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Cheetah Index to Premiere Soon!
As part of our mission to fill the void left by conventional media in covering African issues, African Path will take an active role in supporting and empowering the continent’s young and progressive decision makers. Today, African Path announces the launch of a dedicated business section under the African Path network which will be branded as the Cheetah Index. Currently the site will run on a Beta version.
VII G. Strengthen Education: PROMOTING STOCK MARKET DEVELOPMENT IN AFRICA
Increasing public knowledge about the functioning of the stock market could promote the development of the stock market in Africa.
V. STOCK MARKETS AND ECONOMIC GROWTH: THE MACRO CHANNEL
The results from the previous section suggest that large corporations in Africa have made considerable use of the stock market to finance their growth.
V. A. Markets for Exports: AID VS. COMMERCE: FACTORS INFLUENCING THE GROWING TIES
A silent feature of the recent developments in China’s economic engagement with Africa is that trade and other commercial activities have grown faster than aid flows.
African Reforms are essential to Boost Private-sector Development and Improve Governance
The capacity of smoothing shocks highly depends on the ability of African policy makers to diversify their economies. Boosting the private sector and improving economic and political governance are crucial.
Solid Growth in Sight, but There Are Risks
Solid growth is expected to continue in 2005 and 2006 – although at a slightly lower rate of 4.7 per cent in 2005 as the effect of new Central African oil fields ends. West Africa is expected to recover in 2005 and 2006, while the trend of positive growth in Eastern Africa and Southern Africa will continue over the next two years, reflecting rising oil production in Angola and improved performance in South Africa. This positive outlook is however highly dependent on the continuous expansion of the global economy, an overall easing of regional conflicts, and favourable weather conditions.
African Economic Performance in 2004: A Promise of Things to Come?
Against a backdrop of sustained global growth and high commodity prices, Africa has experienced its best economic performance in many years. While recent economic performance is not merely driven by favourable external factors, African economies still lack proper “shock-absorbers” to withstand internal (e.g. drought and floods, political instability, HIV-Aids, etc.) and external (e.g. volatility of commodity prices and exchange rates) shocks alike. They remain strongly vulnerable. In this context, creating the conditions for the development of indigenous drivers of economic activity (starting with a thriving local private sector) is a top priority.
6.1 Macroeconomic policies for diversification: Economic Report on Africa 2007
the need for pragmatism over orthodoxy
5.3 Conclusion: Economic Report on Africa 2007
This chapter has shown that there are clear and measurable determinants of diversification in Africa at the continental, subregional and country level. Despite the inadequacy of African data, it may be said that, at least at the continental level, the diversification process is highly influenced by investment, per capita income, level of openness, macroeconomic policy stances, governance, and conflict.
5.2 Africa’s diversification regimes revisited: Economic Report on Africa 2007
A further link to productivity
5.2 Diversification-deepening policies raise growth and TFP: Economic Report on Africa 2007
What then do these results imply? They mean that pursuing diversification-deepening policies could help accelerate growth. Important policy implications of this link arise with respect to the determinants of diversification that were discussed earlier in the chapter.
5.1 Faster economic growth could assist in diversification efforts: Economic Report on Africa 2007
The results for Africa, shown in table A5.1, suggest further that as income per capita increases, there is a tendency for African economies to experience improvement in their diversification processes. This is a very significant result and it is in line with other empirical evidence, (see Imbs and Wacziarg 2003), which shows that poor countries tend to diversify at first as their incomes rise, before they later begin to become more specialized. African countries also fit into this theory of the U-shaped stages of diversification.
5.1 Insufficient investments in Africa have hindered the deepening of diversification: Economic Report on Africa 2007
Using the results for Africa shown in table A5.1, it is possible to compute what one could call a turning point in the relationship between investment and diversification.
4.3 Conclusion: Economic Report on Africa 2007
The following conclusions summarize the results of Africa’s export diversification efforts and results:
4.1 Case studies on export diversification for selected African countries: Economic Report on Africa 2007
So far, diversification trends in relation to African economies indicate that different countries have achieved varying results. The overall conclusion is that, in general, African economies have failed to make gains beyond their initial positions in the early 1980s. It has also been pointed out that they reacted defensively to the crises that beset them in the 1980s. Their macroeconomic stabilization policies did not create an environment conducive for dynamic response, as a good number of countries in Asia and Latin America were able to do. Their defensive response as seen in the oil factor, perpetuated the status quo and worsened it in some instances. Earlier gains in such countries as Gabon, Nigeria and Sudan were eroded.
4.1 Diversification trends at the subregional level: Economic Report on Africa 2007
The general picture of the continental performance that was shown in figure 4.1 masks the gains and losses made at the subregional and country levels. Figure 4.3 gives the situation at the subregional level and it compares five subregions defined around some of the RECs. In 1980, the most diversified subregions were COMESA and ECOWAS. The least diversified was CEMAC with SADC and North Africa in between. By 2002, the diversification gains at the subregional level had changed, with the most significant gains made by SADC, which is now the most diversified subregion on the continent. It is followed by COMESA and North Africa. CEMAC has remained the least diversified subregion.
4.1 Diversification trends at the regional level: Economic Report on Africa 2007
Figure 4.1 shows three different measures of diversification for African economies as a whole (see Ben Hammouda et al. (2006a) for detailed definition of the indices of diversification). Three concise comments on the general trend of Africa’s diversification experience can be made.
4.0 Diversification trends in Africa: Economic Report on Africa 2007
The diversification of African economies is one way through which the recent economic growth achievements could be sustained. Africa’s economic transformation can be achieved through both horizontal and vertical diversification. In addition, such diversification will help to build competitive economies that can productively be integrated into the global economy. Diversification is therefore a pre-condition if Africa is to register accelerated development. The scaling-up of current real growth to desired levels and in a broad manner can also be sustained if there is deepening in the diversification of African economies.
References
Local Entrepreneurship in Southeast Asia and Subsaharan Africa: Networks and Linkages to the Global Economy, By: Deborah Bräutigam, School of International Service, American University, Washington, DC
3.3 Conclusion: Economic Report on Africa 2007
It is expected that the recent renewed global attention to the problems of developing countries will contribute to redressing the trends towards marginalization of these countries.
3.2 Financing Development III: Economic Report on Africa 2007
Emerging issues on aid and debt
3.2 Financing Development III: Economic Report on Africa 2007
Emerging issues on aid and debt
2.1 Growth performance VI: Economic Report on Africa 2007
External balances also driven by developments in the resource sector
2.1 Growth performance I: Economic Report on Africa 2007
This section examines recent economic performance at the continental and subregional levels. It discusses disparities in growth performance and the factors behind the observed disparities across countries and subregions. The analysis pays particular attention to structural factors such as endowment in natural resources, the role of policies and institutions as well as non-policy drivers of growth, including exogenous factors such as natural calamities, geography, and civil conflicts. The discussion highlights key constraints to growth in Africa and strategies to address these constraints.
1.0 Recent Economic Trends and Prospects for 2007: Economic Report on Africa 2007
Developments in the World Economy and Implications for Africa
Overview II: Economic Report on Africa 2007
Growth in Africa has increased but it is still not enough
Wanted: jobs for Africa’s youth - Diversification
The Youth Employment Network, an alliance of countries initiated by UN Secretary-General Kofi Annan in collaboration with the heads of the ILO and World Bank, recommends that governments diversify their economies and promote sectors that use a lot of workers. Many African economies still rely on the production of one or two primary commodities. They could diversify into processing these commodities or producing light manufactures, as Mauritius has successfully done.

