adminInnocent Katsande Correspondent
THE recent rise in Asian trade and investment in Africa has become part of a global trend towards accelerating economic growth in developing countries. It is now public knowledge that Africa’s economic progression into the league of developed economies will take a shorter time than it took developed nations. Technology is quickening our economic development pace.
Information that would cost young people hundreds of dollars to acquire or weeks to compile is now available at the click of a button. West and East Africa remain the fastest growing regions.
Given our different currencies, and economic policies, growth varies widely across the continent, reflecting differences in stages of development, availability of natural resources, skilled personnel as well as political and social stability.
According to the African Economic Outlook, as North Africa continues on its fragile growth path, West Africa is expected to continue its rapid growth.
After some moderation in 2013, growth is likely to accelerate to above 7 percent in 2015. Growth in the region is widespread with most countries achieving growth of 6 percent or more. In Nigeria against what most people down south would speculate, growth is mainly driven by non-oil sectors, such as agriculture, trade, information communication technologies (ICT) and other services.
The oil sector, which accounts for 37 percent of GDP and about a fifth of government revenues, is currently a drag on growth and suffers from theft and pipeline vandalism and weak investment.
In Ghana economic growth is expected to remain robust, boosted by oil and gas production and increased private and public investment. Côte d’Ivoire is also expected to remain on a high growth path.
With improved political stability public and private investment have become important drivers of growth across the continent. Sierra Leone is currently the fastest growing country in the region with growth mainly driven by iron and ore exports although other sectors, in particular agriculture and construction, also contribute.
In Mali, the economy rebounded in 2013 after the backlash in 2012 caused by the political and security crisis and growth is expected to improve further in 2014 and 2015.
In Southern Africa, growth performance is uneven. Angola, Mozambique and Zambia recorded the highest growth of between 5 percent and 7 percent in 2013 and are projected further to accelerate to between 7 percent and 9 percent in 2014/15.
Growth in these countries is boosted by investment in infrastructure and investment in extractive industries.
In South Africa, labour unrest and other internal limitations have depressed growth. The exchange rate depreciated during 2013 and again at the beginning of 2014 as the tapering of US monetary policy has depressed currencies in emerging markets. With the recovery of the global economy and exports, further boosted by the weaker exchange rate, growth is expected to accelerate to 2.7 percent in 2014 and 3 percent in 2015.
The relatively modest growth in South Africa is also depressing growth in sub-Saharan Africa. Growth in sub-Saharan Africa excluding South Africa amounted to 5,7 percent in 2013 and is currently accelerating to 6,9 percent.
Given how fellow African countries are performing in light of the currently prevailing global economic dynamics, young Zimbabweans should decide fast on how we can get involved, contribute and take advantage of what the economic growth momentum is offering.
These are the things that ought to keep young people awake every night.
The UN Population Division tells us that the demographic future of the world will be Africa-driven. The division estimates that presently 70 percent of Africans are under the age of 30. By 2040, 50 percent of the world’s youth will be African.
With nearly half of the youth population in Africa currently unemployed or inactive and 72 percent living on less than US$2 per day — certainly there is no better time to start worrying where the next jobs will come from.
Innocent Katsande is the communications officer for Zimbabwe Youth Council.
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