Africa GDP seen rising-Africa’s economy will expand 4.5 percent this year

May 28, 2012

Africa, Business, International

Africa GDP seen rising

By Duncan Miriri | Reuters

ARUSHA, Tanzania  – Africa’s economy will expand 4.5 percent this year before accelerating to 4.8 percent in 2013, the African Development Bank said on Monday though it warned the festering euro zone crisis may hurt demand for African exports.

AfDB said Africa’s economy grew 3.4 percent in 2011, with North Africa’s economic output expanding 0.5 percent and sub-Saharan Africa growing more than 5 percent.

“The economic outlook for Africa remains optimistic. Natural resource-rich economies are expected to do better than more mature emerging economies,” AfDB said in its annual African Economic Outlook.

However, AfDB cautioned that the euro zone’s economic woes might dent demand for African commodities. African economies depend heavily for European markets for exports including tea, coffee, cotton, sugar as well as the tourism sector.

“The continued economic crisis in the euro area may reduce demand for African exports, while lowering external resource inflows,” it said.

The resource inflows include foreign direct investments and remittances.

http://uk.reuters.com/article/2012/05/28/africa-economy-idUKL5E8GS4CD20120528

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Video: African Economic Outlook
 
Africa has been experiencing fast economic growth. From 2001-10, six of the world’s ten fastest-growing economies were in sub-Saharan Africa. Africa weathered the 2008 financial crisis well, with many economies already growing at rates close to their pre-crisis averages. Assuming that the current market turmoil in developed countries passes without serious consequences for Africa, prospects for the coming decade seems equally good.
 
With almost 200 million people aged between 15 and 24, Africa has the youngest population in the world. And it keeps growing rapidly. The number of young people in Africa will double by 2045. Between 2000 and 2008, Africa’s working age population (15-64 years) grew from 443 million to 550 million; an increase of 25%. In annual terms this is a growth of 13 million, or 2.7% per year (World Bank 2011a). If this trend continues, the continent’s labour force will be 1 billion strong by 2040, making it the largest in the world, surpassing both China and India (McKinsey. Global Institute, 2010).
 
Africa’s youth population is not only growing rapidly, it is also getting better educated. Based on current trends, 59% of 20-24 year olds will have had secondary education in 2030, compared to 42% today. This will translate into 137 million 20-24 year olds with secondary education and 12 million with tertiary education in 2030 (Figure 6.1). Although significant quality gaps remain, these trends offer an unrivalled opportunity for economic and social development if the talents of this swiftly increasing reservoir of human capital are harnessed and channelled towards the productive sectors of the economy. However, they could also present a significant risk and threat to social cohesion and political stability if Africa fails to create sufficient economic and employment opportunities to support decent living conditions for this group.
 
Although many jobs have been created, there have not been enough to accommodate the number of young people in search of work. The International Labour Organization (ILO) estimates that between 2000 and 2008 Africa created 73 million jobs, but only 16 million for young people aged between 15 and 24. As a result, many young Africans find themselves unemployed or, more frequently, underemployed in informal jobs with low productivity and pay. Of Africa’s unemployed, 60% are young people and youth unemployment rates are double those of adult unemployment in most African countries. The problem is particularly acute in middle-income countries (MICs). In 2009 in North Africa youth unemployment was 23.4%, and the ratio of youth-to-adult unemployment rates was estimated at 3:8. In South Africa, youth unemployment was 48% and the ratio of youth-to-adult unemployment rates was estimated at 2:5. Among the employed young, the proportion of work in informality is significantly higher than that of adults.
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Video: Nigeria’s Economy

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The African Development Bank Group – Fast Facts

Founded 1964
Constituent Institutions
-The African Development Bank (ADB)
-The African Development Fund (ADF)
-The Nigeria Trust Fund (NTF)
Headquarters Abidjan, Côte d’Ivoire
Temporary relocation Tunis, Tunisia
Shareholders
-53 African countries (regional member countries)
-24 non-African countries (non-regional member countries)

Non-regional member countries
Argentina
Austria
Belgium
Brazil
Canada
China
Denmark
Finland
France
Germany
India
Italy
Japan
Korea
Kuwait
Netherlands
Norway
Portugal
Saudi Arabia
Spain
Sweden
Switzerland
United Kingdom
United States of America
Mission To promote sustainable economic growth and reduce poverty in Africa
President Donald Kaberuka
Authorized Capital at December 31, 2010 Unit of Accounts (UA) 67.69 billion
Subscribed Capital at December 31, 2010 UA 23.92 billion
Paid-up Capital at December 31, 2010 UA 2.38 billion
Total Cumulative Approvals, 1967–2010 3,526 loans and grants totaling UA 55.93 billion

The African Development Bank (AfDB) Group’s mission is to help reduce poverty, improve living conditions for Africans and mobilize resources for the continent’s economic and social development. With this objective in mind, the institution aims at assisting African countries – individually and collectively – in their efforts to achieve sustainable economic development and social progress. Combating poverty is at the heart of the continent’s efforts to attain sustainable economic growth. To this end, the Bank seeks to stimulate and mobilize internal and external resources to promote investments as well as provide its regional member countries with technical and financial assistance.

The institution’s greatest assets are its human resources which come from a wide geographic area. The Bank is an equal opportunity employer and firmly believes that recruitment from a wide geographical and cultural spectrum enriches the institution with varied talents, experiences and skills that will enhance the quality of human resources management and ultimately the realization of the Bank’s mission of reducing poverty across the continent.

In accordance with its policy of decentralization aimed at taking its operations closer to its beneficiaries, the Bank has, over the past few years, established about 23 field and country offices across the continent.

 

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