“Just as Beijing's Olympics was a statement of China's growing global importance, so too one hopes the 2010 World Cup will be a statement of Africa's continued rise,” says Dr. Gerard Lyons, Chief Economist and Group Head of Global Research.
Whilst much of the global economic attention has been on China and Asia, there has been phenomenal change on the ground across Africa, according to the report. Whilst the continent was hit hard in 2009 by the global recession, one should not overlook the fact that 2008 marked the fifth successive year of growth above 5 per cent.
Moreover, unlike earlier recessions, Africa has rebounded quickly from the recent recession largely because of improved economic policies and the region’s deepening and widening trade and investment ties with Asia.
Africa’s growing commodity exports to the Asian powerhouses China and India and the rising investment of Chinese companies in Africa’s roads, airports, power plants and other infrastructure projects have helped shield the continent from the turmoil in Europe, the region’s traditional business partner.
The report says the “arc of growth” stretching from China through India and South Asia and into Africa will be driven by Africa’s abundant resources and its eventual emergence as a manufacturing hub, helped by its huge population – now around 1bn and expected to double by the middle of this century.
“If we are right, this will allow Africa to make significant inroads in the coming years and decades in solving some of its biggest challenges, including poverty, health and jobs,” Dr. Lyons said.
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