Emerging Africa in the global economy
Arku Jasmine
Business News
For all its size and diversity, Africa has been marginalised as of little consequence to the rest of the world, says Ernst Stetter, the General Secretary of the Foundation for European Progressive Studies. But he warns that neglecting Africa could turn out to be a disastrous mistake.
This statement is one of the honest admissions by the rest of the world that the continent is gradually but relentlessly putting its house in order to play a leading role in the world marketplace.
Africa has abundant natural resources. The continent ranks first in the world in its reserves of gold, bauxite, chromites, cobalt and diamonds.
It is rich in palladium, phosphates, platinum group metals, titanium minerals, vanadium and zircon. African production accounts for 80 per cent of the world’s platinum group metals; 55 per cent of chromites; 49 per cent of palladium; 45 per cent of vanadium and up to 55 per cent of gold and diamonds.
Africa offers easy market access to Europe, as well as to the US and recently China. In many cases as it is for Ghana, the economies of Africa offer extraordinary investment opportunities with high rates of return.
The historical links of countries in Africa and its geography provide European investors a comparative advantage over North America and Asia, including China. The political climate in the continent is gradually changing towards democracy, respect for the rule of law and the protection of human rights.
According to Mr Stetter, globalisation should have been as valuable to Africa as it has been elsewhere, but because many African countries have not been in a position to open up their economies and attract investment and trade, they missed out.
“It is important to point out here that some parts of Africa have witnessed, since 2004 in particular, upturns in economic growth that are far more than a passing phenomenon, even if this is mostly fuelled by high prices for raw materials,” he wrote on Europe’s World, a blog onEurope.
He added, “This demonstrates that Africa has it in its power to move forward and achieve sustainable development, provided that Africa and the industrial world can work together.”
Indeed, African countries have become more politically stable over the past decade, with growth surging up consistently. The continent has grown at an average growth rate of 5.5 per cent of Gross Domestic Product over the last decade, with the trend expected to continue even when many rich economies are experiencing recession.
Many economies on the continent have performed well due to better regulatory regimes, structural reforms, higher growth rates, rising foreign direct investment and foreign exchange reserves, robust export performance, and lower debt levels.
This is the Africa of the future that has been attracting a lot of partnership from the European Union, China, Japan and the U.S.
The momentum, however, needs to continue to move many of the economies from the frontier stage to an emerging status. Ghana recently moved from a developing country status to a lower middle income bracket, with per capita income of US$1600.
It is for such reasons that the JAK Foundation has instituted the Global Development Lecture series to stimulate discussions into how Africa can improve on its lot and play it big in the global space.
The John Agyekum Kufuor (JAK) Foundation Global Development Series was instituted by the former President of Ghana John Agyekum Kufuor, Chair of the Foundation to provide a forum for global thought leaders to share their views on contemporary and future events of global importance.
The Foundation organised its first lecture on September 20, 2011 in Accra and was delivered by the former President of the Federal Republic of Germany, Mr Horst Koehler, on the topic “Walking the tightrope: balancing state, market and society”.
The second lecture, which came off in February 2013, was delivered by Dr Ngozi Okonjo-Iweala, the Minister of Finance and Coordinating Minister of the Economy of Nigeria, on the topic “What Africa Must Do to Claim the 21st Century”.
This second lecture came at the back of the realisation that in spite of the gains in the second half of the 1990s, Sub-Saharan Africa entered the 21st century habouring many of the world's poorest countries.
The third lecture in the series is, thus slated for September 12 at the Accra International Conference Centre.
On the theme, “Africa - Emerging Economies and Globalisation”, the lecture will be delivered by one of Africa’s finest ministers with development approach, the former Finance Minister of South Africa, Dr Trevor Manuel.
Under the distinguished patronage of the former president himself and chaired by a renouned industrialist, economist and lawyer, Mr Tony Oteng-Gyasi, the Managing Director of Tropical Cable and Conductor Limited, the third Global Development Lecture is in collaboration with the Graphic Communications Group Ltd.
GRAPHIC BUSINESS, a publication of the Graphic Group, is the title sponsor of the event, which is also expected to draw participants from the sub-region, politicians, the private sector, civil society, academia and the general public.
Other partners include South African Airways, pwc, with other television and radio collaborators.
President Kufuor believes in the importance of good governance in global development. Without good governance and sound leadership, progress can never be achieved in any society. The JAK Foundation's mission is, thereby, hinged on the three inter-related pillars of leadership, governance and development.
In recognition of his commitment to good governance and sound leadership and global development, President Kufuor was chosen to be the inaugural lecturer at the MIT Legatum Pericles Series, which is for global leaders of distinction to share experiences with faculty members and students.
The series, sponsored the Legatum Centre for Development and Entrepreneurship, aims to expose the broader MIT and Cambridge communities to entrepreneurship in emerging markets and for-profit solutions to development challenges.
