Africa is on the brink of a major transformation. In the last decade, the continent is home to six of the world’s 10 fastest growing economies, and the number is expected to rise to seven in the next five years, according to projections by the International Monetary Fund (IMF). These projections are coming on the heels of the outlook for the region, which remains bright at a time when the rest of the world is facing political and economic challenges.
Developing nations, most of who are now the fastest growing economies in the world have become attractive partners for growth-hungry western nations. Powered by exports such as oil and gas to the rest of the world, Africa’s economy has been booming.
Even though not free from fallout of the global economic turmoil, the continent’s economy bounced back fast, in comparison with the developed nations that are still grappling for recovery. The World Bank forecasts the growth rate of Gross Domestic Product (GDP) for the sub-Saharan Africa to be 5.3 percent for 2012 and 5.6 percent for 2013, higher than the 4.9 percent for 2011.
The IMF put its estimated growth rate for the region at 5.5 percent for 2012. Furthermore, Africa is believed to have the highest rate of return on Foreign Direct Investment (FDI) of any developing region.