What do you think about Africa? Do you associate it with poverty, disease, or war? The truth is that Africa has some of the world’s most powerful economies and is poised to become the second-largest economy in the world by 2030. That means we need to know why Africa is such a powerful force in the global economy.
There are many countries in the world that boast of being the economic powers to be. However, very few of them have the potential to become true superpowers soon.
Africa is the world’s second-most populous continent, after Asia, and the fastest-growing. It’s a huge place with much potential, yet many people don’t understand its true potential. We’re going to explain to you why Africa has the potential to become a major economic force shortly.
In this article, we’ll be giving you a closer look at the African economy and how its growth prospects will continue to surprise you in the coming years.
Reasons why Africa will be a major economic player in the coming years
- Africa has a young population that is quickly growing
Approximately 50 percent of Nigerians are under the age of 19. Men and women under the age of four accounted for 8.3% and 8%, respectively, of those under eighteen years in 2010. There were a considerable number of youngsters between the ages of 5 and 9 in the population.
A tiny percentage of the population was over 60 years old. Nigerians are among the world’s most populous country’s most youthful. Niger has the youngest population when compared to the rest of Africa. Nigeria came in at No. 18.
- The continent has a ton of natural resources
Africa is one of the richest continents in the world. It’s a continent with abundant natural resources, including oil, gold, diamonds, platinum, and uranium. In fact, the continent is estimated to have the world’s largest reserves of oil, gas, iron ore, and copper. These natural resources are estimated to be worth over $2 trillion.
Since about 2019, Namibia has had the greatest quantity of accessible uranium deposits in Africa, totaling 448,300 metric tons. The nation now has the continent’s greatest uranium output. There were 276,400 potential uranium reserves in Niger, Africa’s second-largest commodity producer.
- African countries are investing in education and infrastructure
Education is one of the most important factors in the economic development of a country. A country’s economy will be boosted if it has a well-educated population. The educated population will be more productive, and they will be able to utilize their skills to create a more competitive economy.
Infrastructure like roads, ports, power, and communication networks are the basic elements of any economy. They are the primary drivers of the economy, and without them, it will be hard for a country to grow.
- There is a lot of entrepreneurial activity happening on the continent
It’s no secret that the continent of Africa is home to a lot of entrepreneurs. From Nigeria to South Africa, many Africans take advantage of the booming economy to create their businesses.
In other words, Angola had the greatest percentage of early-stage entrepreneurial activity (TEA) out of all African nations examined in 2020 and 2021. It measures the percentage of adults aged 18 to 64 who are either budding businessmen or have just started a new company. According to estimates from 2021, almost 34% of the adult population in Sudan was either a new company owner or a budding entrepreneur.