Economy of Africa

Overview
The economy of Africa consists of the trade, industry, agriculture, and human resources. As of 2012, approximately 1.07 billion people were living in 54 different countries. Africa is a resource-rich continent but many African people are poor. Recent growth has been due to growth in sales in commodities, services, and manufacturing.
Population GDP GDP growth GDP per capita Millionaires (US$) Income of top 10% People living less than US$1 per day External debt as a percent of GDP External debt payments a as percent of GDP Foreign aid revenue as a percent of GDP 1,100,000,000 (12%)(2012[1]) Currency: US$1.184 trillion, 1.80 trillion (2009) PPP: US$ 2.200 trillion(2009) Per capita: 5.16% (20042006) Currency: US$1,200, 1,000 (2009) PPP: US$1,968, 1,500 (2009) 100,000 (0.01%) 44.7% 36.2% 60.7% (1998) 25.5% (2007) IMF 4.2% 3.0% (2007) IMF 3.2% (2001)

Opportunities
Africa's opportunities, which range in risk from investing in emerging market funds or one of the listed multinationals active in Africa to trading with African partners, include: oil and gas (Angola and Libya); mining (West and Central Africa); privatizations (South Africa and Nigeria); international trade (oil producers and SADC); infrastructure (pipelines, roads, telecommunications); stock exchanges that are mushrooming in many countries using educated English and French speaking African nationals leisure (big game + beaches + golf + climate + satellite + Internet + cell + low cost structure = huge telecommuting opportunity)

Macroeconomic Prospects
After an initial rebound from the 2009 world economic crisis, Africas economy was undermined last year by the Arab uprisings. The continents growth fell back from 5% in 2010 to 3.4% in 2011. With the recovery of North African economies and sustained improvement in other regions, growth across the continent is expected to accelerate to 4.5% in 2012 and 4.8% in 2013. Short-term problems for the world economy remain as Europe confronts its debt crisis. Commodity prices -- crucial for Africa -- have declined from their peak due to weaker demand and increased supply, and some could fall further. But prices are expected to remain at levels favorable for African exporters, significantly above the average levels of the five years before the global 2009 crisis.

Overall, the 2012 African Economic Outlook presents an optimistic scenario for the continent. Africas impressive growth for more than a decade and its resilience to the deep global recession support such optimism. AEO Report

Africas domestic demand was boosted through higher private investment, public consumption, infrastructure investment and private consumption. Consumers have kept spending despite high food and fuel prices and this has been supported by higher wages and food and fuel subsidies. Africas growing middle class continues to boost consumption, residential construction and private investment. Inflows of remittances and Foreign Direct Investment (FDI) also supported domestic demand in many countries. The broadening growth pattern is also reflected on the supply side. In resource-rich countries, oil and mining continues to boost growth but non-resource sectors are also expanding, although from a low base.

Risks and Challenges

The biggest challenge to doing business in Africa is the lack of quality information about Africa; the MBendi web site, which you are using as you read this sentence, aims to overcome that shortcoming. Some of the other challenges of Africa are: fluctuating currencies bureaucratic red tape, which is slowly getting easier to wade through graft and corruption, as much a fault of the non-Africans who pass the brown paper bags as the poor and often unpaid civil servant who accepts the bag nepotism wars and unrest, though the changes in South Africa are starting to create a ripple of peace and democracy throughout the region lack of local capital Monopolies such as marketing boards, state trading firms, foreign exchange restrictions, trade taxes and quotas and concentration on limited commodities all place a disincentive on exports, thus delinking Africa from the world economy. lack of infrastructure, though in areas such as telecommunications and energy, Africa is able to use new technologies to leapfrog more advanced economies Lack of demand for labor is the biggest obstacle to youth employment in African labor markets, supply factors are important too but less so.

However, none of these challenges is insurmountable; in fact, some entrepreneurs would contend that African risk is lower than that even of North America.

Sectors for Business in Africa

Agro-business, tourism and infrastructure are some of the areas which are having a vast potential in terms of trade. Countries like Ghana and Botswana have lots to offer to business through their ports, fisheries, and tourism. One of the most important facts to keep in mind is the political stability in the country so you need to invest only in that African country which is politically stable and offering wide scope of business or else you will suffer from losses alone. US exporters are able to find a wide market in African countries in the fields of cosmetics, oil and gas extraction, food processing, telecommunications, used clothing and many more of similar kinds.

Agricultural Production in South Africa

Grain industry is one of the most flourishing industries of South Africa. In a large part of the country grains like maze, wheat, sugarcane, sunflowers are grown. South Africa is said to be one of the major producers of maize.

Types of Agricultural Products Which are Grown

The production of wheat is basically confined to the Western Cape and Free States. In the areas where it rains in summer months, Sorghum is being cultivated on a large scale. The Sorghum growing areas include Mpumalaga, the Free State, Limpopo and many more. Sugarcane is grown on a vast scale in South Africa. Areas where sugarcane production is being carried out are the Pondoland, Eastern Cape. Agricultural products are being kept in various segments like cereals, fruits and vegetables, oilcrops, pulses. There are also included various kinds of spices and sweetners. The other products includes dairy products, livestock, poultry, fisheries. Amongst the fruits which are grown as well as exported out of South Africa includes the avocadoes, litchis, guavas, bananas, peanuts. Apart from these, potato crop too is being grown in Free State and Mpumalanga. Agricultural products like green chillies, onions, sweet corn too contribute a lot to the economy of South Africa.