To discover some of the key reasons why Africa is expending rapid economic growth and is set to become a new economic power, simply continue reading to discover some of the key factors, which are currently influencing economic growth in Africa.
Key factors which influence economic growth in Africa:
Industrialization in Africa:
In recent years the number of factories in Africa has multiplied at a fast rate. Which means that it’s becoming far more affordable for businesses to produce high quality products in Africa. Which they can then sell domestically or internationally. In the future a large proportion of the goods which are purchased in Africa may be produced in Africa. Which would be a huge win for Africa as a continent.
More Africans are choosing to purchase African made products:
While in the past, individuals in many parts of Africa would have no choice but to purchase expensive, imported products from foreign countries, as a direct result of industrialization in Africa, more individuals are able to choose to support local, African owned businesses. As more businesses start to open world class factories in Africa, expect to see Africa’s economies flourish.
Globalization in Africa:
As the world is becoming an increasingly small marketplace, thanks to the dominance of the internet, African entrepreneurs are now able to start their own online businesses. While many African business owners produce their products in Africa, other entrepreneurs may choose to design products which they can have made in China. Where production costs are often much lower than in Africa.
Pro business policies:
Another reason why business is thriving in Africa is that many African governments are introducing pro business policies which encourage their citizens to start their own businesses. As an example, some African nations have chosen to give out business loans or grants to aspiring entrepreneurs who are able to produce a strong, well thought out business plan. While other African nations are linking new entrepreneurs with more experienced business mentors, who’ll be able to help them build successful business empires.
International philanthropy and assistance:
A wide variety of government led and private organizations have begun to offer economic aid to African countries and industries. In order to help African businesses flourish. As an example, there are international non profit organizations which operate within Africa which help support the agricultural industry. Such organizations often provide free training programs for local youth.
So if you were interested in some of the factors which are currently contributing to the unprecedented growth which Africa is experiencing, hopefully you found some of the information listed above interesting.