Euromoney (March Issue)
“Investors are probably being too bullish about the size and buying power of Africa’s middle class.” Following a 2011 African Development Bank (ADB) report which pegged the middle class at 313 million, “it has become commonplace to hear wonderful things about the rise of Africa’s middle class.” The ADB’s figure, however, is misleading as it includes individuals making between $2-5 per day. Using a more conservative definition of those making $10-20 per day, Africa’s middle class would probably number less than a quarter of the ADB’s estimate. “Africa has vast potential, but investor sentiment today is pricing in a level of progress towards it that is not yet backed up by facts.”
Tags: ADB, Africa, Investors, Middle class, Misleading, Potential, Sentiment
The Economist (March 2)
Africa has achieved a dramatic transformation. “Never in the half-century since it won independence from the colonial powers has Africa been in such good shape.” The credit belongs to the Africans themselves. “The continent’s main saviours are its own people. They are embracing modern technology, voting in ever more elections and pressing their leaders to do better. A sense of hope abounds.” The transformation is laudable, but “still incomplete. The danger is that Africa settles for today’s pace of change. Only if Africans raise their ambitions still further will they reach their full potential. If aspiring Africa wants a new dream, it should be creating a common market from the Med to the Cape. That would be a boon to trade, enterprise and manufacturing: it would also get rid of much of the petty corruption and save lives.”
Tags: Africa, Common market, Corruption, Elections, Leaders, Manufacturing, Technology, Trade, Transformation
The Economist (November 10)
“Greece will remain a disaster until it gets the treatment given to heavily indebted poor countries in the past.” Short-term rescue loans won’t work. “The experience of dozens of debt-ridden countries in Latin America and Africa holds lessons that Greece’s rescuers ought to heed…. The most indebted started to recover only when their debts, including those owed to official creditors, were slashed.”
Washington Post (March 20)
“Our long economic winter is a pleasant summer in distant places.” Developed nations have battled economic insecurity over the past several years, but things have actually gotten better in much of the world. Extreme poverty “has been declining in every developing region” and, for the first time since 1981, the rate of extreme poverty is less than 50% in Africa. The UN’s first Millennium Development Goal was to halve the global rate of extreme poverty by 2015. That goal was accomplished in 2010. With these achievements in mind, things aren’t as bad as they might otherwise seem.
Tags: Africa, Developed nations, Developing nations, Extreme poverty, Millennium Development Goal, UN
The Economist (April 20)
African countries welcomed China with open arms. Supplying over a third of China’s oil, Africa’s largest trading partner is now China. Good will, however, is in shorter supply. Africans are accusing China of “ripping them off.” Tension arises from the poor, often dangerous, working conditions provided by some Chinese employers. The shoddy construction of some pledged public works generates more complaints. The Economist reports a “Chinese-built road from Lusaka, Zambia’s capital, to Chirundu, 130km (81 miles) to the south-east, was quickly swept away by rains.” In the capital of Angola, “cracks appeared in the walls” of a Chinese-built hospital “within a few months and it soon closed.” Trade is still booming, but suspicions are growing.
