The Economists looks at Africa’s prospects and advantages amidst a shaky world economy. Is the continent’s virtual isolation it’s greatest asset?

Despite the litany of problems, the 48 countries of sub-Saharan Africa (hereafter referred to as plain Africa) are, by several measures, enjoying a period of unparalleled economic success. And despite the turmoil in the world’s financial markets, international investors still think they can make money there.

In 1990-94 annual GDP growth was a weak 0.9%; since then, growth has averaged closer to 5% (see chart 1). Before this autumn’s financial meltdown, the IMF was predicting GDP growth of 6.6% this year; now it is predicting only a slightly lower rate. Annual GDP growth per person was 1.1% in the late 1990s; from 2004 to 2006 it was around 4%. In 1990 47% of Africans lived in poverty; in 2004 41% did and, if present trends continue, only 37% will by 2015. Zimbabwe apart, most African countries have been bringing inflation down, even if the trend is now creeping up again, in line with the rest of the world.

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About the Author: Jonathan Gosier (Founder) is an American-born software developer, writer and social entrepreneur. He currently lives in Kampala, Uganda where he is working on two fronts: to encourage western businesses and investors to engage African entrepreneurs and to encourage the adoption of computers, programming and use of the internet in the developing regions of Africa. He is a huge advocate for promoting the ways in which a semantic web will benefit emerging economies in the world.

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