By Samuel Doe Ablordeppey & Suleman Mustapha/Graphic Business/Ghana
This statement is one of the honest admissions by the rest of the world that the continent is gradually but relentlessly putting its house in order to play a leading role in the world marketplace.
Africa has abundant natural resources. The continent ranks first in the world in its reserves of gold, bauxite, chromites, cobalt and diamonds.
It is rich in palladium, phosphates, platinum group metals, titanium minerals, vanadium and zircon. African production accounts for 80 per cent of the world’s platinum group metals; 55 per cent of chromites; 49 per cent of palladium; 45 per cent of vanadium and up to 55 per cent of gold and diamonds.
Africa offers easy market access to Europe, as well as to the US and recently China. In many cases as it is for Ghana, the economies of Africa offer extraordinary investment opportunities with high rates of return.
The historical links of countries in Africa and its geography provide European investors a comparative advantage over North America and Asia, including China. The political climate in the continent is gradually changing towards democracy, respect for the rule of law and the protection of human rights.
According to Mr Stetter, globalisation should have been as valuable to Africa as it has been elsewhere, but because many African countries have not been in a position to open up their economies and attract investment and trade, they missed out.
“It is important to point out here that some parts of Africa have witnessed, since 2004 in particular, upturns in economic growth that are far more than a passing phenomenon, even if this is mostly fuelled by high prices for raw materials,” he wrote on Europe’s World, a blog onEurope.
He added, “This demonstrates that Africa has it in its power to move forward and achieve sustainable development, provided that Africa and the industrial world can work together.”
Indeed, African countries have become more politically stable over the past decade, with growth surging up consistently. The continent has grown at an average growth rate of 5.5 per cent of Gross Domestic Product over the last decade, with the trend expected to continue even when many rich economies are experiencing recession.
Many economies on the continent have performed well due to better regulatory regimes, structural reforms, higher growth rates, rising foreign direct investment and foreign exchange reserves, robust export performance, and lower debt levels.
This is the Africa of the future that has been attracting a lot of partnership from the European Union, China, Japan and the U.S.
The momentum, however, needs to continue to move many of the economies from the frontier stage to an emerging status. Ghana recently moved from a developing country status to a lower middle income bracket, with per capita income of US$1600.
It is for such reasons that the JAK Foundation has instituted the Global Development Lecture series to stimulate discussions into how Africa can improve on its lot and play it big in the global space.
The John Agyekum Kufuor (JAK) Foundation Global Development Series was instituted by the former President of Ghana John Agyekum Kufuor, Chair of the Foundation to provide a forum for global thought leaders to share their views on contemporary and future events of global importance.
The Foundation organised its first lecture on September 20, 2011 in Accra and was delivered by the former President of the Federal Republic of Germany, Mr Horst Koehler, on the topic “Walking the tightrope: balancing state, market and society”.
The second lecture, which came off in February 2013, was delivered by Dr Ngozi Okonjo-Iweala, the Minister of Finance and Coordinating Minister of the Economy of Nigeria, on the topic “What Africa Must Do to Claim the 21st Century”.
This second lecture came at the back of the realisation that in spite of the gains in the second half of the 1990s, Sub-Saharan Africa entered the 21st century habouring many of the world's poorest countries.
The third lecture in the series is, thus slated for September 12 at the Accra International Conference Centre.
On the theme, “Africa - Emerging Economies and Globalisation”, the lecture will be delivered by one of Africa’s finest ministers with development approach, the former Finance Minister of South Africa, Dr Trevor Manuel.
Under the distinguished patronage of the former president himself and chaired by a renouned industrialist, economist and lawyer, Mr Tony Oteng-Gyasi, the Managing Director of Tropical Cable and Conductor Limited, the third Global Development Lecture is in collaboration with the Graphic Communications Group Ltd.
GRAPHIC BUSINESS, a publication of the Graphic Group, is the title sponsor of the event, which is also expected to draw participants from the sub-region, politicians, the private sector, civil society, academia and the general public.
Other partners include South African Airways, pwc, with other television and radio collaborators.
President Kufuor believes in the importance of good governance in global development. Without good governance and sound leadership, progress can never be achieved in any society. The JAK Foundation's mission is, thereby, hinged on the three inter-related pillars of leadership, governance and development.
In recognition of his commitment to good governance and sound leadership and global development, President Kufuor was chosen to be the inaugural lecturer at the MIT Legatum Pericles Series, which is for global leaders of distinction to share experiences with faculty members and students.
The series, sponsored the Legatum Centre for Development and Entrepreneurship, aims to expose the broader MIT and Cambridge communities to entrepreneurship in emerging markets and for-profit solutions to development challenges.
By Samuel Doe Ablordeppey & Suleman Mustapha/Graphic Business/Ghana