Analysis of Africa’s Economy

Analysis of Africas Economy Several economists around the world are wondering whether the majority of Africans are benefiting from investment and profits originating from the continent. African leaders have been in the media claiming that Africa is experiencing one of the highest economic growth rates in the recent past. However, a growing gap between the rich and the poor, increase in cost of living and cost of consumer goods has disproportionate effects on working people as well as the poor. Countries such as Nigeria and Ghana that have reported to be undergoing economic growth are experiencing internal crisis linked to a rising cost of living and need to increase government expenditure on infrastructural development (Ndulu 5). Despite the fact that Nigeria was named as the largest economy in Africa, its women, youth, farmers and workers are increasing their demand for access to quality life, resources and wealth. Furthermore, several alarming reports indicate that the economic growths in various parts of Af rica are more complicated than the leaders’ indicate. As result, a research was conducted to unearth the issues behind the economic problems, how African governments and leaders can address them (Ndulu 37). The major problem investigated is the interconnection between economy, social and political leadership with the current economic situation across Africa. It was crucial to analyze case studies and literature reviews containing information on African Economy. They analyzed relevant trade publications, annual economic reports, newspapers, magazines and on-line databases. Because of the time factors, the researchers relied mostly on web for data because it is faster and economical. Volunteers from public and private sectors, African economists, workers, International Monetary Fund, World Bank and African Development Bank provided necessary literature through the publications. The large pool of participants allowed the researchers to obtain wide range of data that was then cro sschecked against other data to ascertain its validity. It was necessary to analyze data from various African countries such as Nigeria, Ghana, Kenya, Democratic Republic of Congo and South Africa. Nigeria was preferred because it is the economic powerhouse of Africa while Ghana is on the right path to democracy in Africa. Kenya seems to growing both democratically and economically while Democratic Republic of Congo was considered because it has vast natural resources. It was also necessary to compared the economies of such countries, analyze the various natural resources found in those countries, evaluate various sources of income. Finally, analysis of the relationship between democracy and economic growth, natural resources and economic growth and the relationship between economic growth and living standards of individuals was crucial (Ndulu 179). The research process indicates that African economy is likely to grow up to 4.7% during this year and accelerate to 5% in 2015. However , the growth in economy does not translate to infrastructure development, job creation, improved standards of living as well as reduction of high poverty level as well reducing inequality in Africa (African Development Bank 1). West African countries like Nigeria and Ghana continue to experience highest levels of economic levels ranging between 6.7% – 7% and are likely to increase further by 2015. The economic growth is due to investment in minerals and oil, democratic governments and good leadership. East Africa is equally experiencing economic growth that has increased up to 6% from last year (Economic Commission for Africa 39). Kenya’s economy has grown due to increased consumer spending; Tanzanians economy has grown due to higher consumption and investment in natural gas. Lastly, Uganda economy is being enhanced by development in telecommunications, transport, construction as well as construction of burgeoning oil industry. In the southern region of the continent, the growth is likely to go up from 3.6% to 4.2% due to increased investments and rising mineral mining in South Africa. Economic growth in Africa will be weakest in North Africa due to political instability in the regions and fleeing of investors (Ndulu 193).