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intelligence


ANOTHER BRIC IN THE WALL

Economist Moin Siddiqi reports on the opportunities in building Africa’s infrastructure networks

IN HER PAPER TO HARVARD UNIVERSITY LAST MAY, WORLD BANK MANAGING DIRECTOR NGOZI OKONJO-IWEALA INDICATED THAT SUBSAHARAN AFRICA IS ON THE VERGE OF JOINING THE BRIC COUNTRIES, WITH THE GROWTH OF ITS TRILLION-DOLLAR ECONOMY HAVING OUTSTRIPPED BOTH BRAZIL AND INDIA IN THE PAST DECADE....

The huge infrastructure investment which contributed to the successful staging of the FIFA World Cup in South Africa is only the tip of the iceberg of opportunity across this vast and diverse continent. UK companies played their part in South Africa’s World Cup success and are doing good business across Africa. Yet these rapidly developing markets hold much more potential.

There is a misconception that the whole African continent is impoverished. It is true that extreme poverty exists, but many countries are developing rapidly. The vast and diverse continent is rich in natural resources and experiencing its fastest growth in decades, with low inflation, robust trade expansion, increased foreign direct investment (FDI) and less political upheaval than previously. Some 80 per cent of African countries registered positive GDP growth in 2009 compared to only 10 per cent of the Organisation for Economic Cooperation and Development (OECD) members. The International Monetary Fund projects regional growth at 4.7 per cent this year, edging up to 5.8 per cent in 2011.