GDP Archives

Isabelle Alenus-Crosby

In the past couple of years, Africa has received an ever increasing amount of good press thanks to its unfaltering growing collective GDP.

One of the direct results of this positivism has been that the continent’s brain drain is slowly reversing, and turning into a brain gain instead.

In order for this return of the diaspora to last, stability is just as crucial as booming economies. This is why Ghana has been on top of the list for the past decade. Should Kenya have trouble-free elections in March, it is expected that many “diasporans” will return there too.

Understanding the importance of the upcoming elections, Kenya’s mobile operator, Safaricom, has partnered with Sisi Ni Amani, an NGO, and launched an SMS platform to promote the peace. This platform will allow community “peace” ambassadors to send out positive messages targeted at specific incidents at a micro level with the aim of preventing, reducing or stopping election violence.

With so much at stake, the Kenyan government has adopted a new constitution and made widespread modifications to its electoral system. A significant change is that the new laws enable diaspora voting. By giving diasporans the power to have their say, they might feel more inclined to return home and play a crucial part in the new Africa.

After all, this is history in the making, and who wouldn’t want to be a part of it?

Isabelle Alenus-Crosby

There have been various reports in the news lately that the impressive GDP statistics posted by countries across Africa may actually be underestimations, and that the continent’s outlook could be even better than previously thought.

GDP growth is correlated to a variety of data, and if this data is sparse (which is still very much the case across Africa), whole swathes of economic activity can be overlooked. Simply put, growth is measured by comparing current data to the base year. But without sufficient data, many “new” sectors, such as mobile telephony, have nothing to be compared to. And these new sectors have been growing quickly and steadily across the entire continent for almost a decade.

Until 2010, Ghana was using a 1993 base year. When it was finally revised by the statistical office, GDP estimates rose by over 60 %, translating to approximately 13bn USD of economic activity. Nigeria’s base year is still set at 1990. An upward revision is therefore imminent and likely to be even more impressive than Ghana’s. In fact, economists are predicting that the GDP for the whole of sub-Saharan Africa will rise by at least 15 % in the next couple of years! Where’s the champagne?

Tag Archives: GDP

Africa’s Brain Gain – Implications for Kenya

African GDP – growing faster than previously thought?

Part of The Wilful Group