Ready for the boom?

http://www.economist.com/node/17853324?zid=295&ah=0bca374e65f2354d553956ea65f756e0

Most people tend to write off the entirety of Africa when it comes to business. Its reputation of bad governance, poor standards and constant warfare make it an unappealing investment for firms and individuals. But as of late, the continent has quietly pushed its way to the top of growth charts, with some of its countries even outpacing China and India.

This growth has the potential to be extremely beneficial to historically impoverished nations such as Ethiopia and Rwanda. Unfortunately, because the systems to handle the new capital are weak and unorganized, these new found funds will not be used to great effect.

Ideally, the boosted GDPs would help develop much-needed infrastructure and social programs. This would help create a more business friendly environment on the continent, ensuring future growth and maybe even winning over skeptical investors. Instead, much of the money will likely be wasted in bureaucracy and corruption as discussed in The Economist’s blog “Baobab”. This was demonstrated using Nigeria’s oil economy, where despite large growth, citizens have seen little (if any) in the way of improvement to their quality of life.

The whole world wants Africa and its people to succeed, it’s time its leaders did too.

Spark: Baobab (external blog) and The Lion Kings?