Can We Rely on Africa to Grow?

Can We Rely on Africa to Grow?

Africa's growth has averaged just below 6% over the last decade. And with the world economy slowing including China's, one is tempted to ask if this growth is sustainable. One suspects it is. But it is going to be tough.

But first, Africa needs its own growth leaders - the SANK countries. That is South Africa, Nigeria and Kenya. Spread out across the different regions in Africa, these three are (or at the very least should be) the engines of growth of sub-Saharan Africa.

South-Africa, Africa's largest economy is in a bit of a mess. The once darling of the West has hit a bad political patch. The transition from the last government was not ideal with former President Mbeki leaving office before the completion of his term. The new president, Jacob Zuma seems to be taking the country back another five years. His leftist political dispensation is of major concern to businesses. Moreover it has an almost one-way-street trade relationship with its southern Africa neighbours. This has got to change. The first change, however, has to be political.

Then we turn to Nigeria, the self-styled Giant of Africa. There is no doubt that Nigeria's problem is political. Since the return to democracy over a decade ago, it's been a case of two steps forward, one backward. The fight against corruption was a major boost but the security situation that culminated in the Christmas Day bombings is a major source of worry. At least there is forward movement.

All it takes now is for the leadership of the country to remove the shackles off the levers of growth most especially the power sector. Reforms in the financial services sector should begin to beat fruit on the next few years. It's just a pity that with Nigeria, you are not just sure of what you'll get.

This brings me Kenya which, if I dare say, is the most promising of these troika. With a predominantly agrarian economy, Kenya has made strides in the area of technology. With the country just coming out of shadows of the past election troubles, it has made great strides to diversify the economy. Tourism is still a very big fish in this economy's waters. For this to continue the security situation around the coastal areas needs to be addressed urgently. The innovative aspect of the economy is exciting to behold as shown in the mobile banking technology that has taken over the country. Great things await.

These countries, collectively, have to understand their responsibility in the growth of Africa. Time will not stand still. And if they fail, there are the likes of Ghana and Angola, just to mention two, that are ready to take over the mantle.

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