Africa's Economy: High Prospects of Boom with Caused Failures

Africa today:

$1.6 trillion – Africa’s collective GDP in 2008, roughly that of Brazil or Russia
$860 billion – Africa’s combined consumer spending in 2008
$316 million – the amount of new mobile subscribers signed up in Africa since the year 2000
60 percent –  Africa’s share of the world’s total amount of uncultivated land
52 the number of African cities with more than 1 million people living urbanized
20 the number of African companies with revenues in excess of $3 billion

Africa tomorrow:

$2.6 trillion – Africa’s collective GDP in 2020
$1.4 trillion – Africa’s consumer spending in 2020
1.1 billion the number of Africans of working age in 2040
128 million the number of African households with discretionary income in 2020
50 percent –  the portion of Africans living in cities by 2030

Africa is a destination for cheap and less costly labour which makes the prospects of booming economic activities high. The coming of more Foreign Direct Investments will be gingered by this. It remains a hot spot for investors.

It is worthy of note that Africa’s acceleration resulted from more than just a resource boom. Their have been various attempts by governments to terminate political unrest, implement enhanced macroeconomic policies creating better business climates but all these are again truncated with leadership greed.

Africa is a continent of commodities. Natural resources accounted for 24 percent of GDP from 2000 to 2008. The rest came stemmed from other sectors i.e. retail, wholesale, transportation, telecommunications and manufacturing. This is also a positive sign of economic growth since the 80’s.

Additional efforts to privatise state-owned enterprises, reducing trade barriers, cutting corporate taxes where applicable and improved regulatory systems, have stimulated economic blood flow. The headache is this angle is the lack of adequate regulations to properly guide the workings of the private sectors, hence, abuse and 'slavery' exist in most industries especially that of the Chinese, Indians and other Asian countries.

In the year 2000 foreign direct investment in Africa stood at $9 billion. Today FDI stands at in excess of $100 billion just from China alone.

Although Africa has all these resources its future is critically dependent on other developments and measures that need to be resuscitated to peak performance in order to competitively compete holistically.

Such sectors are education from kindergarten levels. Infrastructure for education needs dramatic attention, inclusive of modern technology that can be accessed on the Chinese market. Africa as at now has not astutely taken on the sector which is a critical pivot for development.

Upgrading and improving the syllabus for teacher education programmes. Special attention must be given to the food security in rural areas where children can also access upgraded medical facilities impacting on the high mortality rates.

No greater impact will occur than by 2020 where the forecast for urbanisation will be devastating for sustainable growth. Today 40 percent of Africa’s population live in her cities. By 2020 it is projected that more than half of African households will have discretionary spending power, straining urbanisation and impacting on the pollution levels for which Africa will also have to comply.

Impacting on green solutions is the lack of refuse and waste recycling throughout Africa. The one in Nigeria in Lagos is at best a concept in its nurturing state. These industries are neglected across the continent. Metals, plastics and alternative manufacturing from recycled metals and plastics are lagging industries throughout African that enjoy high employment.

The four most advanced economies in Africa – Egypt, Morocco, South Africa and Tunisia currently enjoy advanced manufacturing and services industries. These countries are also classified as diverse economies and will face some challenges related higher labour costs and volatility in the export markets.

Africa has been exercising her economic policies and stimulating the heart of sovereign industries in order to achieve continental growth. So far we have every right to believe that we are on course for recovery and maybe a renaissance in the making.

Now more than ever, inter-continental remedies are needed to achieve stability, improve human rights, promote economic democracy outside of political ambitions and re-establish Africa as a continent proud of her heritage. To get to that desired destination, African leaders need to end avarice and imbibe dynamic patriotism wholly.

Statistics Courtesy: Ventures Africa.

Another Nigeria and Libya: Mali Forces and undue Executions

Mali could be on the verge of creating a haven for a long-term insurgency-style of continuous attacks that could gradually consume West Africa with the constant human rights abuses the Malian army has been accused of committing.

Mali's army has sealed off a central town amid allegations that some of its soldiers had summarily executed dozens of people allegedly connected to rebel fighters. The experience of Nigeria in the Boko Haram menace ought to be a foundation structure for counter-activities on the rebels.