Other African economies Related Articles

Wanted: jobs for Africa’s youth - Diversification
The Youth Employment Network, an alliance of countries initiated by UN Secretary-General Kofi Annan in collaboration with the heads of the ILO and World Bank, recommends that governments diversify their economies and promote sectors that use a lot of workers. Many African economies still rely on the production of one or two primary commodities. They could diversify into processing these commodities or producing light manufactures, as Mauritius has successfully done.
4.0 Diversification trends in Africa: Economic Report on Africa 2007
The diversification of African economies is one way through which the recent economic growth achievements could be sustained. Africa’s economic transformation can be achieved through both horizontal and vertical diversification. In addition, such diversification will help to build competitive economies that can productively be integrated into the global economy. Diversification is therefore a pre-condition if Africa is to register accelerated development. The scaling-up of current real growth to desired levels and in a broad manner can also be sustained if there is deepening in the diversification of African economies.
4.1 Diversification trends at the regional level: Economic Report on Africa 2007
Figure 4.1 shows three different measures of diversification for African economies as a whole (see Ben Hammouda et al. (2006a) for detailed definition of the indices of diversification). Three concise comments on the general trend of Africa’s diversification experience can be made.
4.1 Case studies on export diversification for selected African countries: Economic Report on Africa 2007
So far, diversification trends in relation to African economies indicate that different countries have achieved varying results. The overall conclusion is that, in general, African economies have failed to make gains beyond their initial positions in the early 1980s. It has also been pointed out that they reacted defensively to the crises that beset them in the 1980s. Their macroeconomic stabilization policies did not create an environment conducive for dynamic response, as a good number of countries in Asia and Latin America were able to do. Their defensive response as seen in the oil factor, perpetuated the status quo and worsened it in some instances. Earlier gains in such countries as Gabon, Nigeria and Sudan were eroded.
5.1 Faster economic growth could assist in diversification efforts: Economic Report on Africa 2007
The results for Africa, shown in table A5.1, suggest further that as income per capita increases, there is a tendency for African economies to experience improvement in their diversification processes. This is a very significant result and it is in line with other empirical evidence, (see Imbs and Wacziarg 2003), which shows that poor countries tend to diversify at first as their incomes rise, before they later begin to become more specialized. African countries also fit into this theory of the U-shaped stages of diversification.
5.1 The development model should determine the optimal trade policy: Economic Report on Africa 2007
The two-stage diversification process from economic history has been registered both in open and closed economies. The difference between the two is that the turning point after reasonable and sustainable development has been achieved occurs at a much earlier point for open economies compared to the case for closed economies.
African Reforms are essential to Boost Private-sector Development and Improve Governance
The capacity of smoothing shocks highly depends on the ability of African policy makers to diversify their economies. Boosting the private sector and improving economic and political governance are crucial.
Cheetah Index to Premiere Soon!
As part of our mission to fill the void left by conventional media in covering African issues, African Path will take an active role in supporting and empowering the continent’s young and progressive decision makers. Today, African Path announces the launch of a dedicated business section under the African Path network which will be branded as the Cheetah Index. Currently the site will run on a Beta version.
Quote: Taking African products where there’s no bias
While more established economies begin to focus on the revenue potential of emerging economies, many of those emerging economies are also seeing the benefits of selling to each other.
Public Sector Procurement Practice and the Principles of External Economies, Clustering and the Global Value Chain
Can the public sector effectively apply the principles of External Economies to its procurement practice? “External economies of scale (ES) occur outside of a firm, within an industry. Thus, when an industry’s scope of operations expands due to, for example, the creation of a better transportation network, resulting in a subsequent decrease in costs for a company working within that industry, external economies of scale are said to have been achieved. With external ES, all firms within the industry will benefit.” (What Are Economies of Scale? By Reem Heakal, January 2003)

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