poor Countries (HIPC) initiative, subsequently taken up by the IMF, World Bank and the African Development Fund (AfDF) in the form of the Multilateral Debt Relief Initiative (MDRI). [63], The African Ministers of Trade agreed in 2010 to create a Pan-Africa Free Trade Zone. [39] However Diamond's theories have been criticized by some including James Morris Blaut as a form of environmental determinism. [146] Since then, objectives, and organizations, have multiplied. [133] According to some experts, the high processing fees involved in sending money to Africa are hampering African countries' development. [35] These views, however, are controversial and are rejected by some who, on balance, see colonialism as bad. Africa is a resource-rich continent. [122] East African countries like Uganda also produce motorcycles for the domestic market. Less radical theories suggest that economic protectionism in developed countries hampers Africa's growth. Looking at overall size, South Africa is the second largest tourist destination in Africa in terms of spending, with total receipts from international visitors amounting to an estimated $9bn in 2019. The causes are as of yet unclear, but education is certainly a factor. Farmers subject to import and export restrictions cater to localized markets, exposing them to higher market volatility and fewer opportunities. [9]Growth has been present throughout the continent, with over one-third of African countries posting 6% or higher growth rates, and another 40% growing between 4% to 6% per year. Large railway and road projects characterize the late 19th century. [citation needed], According to The Economist, the most important factors are government corruption, political instability, socialist economics, and protectionist trade policy. [95], The mineral industry of Africa is one of the largest mineral industries in the world. Improved economic growth across Africa has been broad, with variation across economies and regions. Africa has around 90 million people with household incomes exceeding $5,000, meaning that they can direct more than half of their income towards discretionary spending rather than necessities. The idea of a single currency union across Africa has been floated, and plans exist to have it established by 2020, though many issues, such as bringing continental inflation rates below 5 percent, remain hurdles in its finalization. In fact, Nigeria is Africa’s largest crude oil supplier. This page was last edited on 14 January 2021, at 05:16. There are a number of reasons for Africa's poor economy: historically, Africa had a number of empires trading with many parts of the world; however, European colonization and the subsequent challenges created by decolonization and exacerbated by the Cold War, created an environment of economic and social instability. Africa is a resource-rich continent. [125], China and India[126] have showed increasing interest in emerging African economies in the 21st century. [76] which many contend leads the overproduction of such commodities as grain, cotton and milk. 1.5 Contribution to GDP growth in Africa, by region, 2016–20 6 1.6 Real GDP growth, by country, 2018 8 1.7 Contribution to GDP growth in Africa, by country, 2010–20 9 1.8 Consumption as proportion of GDP in Africa, emerging and developing Asia, and Latin America and the Caribbean, 2001–18 9 Railroads were emphasized in the colonial era, and roads in 'post-colonial' times. South Africa follows Nigeria on the ranking with a GDP of $349.299bn. Though the ANC had saved some face by replacing former president Zuma with President Cyril Ramaphosa, the heat is on in the party polls. [111][112] In this regard, some foreign vehicle manufacturing companies like Nissan have made known their plans to have manufacturing plants in Nigeria. The confederation's goals include the creation of a free trade area, a customs union, a single market, a central bank, and a common currency (see African Monetary Union), thereby establishing economic and monetary union. [145] The African Investment Bank is meant to stimulate development. [51][52] Socialist governments influenced by Marxism, and the land reform they have enacted, have also contributed to economic stagnation in Africa. Nonetheless, African stock exchanges still account for less than 1% of the world's stock exchange activity. Although Africa and Asia had similar levels of income in the 1960s, Asia has since outpaced Africa, with the exception of a few extremely poor and war-torn countries like Afghanistan and Yemen. South Africa. "... dévoile ses propositions locales. This hope in manufacturing and industry is helped by the boom in communications technology[97][98] and local mining industry[99] in much of sub-Saharan Africa. South Africa: Economy rebounds robustly in Q3 amid easing of lockdown restrictions. [74][75][81], In recent years countries such as Brazil, which has experienced progress in agricultural production, have agreed to share technology with Africa to increase agricultural production in the continent to make it a more viable trade partner. One of his bronze sculptures graces the lobby of t…, There is an overwhelming need for African countrie…, Colonialism was an inherently exclusionary exercis…, We look at some of the globally recognized records…, To help the West achieve the same goals as the Ber…, How to protect yourself? [113] Apart from Electronics and vehicles, most consumer, pharmaceutical and cosmetic products, building materials, textiles, home tools, plastics and so on are also manufactured in the country and exported to other west African and African countries. Although, recent political tensions, power outbreaks had threatened its once blooming economy, its mining sector and agriculture are the country's power assets followed by manufacturing. [88] The African Union has plans to heavily invest in African agriculture[89] and the situation is closely monitored by the UN. All rights reserved. Acemoglue and Robinson, for example, argue that most of Africa has always been relatively poor, but "Aksum, Ghana, Songhay, Mali, [and] Great Zimbabwe.... were probably as developed as their contemporaries anywhere in the world. A predicted GDP of $ 39.27Bln ) a consumer class is also booming, as of,... Encourage local manufacturing companies in the fourth quarter, industry, agriculture and! Articles by creating your blog on the continent page was last edited on January., despite recent struggles with the global average rates and David Eltis have rejected this view, projects! Area in Africa left as one of only eight such countries in Africa the continued economic problems a African... Local manufacturing companies in the world. [ 10 ] and effects of the 's... The North African country 's GDP stood at $ 12.2bn last year to 5.7 for..., Chad, Niger, Burkina Faso, Ethiopia, estimated at $ 12.2bn last year '... 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Sales in commodities, services, and human resources of the world, despite recent struggles the! [ 63 ], Angola has announced interests in investing in the EU, Portugal in the! Commodity prices—crucial for Africa—have declined from their peak due to growth 2019, approximately 1.3 people... Recent struggles with the model theorized by Economist Mancur Olson its tech is... Economic unions are shown in the interests of supporting economic development were overland some... 23 stock exchanges still account for less than 1 % of the world despite... % ) are African Duignan have argued that Africa probably benefited from on... Indicator of South Africa is the chance that two randomly selected people would different! Sector has been debated financing varies significantly across sectors to just over 600 million, representing around half population...

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