Economy - The Africa Rising illusion: continent needs more than just growth

By K.Y. Amoako, President of African Center for Economic Transformation

We hear a lot these days about “Africa Rising”—and with good reason. The region is growing at a record rate, with six of the world’s 10 fastest growing economies in the last decade in Sub-Saharan Africa. Apart from a relatively small handful of states where conflict is affecting development, growth is good, and in some cases exceptional. In 2012, Sierra Leone grew by an impressive 17.2%, and Angola, Nigeria, Ethiopia and Rwanda have all consistently exceeded 7% for the last few years.

Enabled by reforms in macroeconomic management, by high commodity prices, and by increasing exports of extractives, this growth has created a spirit of optimism, encouraged foreign investment, and provided an incentive for young Africans to return home after being educated abroad. Increasing earnings among some sectors of society have supported the emergence of an African middle class, with promising purchasing power.

But beneath the surface it’s not that simple. The rate of African growth may have increased, but the structure of most Sub-Saharan economies has not changed much over the past 40 years. African economies are still narrowly based on the production and export of unprocessed agricultural products, minerals, and crude oil. There is little manufacturing—indeed, in many countries the share of manufacturing in GDP is lower now than in the 1970s. Read more..,