Define Economic Factors in Africa

Despite steady economic growth since the mid-1990s, Africa remains the world's poorest continent. Increased investment and improved government have fueled economic progress, but African nations face a host of economic and social challenges that threaten their continued development.

Effects

Since the 1990s, such factors as higher foreign investment, increased access to education, better control of inflation in many countries and declining poverty rates have aided economic growth in Africa.

Benefits

Africa is rich in natural resources, but economic diversification has lessened its dependence on extraction activities, such as mining and oil drilling.

Considerations

Key obstacles to Africa's economic growth include rising food prices that threaten to exacerbate poverty, political and social conflict, the AIDS crisis and lack of public infrastructure, including roads and energy sources.

Significance

A 2008 study by the Africa Progress Panel, chaired by former United Nations Secretary-General Kofi Annan, identified infrastructure as the biggest factor restraining Africa's economic growth. The report cited a survey in which 60 percent of industries across the continent cited lack of infrastructure as the main obstacle to their expansion.

Warning

The International Monetary Fund (IMF) cautioned that civil wars in some African nations have dealt serious setbacks to the economic development efforts of some sub-Saharan African countries.

References

• Africa Progress Panel Report
• IMF--Promoting Growth in Africa

Resources

• African Economic Research Consortium