Africa is now ranked the world’s second fastest growing economy, after the continent surged five percent with analysts projecting 5.3 percent growth this year.
Analysts observe that apart from a more stable political system, technology, especially mobile phones and the Internet, has greatly contributed towards the fast-paced economy.
Businesses can now conduct their transactions more efficiently, as many citizens now have access to financial services via mobile banking, they said.
Speaking at the 43rd World Economic Forum Annual Meeting in Davos, Switzerland, Graham Mackay, Chairman of UK-based brewer SABMiller, said the growth factor in Africa can easily be doubled if certain bottlenecks are eliminated.
South Africa’s President Jacob Zuma, while speaking on the need for Africa to consolidate its gains, said: “We realize that intra-trade is not enough and are working hard on that. We are also dealing with the economic issues. We’ve just discussed and agreed to integrate three of the five economic regions, creating a free trade area of more than half a billion people.”
According to President Goodluck Jonathan of Nigeria, conflict is no longer one of the threats facing investors in Africa, as most countries now have a stable democracy.
“Presently, about three African states have conducted successful elections two times,” he said.
“From the standpoint of investors and people coming into Africa, I think what is important to see is commitment from the political leadership to secure investments, ensure there are no major fallouts of any terror activities which have recently developed, and, importantly, manage foreign exchange in a manner which does not deliver shocks,” said Sunil Bharti Mittal, Chairman and Group Chief Executive Officer, Bharti Enterprises, India.