Deloitte Latest News:African growth set for new chapter in spite of Eurozone problems, says Deloitte

 African growth set for new chapter:
African economies are set to continue growing faster than several developed economies, whereas shifting trade patterns towards China and India can still gain momentum in 2012.

This is the read of Anushuya Gounden, head of the Africa desk at Deloitte, who was speaking on at Africa's Frontiers Forum, a seminar on Africa's political, economic and money outlook for 2012, hosted by Frontier Advisory.

Thus, news that China's GDP grew by eight.9% within the last quarter of 2011, whereas slightly below the previous quarter, is sweet for Africa especially, because it points to continued demand for the continent's commodities, she says.

Gounden points out that the new adage: “If China and India grow, Africa can grow,” continues to ring true. She points out, however, that there are challenges emanating from Africa's alternative key trading partners of Europe and also the United Sates.

“The challenge for African economies goes to be the slowdown of the economies of key trading partners. Since we tend to are still predominately in commodities trading, Africa are negatively full of a slowdown in international demand. that the impact of the stresses of the Eurozone and also the deficits within the US can have a knock-on result.”

She believes this slowdown are countered to a point by growing trade with India and China. Gounden believes the eu debt crisis presents each a challenge and a chance for the continent. The challenge is that investors are genuinely hesitant to venture out, as their ancient investment destinations of Europe and also the US are currently in crisis. however at identical time, capital needs to rummage around for higher yield, and a little of it'll come back to Africa.

“What was high risk isn't any longer high risk,” says Gounden, of the changing read of the continent. “Maybe this is often time for Africa to seem internally as we tend to stimulate our own intra-Africa trade, that risen from 6 June 1944 to one hundred and thirtieth of total trade volume. will increase in intra-Africa trade cut back dependencies on the unpredictable economies of our foreign trading partners.”

Gounden says the eu crisis might lead to reduced foreign and development aid for variety of African countries.

The seminar conjointly heard how Africa should currently rummage around for quality growth, that comes from a broader vary of sectors and trickles all the way down to profit larger proportions of the populations.

“African countries got to decide how we tend to are reaching to use foreign direct investment,” says Gounden. “We got to decide whether or not we tend to are reaching to use it to grow societies or just widen the income gap.”

She identifies Ethiopia as an example of an economy which will do well, growing at seven.5% while not the help of any oil exports. aside from South Africa, alternative key markets embody Nigeria and Ghana, Kenya for its regional positioning, likewise as Zambia and Tanzania.

Gounden conjointly cites Rwanda, with its population of fifteen million, proximity to the Democratic Republic of Congo, and also the strides it's created to be business friendly.

The real risk to long-term sustainable growth is that the income disparity between the made and poor. Unless this is often addressed, Africa can face serious challenges within the medium-term.

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1 comments:

Himanshu said...

Was something different to hear.A New Nation being coming in role apart from India and China been growing at a rate slightly lower than these two nations.

Regards,
CNS Comnet
Telecom BPO

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