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Africa

The Africa of Tomorrow

Ryan Hahn's picture

Is Africa the next hotspot for international investment? That's one of the contentions of the McKinsey Global Institute in a recent report entitled Lions on the Move: The progress and potential of African economies. Collectively, African economies saw a significant uptick in growth over the last decade, with GDP growing at a 4.9 percent annual rate from 2000 through 2008.

As part of Asli's FPD Chief Economist Talk series, Susan Lund, the principal author of the report, came to the World Bank last week to discuss her findings. A video of her talk appears below the jump. The talk itself runs to the 29-minute mark, and the Q&A that follows runs another 52 minutes. Clearly, this presentation captured the attention of World Bank staff.

Lions on the Move: The Progress and Potential of African Economies

Editor’s Note: The following blog post was contributed by Susan Lund, Ph.D., Research Director of the McKinsey Global Institute, McKinsey & Company’s business and research arm. Dr. Lund will be making a presentation at the World Bank on July 20th summarizing the institute’s new report, Lions on the move: The progress and potential of African economies, which can be downloaded for free at www.mckinsey.com/mgi.

Tomorrow I will have the opportunity to present new research on Africa's economic prospects at the World Bank, home to many Africa experts and the source of so much invaluable research on the region. I have no doubt the combination of expertise from the McKinsey Global Institute and the World Bank will produce a lively discussion. As you well know, Africa continues to face many challenges, including poverty, disease and hunger. But our report shows Africa is also a land of great progress and potential. In this blog entry, I briefly summarize some of our key findings. We hope our report will provide a useful fact-base for the World Bank in its lending programs and dialogue with Africa’s policy makers and private sector.

We at McKinsey find many of our business clients are eager for insights into Africa’s recent acceleration in GDP growth. Africa’s collective economy grew at a 4.9 percent annual rate from 2000 through 2008, twice as fast as the pace of the preceding two decades. Africa is the third fastest growing economic region in the world, after emerging Asia and the Middle East. The continent’s combined economic output, valued at $1.6 trillion in 2008, is now roughly equal to Brazil’s or Russia’s. Africa offers investors the highest rate of return of any developing region.

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