No longer are the nations of sub-Saharan Africa, long a symbol of war, famine and corruption, an economic basket case. Six of the world’s fastest-growing economies are there. Higher oil prices, richer consumers and sounder governments have raised so much interest in Africa’s economic promise that it’s being showcased this week at the first US-Africa Leaders Summit in Washington. In fact their middle class is growing fast enough to draw the likes of Marriott and Wal-Mart. China, Europe, Japan and the United States are vying to build roads and power plants there.
Analysts note hopefully that the current resurgence is built on foundations sturdier than the ups and downs of commodity prices. Many African nations have become more democratic, making it easier for entrepreneurs to do business, and boosted investment in education and infrastructure. A decade of solid growth has created a middle class with increased spending power — 350 million strong in 2010 by the African Development Bank’s count, up from 220m in 2000.
The improved environment has benefited even countries without bounteous natural resources. The consultancy Ernst & Young ranks Africa as the world’s second-most-attractive market after North America. Cumulative foreign investment in sub-Saharan Africa has catapulted from $33.5 billion in 2000 to $246.4bn in 2012, according to United Nations numbers crunched by the Brookings Institution.
South Africa exports BMW sedans to the United States. Ethiopia has developed a niche making shoes. And it produces the best-selling imported birdseed in the United States.