The International Federation of Human Rights Leagues said on Thursday that in the central town of Sevare at least 11 people were executed in a military camp near a bus station and the town's hospital, citing evidence gathered by local researchers.

Credible reports also pointed to around 20 other people having been executed in the same area and the bodies having been dumped in wells or otherwise disposed of, the organisation said. At Niono, two Malian Tuaregs were executed by Malian soldiers, according to the FIDH. All these executions and killings are properly documented.

The rights group, Human Rights Watch, said its investigators had spoken to witnesses who saw the executions of two Tuareg men in the village of Siribala, near Niono. The group also said witnesses had reported "credible information" of soldiers sexually abusing women in a village near Sevare, and called on the government to urgently investigate these incidents, AFP news agency reported.

The majority of the al-Qaeda-linked rebels being hunted by the armies are either Tuaregs or Arabs, reports say.

 But Mali's army has denied the claims. General Ibrahima Dahirou Dembele, the Malian army chief, promised that any soldier involved in abuses would be brought to book.

"One mustn't get confused. Every white skin is not a terrorist or a jihadist and among the enemy which attacked our different position were many black skins. We are among brothers, whether one is black or white."

Jean-Yves Le Drian, the French defence minister, urged extreme "vigilance" against any abuses, saying the "honour of the (Malian) troops is at stake".

Laurent Fabius, the French foreign minister, said: "We cannot accept any rights violations. The international community will face a very serious situation if (the intervention force) is identified with abuses." The rebels in Mali are the same people NATO and the West armed against Gaddafi in Libya a Russian official said.

A circulating news now is that the rebels have become factional and one group is ready for negotiation. How credible this group will be is yet to be known as it is almost a tradition for rebel groups to split under such intense firepower.

Mali could end up becoming another Libya in which weapons will be freely circulated among groups after being delivered by Western powers. The Kremlin confirms this as well as Hillary Clinton in her statement delivered to congress on Wednesday.

Oxfam: World's Richest Countries can end Poverty

Oxfam has released a report revealing how the world's most wealthy nations can save the world from poverty. The report detailed how those at the upper rung of the financial ladder can salvage the heinous worm called poverty.

The $240 billion net income of the world's 100 richest billionaires would have ended poverty four times over, according to the London-based group's report. The group has called on world leaders to commit to reducing inequality to the levels it was at in 1990, and to curb income extremes on both sides of the spectrum.

The release of the report was timed to coincide with the holding of the World Economic Forum in Davos. The group says that the world's richest one percent have seen their income increase by 60 percent in the last 20 years, with the latest world financial crisis only serving to hasten, rather than hinder, the process.

"We sometimes talk about the 'have-nots' and the 'haves' - well, we're talking about the 'have-lots'. We're an anti-poverty agency. We focus on poverty, we work with the poorest people around the world. You don't normally hear us discuss wealth. But it's gotten so out of control between rich and poor that one of the obstacles to solving extreme poverty is now extreme wealth," Ben Phillips, a campaign director at Oxfam, told Al Jazeera.

"We can no longer pretend that the creation of wealth for a few will inevitably benefit the many – too often the reverse is true," said Jeremy Hobbs, an executive director at Oxfam. "Concentration of resources in the hands of the top one per cent depresses economic activity and makes life harder for everyone else – particularly those at the bottom of the economic ladder.

"In a world where even basic resources such as land and water are increasingly scarce, we cannot afford to concentrate assets in the hands of a few and leave the many to struggle over what’s left." Hobbs said that "a global new deal" is required, encompassing a wide array of issues, from tax havens to employment laws, in order to address income inequality.

Closing tax havens, the group said, could yield an additional $189 billion in additional tax revenues. According to Oxfam's figures, as much as $32 trillion is currently stored in tax havens.

In a statement, Oxfam warned that "extreme wealth and income is not only unethical it is also economically inefficient, politically corrosive, socially divisive and environmentally destructive."

The financially buoyant countries are not ready to be committed to the betterment of humanity. Their main interest has always been and will always be the continual entrenchment of financial blissfulness for the microscopic few at the expense of the wretched masses.

Africa is at the centre of the suffering yet she supplies the world the needed resources. Africa gives life to others but she is killing herself.