Real Estate Investor Magazine South Africa April 2016 | Page 16

Africa’s Fastest Growing Economies

Africa is bestowed with a young, fast-growing
population, which can be credited with the current
economic boom throughout the continent.
Growth in Sub-Saharan Africa is projected to pick up
in the coming year to an average of 4.6 percent and
an increase to 5.0 percent is expected in 2017. This
growth increase will be fuelled by domestic demand,
continuing infrastructure investment and private
consumption driven by lower oil prices.

Africa’s fast-emerging middle
class is now comprised of over
300 million people, with the
general consumer spending
across the continent hovering
past the $1 trillion mark.
Rwanda

Rwanda is a mostly rural country where 90% of
the population depends on subsistence agriculture
and some mineral and agro-processing. Tourism,
minerals, coffee and tea are the main sources of
foreign exchange. The 1994 genocide severely
damaged the fragile economy. However, Rwanda has
made substantial progress in stabilizing the economy
to and further than pre-1994 levels.
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Tanzania

The conduct of the recent general elections in
Tanzania have strengthened investor confidence
The country has largely completed its transition to
a market economy though the government retains a
presence in sectors such as telecoms, banking, energy
and mining. It has recently experienced high growth
rates owing to gold production and tourism. The
economy is also strengthened by telecommunications,
banking, energy, mining and agriculture. Agriculture
still accounts for more than one-quarter of GDP and
provides 85% of exports and employs 80% of the
country’s workforce.

Mozambique

Mozambique has attracted large investment projects
in natural resources translating to continuation of
the country’s high growth rates. Mozambique grew
an average annual rate of 6-8 percent in the decade
up to 2014. One of Africa’s strongest performers, It
is a country rich in natural resources. Revenues from
these vast resources, including natural gas, coal,
titanium and hydroelectric production could overtake
donor assistance within five years.

Cote D’Ivore

It is a country highly dependent on agriculture.
Agricultural activities engage roughly two-thirds
of the population. It is the world’s largest exporter
of cocoa beans. The economy is highly sensitive to
fluctuations in international prices and climatic
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