Top 3 Reasons Why Africa’s Economy is Booming
It is no wonder that with time, the developing nations are slowly earning revenues with the money that the investments are bringing them. And it is quite at a high rate. And on top would be Africa. Some of the most developed countries in Africa have observed an intense rise in the economic pulse. The GDP rose by 4.9% from 200 through 2008.
And, not just one sector but growth has been observed in various sectors like banking, telecommunication, retailing, and much more. Here are some reasons which would put forward why the economy in Africa is booming. Not only is it putting Africa in a world recognizing position as a developing power but is also helping them increase their economic diversification.
Growth Prospects are Promising:
This may confuse many economists thinking that whether the rise in the economy is a one-time thing as was seen with the oil boom in 1970 or is an economic take-off. Though the individual economic growth could be a disappointing one, with short-term risks.
But the future growth prospects are really amazing and quite promising. The factors that would help it would be the external trends and also the changes internally in the society and the economy of the continent. Also, Africa is a source for resources like minerals and oil which has helped in increasing its value among the world powers. And, therefore, Africa would continue to profit.
The Rise In African Urban Consumer:
The long-term economic growth reflects the social and the demographical changes which are interlinked. This helps in creating new domestic engines of growth. And, as the rise in the middle-class African consumer would increase so would the urbanization. And, this would fundamentally affect the labor force. Though urbanization could boost slums creating trouble, many countries are becoming more productive. And, therefore, companies can expand as well.
Boosting Of Finance Investment And Economic Diversification:
When the economy shifted from agriculture to urban, a lot of sectors contributed to the growth and transition of it. They help in creating jobs that would boost the income and help in raising the domestic demand. And, to build the modern economy the right infrastructure is a necessity. For this, exports are the most important way to earn currency. African countries do require exports to help them in financing the investments which would help with economic diversification.
These are some of the reasons why the economy of Africa is booming and moving towards a successful goal.