Africa is the world’s second largest continent and it has the second largest population after Asia. The African continent covers an area of 30.2 million square km which is equivalent to almost 20.4% of the total land area. Africa is surrounded by Mediterranean Sea, Suez Canal and the Red Sea, Indian Ocean, Atlantic Ocean and Sinai Peninsula. Africa has 54 states, including Madagascar and various island groups such as ‘Sahrawi’
The Africa economy is as diverse as the region. The southern parts are prosperous whereas the other parts struggle for stability. African economy is an extreme one, however, due to the presence of natural resources, has the potential to grow at a fast pace.
The Africa economy is as diverse as the region. The southern parts are prosperous whereas the other parts struggle for stability. African economy is an extreme one, however, due to the presence of natural resources, has the potential to grow at a fast pace.
Africa Economy: Overview
The richest countries of Africa are South Africa and Egypt. As per 2009 statistics South Africa’s GDP (purchasing power parity) was $488.6 billion. Compared to the rest of countries, the country ranked 26th in the world. Recession decreased the volume slightly. The GDP in 2008 and 2007 was $498.1 billion and $483.1 billion respectively. Egypt GDP was almost similar at $470.4 billion in 2009, $450.1 billion in 2008 and $419.9 billion in 2007. On purchasing power parity, Egypt ranked 27th in the world. If one takes out the GDP of these two regions, the total GDP is less than a trillion when compared to Italy.
Africa’s per capita GDP is extremely low and that is why it is the poorest continent. The weakest economies in Africa are Somalia and Malawi with as low as $600 and $596 per capita GDP.
The Africa economy requires an industrial impetus to bring it out of poverty as it is the store of some of the rarest metals and precious stones. Africa has almost 90% of the world’s cobalt, 50% of gold 90% of platinum, 70% of tantalite, 98% of chromium, 64% of manganese and 33% of uranium.
The region is also the store house of almost 70% of coltan which is used in most mobile phones. Congo alone has more than 30% of the world’s diamond reserve. As the reserves are yet to be used completely, the Africa economy is highly dependant on trade and therefore exposed to the global credit situations.
Africa’s per capita GDP is extremely low and that is why it is the poorest continent. The weakest economies in Africa are Somalia and Malawi with as low as $600 and $596 per capita GDP.
The Africa economy requires an industrial impetus to bring it out of poverty as it is the store of some of the rarest metals and precious stones. Africa has almost 90% of the world’s cobalt, 50% of gold 90% of platinum, 70% of tantalite, 98% of chromium, 64% of manganese and 33% of uranium.
The region is also the store house of almost 70% of coltan which is used in most mobile phones. Congo alone has more than 30% of the world’s diamond reserve. As the reserves are yet to be used completely, the Africa economy is highly dependant on trade and therefore exposed to the global credit situations.
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