Africa: The rise of a Long Forsaken continent

I. African Dream

1. A new economic target

For a long time Africa has been neglected by international investors, but the situation has changed. Indeed African countries are attracting more and more foreign investors. Africa is becoming therefore a new economic target.

We will see at first the reasons why foreign investors are now more confident in the potential of African countries?

Africa natural resources is certainly the main reason, as the continent is abound in oil, and metals but there are others factors to explain this new interest:

The Africa economy is in on the whole healthier; new economic policies have been implemented through better macro-economic management; Africa had used revenues generated by the previous boom of commodities to face the fluctuation of market prices, and most African countries succeed in controlling inflation.

The crisis have had less impact in Africa than expected, as the majority of African banks are disconnected from the international banking system, and thanks to the highly regulated banking sector, African countries have avoided systemic risks.

The aid from foreign countries has considerably contributed in Africa’s growth and development, as a matter of fact during the past years African countries have been able to invest more in health and education, and there are different forms of Aid:

First, the Debt relief: Indeed African countries are heavily indebted but less than in the past with the Aid of some countries, as well the financial aid from economic organizations (as IMF or the World Bank) and investments and the inflows of capital from foreign countries are also a huge part of the aid.

What are those countries?

Western countries are no more the only ones in Africa, China is taking the lead and at the present time the country is the most important investor in Africa, China is followed by others countries such as Malaysia, and India.

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