The Next Asia Is Africa: Inside the Continent’s Rapid Economic Growth

Africa, with a population expected to roughly double by mid-century, has become recognized as the world’s fastest growing continent. But the less-told story is of Africa’s economic rise. In the last decade Africa’s overall growth rates have quietly approached those of Asia, and according to projections by the IMF, on average Africa will have the world’s fastest growing economy of any continent over the next five years.

Seven of the world’s 10 fastest-growing economies are African. The continent is famously resource rich, which has surely helped, but some recent studies suggest that the biggest drivers are far less customary for Africa, and far more encouraging for its future: wholesale and retail commerce, transportation, telecommunications, and manufacturing.

A recent report by the African Development Bank projected that, by 2030, much of Africa will attain lower-middle- and middle-class majorities, and that consumer spending will explode from $680 billion in 2008 to $2.2 trillion. According to McKinsey and Co., Africa already has more middle class consumers than India, which has a larger population. Goldman Sachs recently put out a report, “Africa’s Turn,” making similar points.

American media have largely failed to pick up on these trends, hewing instead to their longrunning traditional narratives of African violence and suffering to the exclusion of most other news. Corporate America, though, is proving itself increasingly attentive to Africa as a big new growth story. Big companies, from retail to technology, are approaching Africa as a promising new growth frontier. Many are already investing heavily there.

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