Africa Enjoying Newfound Optimism
As more Africans move out of poverty and become middle-class consumers, they are increasingly in a position to drive investment, support entrepreneurship, and improve education.
In the latest issue of the IMF’s quarterly magazine, Finance & Development (F&D), articles by a range of African experts confirm the upbeat outlook for the continent and, while acknowledging continued and deep-rooted poverty, spell out what Africa needs to do to further spur opportunities for growth.
IMF Managing Director Christine Lagarde will visit Nigeria and Niger from December 18–22, on her first trip to Africa since her appointment earlier this year. Lagarde will hear from policymakers, the African private sector, and civil society about the challenges facing African countries, and underline the IMF's commitment to further reinforce the IMF’s partnership with sub-Saharan Africa.
Middle-class engine
Harvard professor Calestous Juma writes in F&D's cover story that a growing middle class—now over one-third of the population according to the African Development Bank (AfDB)—is shifting global perceptions about Africa’s prospects. The traditional focus on eradicating poverty in Africa “distracted both African authorities and international donors from serious consideration of ways to promote prosperity infrastructure development: technical education, entrepreneurship, and trade,” says Juma.
The African middle class still has comparatively little to spend by Western or Asian standards. But better economic policies, governance, and use of natural resources, coupled with more business-friendly policies and stronger demand for Africa’s commodities from emerging economies such as Brazil, China, India, and South Africa have led to Africa’s consistently high growth levels.
The new middle class is young—nearly 70 percent under the age of 40—and in the acquisitive stage of their lives, spurring consumer spending.
Across Africa, says Juma, change is in the air.
Growth for the poor
The story is not all rosy of course. Poverty will be a fact of life in Africa for a long time: one-third of all Africans will still be extremely poor in 2060, living on less than $1.25 a day, according to the AfDB. While it helps those who are in immediate need, an emphasis on aid does not encourage Africa to aspire to higher...
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