The African Economic Miracle: Myth or Reality

The majority of African nations have been enjoying a boom in earnings from the export of both agricultural and mineral commodities since the turn of the twenty-first century. This revenue stream, along with macro-economic reforms encouraged by the World Bank and International Monetary Fund, have resulted in the growth of a middle class to about 150 million persons, about 15 percent of sub-Saharan Africa. With disposable income, this middle class is attracting investors, especially in retail, consumer goods, and banking. The financial community is understandably enthusiastic about the potential for high yields on short-term investments. Nevertheless, major deficits exist in governance, agriculture, intraregional trade, and the business climate that are inhibiting true sustainable development. With growing urbanization and a growing class of still unemployable youth, African governments need to introduce reforms expeditiously if they are to fulfill the continent's great potential and avoid the disasters of crime, terrorism, and drugs-all of which are already creeping in.