AFRICA REPORT
A new chapter
The coming of the 20th century brought
independence for many African countries.
During the dawn of the new millennium, the
Mother Land experienced what was termed ‘the
African economic boom’ – large economies
such as South Africa and Nigeria were starting
to grow substantially. This long anticipated
emergence was mainly influenced by the
political and infrastructural changes that were
being implemented to rightfully benefit the
indigenous people of the land, as opposed to
colonial powers.
Financial statistics at the beginning of 2013
showed that Africa was indeed growing at a
quick rate of 5.6%. Experts estimated that the
gross domestic product (GDP) would rise by an
average of 6% each year thereafter.
Who’s winning the race?
Right now, when examining the growth of the
Nigerian economy, it’s not hard to see that South
Africa is falling behind. Studies from 1990 to
2010 displayed how the precursor to this comes
from Nigeria replacing its pricing structure. In
addition, the diversification of the economy
has been responsible for more than just their
improved development; it’s also helped maintain
growth in the non-oil sectors.
And although the non-oil sectors have now grown
to include sectors such as Nigeria’s famous film
and music industry (Nollywood), e-commerce
and telecommunications; agricultural trade and
services (specifically crop production) continue
to be the main drivers of non-oil sector growth.
The oil sector’s growth and encouraging
performance was unfortunately not as impressive
as that of the non-oil sector (stumped by the
disruptions arising from oil theft, pipeline
vandalism and weak investments in upstream
activities with no new oil finds). When considering
the lucrative nature of the oil industry, this will
hopefully improve in the coming years.
IMBO/ ISSUE 32/ '14
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