When you think of the fastest growing economies in the world you might think of a country like China, because they have been growing at a high rate of roughly 6 to 7% per year for the past several years, and have become an economic superpower. But…China is actually not even in the top 20 fastest growing economies on the planet. In fact, when you take a look at the 50 fastest growing economies on the planet, roughly 38% of them come from one single continent. A continent that is quickly becoming the economic battleground of the world.
This is Africa.
In 2002, the GDP per capita of Sub-Saharan Africa was a paltry $588. Yet by 2019, the GDP per capita had grown to well over $1600. That is a 272% increase in the wealth of the Continent in less than 2 decades. This massive increase in wealth has brought many of Africa’s countries like Nigeria, Botswana, and Ghana out of relative poverty, and into the middle-income class of the world.
But that brings up the question, what has brought Africa’s economy out of poverty? Or maybe more importantly, who has brought Africa’s economy out of poverty.
You see, Africa has been the most underdeveloped continent over the last several centuries as It has historically had a poor infrastructure that has drastically limited its economic development.
For example, the united states has a surface area of 9.8 million kilometres squared, and
the continent of Africa has a surface area of roughly 30.4 million km squared.
Yet the United States has over 108 thousand kilometres of highways constructed within the country, and africa has only 60 000 kilometres of highways constructed for the entire continent.
In fact, to this day there are still no paved highways that travel through anywhere in Central Africa.
And the transportation network has been just one of a litany of infrastructure flaws in Africa. The continent has also historically had problems with electricity availability, internet access, and water shortages as well.
But…things started to change just a few decades ago.
As China began transforming itself from a poor farming nation in the 1970’s, to an economic powerhouse, it slowly started gaining large amounts of influence in Africa. IT did this by increasing foreign aid to african countries, increasing trade with many african countries, and by investing billions of dollars per year in African infrastructure projects.
For example, Africa’s main railways in Kenya, Ethiopia, Angola, Djibouti, and Nigeria are all funded by China.
China has also funded The African Union Headquarters, The West African Block Headquarters, Several major power plants, oil refineries, hydropower plants, Zimbabwe’s new parliment building…and… a private chinese developer is funding the development of an entire city in egypt.
But that brings up the question. Why is China investing so much money in Africa? Well there are a few key reasons. One of which is that China has now become Africa’s largest trading partner, trading nearly $128 billion dollars worth of goods every year, meanwhile the United States only trades roughly $48 billion dollars worth of goods with africa every year. What this means is that Africa has resources that China wants. For example, about one third of all the oil used in China comes from Africa.
Another reason why China has pumped so much money into Africa is because return on African investments has been fairly good. For example, from 2006 to 2011, the average return on African investments for China was a hefty 11% per year. In fact, roughly 15% of all african debt is owned by the Chinese government, and two thirds of all loans given to african nations in the past 3 years have come from China.
China has also begun shifting a lot of its labor industries to other countries that have cheaper labor. And the continent with the cheapest labor in the world right now is Africa. That is why many Chinese manufacturers have shifted their base to countries in Africa such as Ethiopia. It is estimated that roughly 12 percent of Africa’s manufacturing production today is being run by Chinese companies.
End of transcript too long for youtube.
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What do you all think about Africa's economy and the investments going on there? Let me know in the comments down below! Also, holy smokes, 240k of you are subscribed, that's insane! Thank you all very much, and I love you all
Fastest growing country would most likely be a country that's at the bottom.
The difference is in the volume, 6 to 7% of 20 trillions is more than 20% of 1 billion. 😂😂😂
So good ,If The African States Developed Like this As you Said ,That the Good news For African Market Growth.Hope For Good
Africa is opportunity unlimited. Rich in resources, population, cooperative people and a hunger for modernization and a better life. Tremendous opportunity resides with those who invest and play the long game.
come on, Huawei has had enough business with countries around the world. no sales for western countries, no big deal.
Well … the african goverments are constantly failing paying back all the chinese credits.
You see when USA fucked up Libya we decided we gonna side on china
"How Europe underdeveloped Africa" and How China developed Africa.
Stop using the racist descriptive term Sub-Saharan Africa to segregate the black majority countries from the white Arab north. In North America, you use North America. In South America, you describe it as South America. In Europe, you use Eastern and Western Europe, In Asia, you use the term, East Asia, South Asia, West Asia. But, when it comes to Africa, you use Sub-Saharan even though Africa is sub divided into West, East, South and North Africa.
After watching this video I think James Watson is right!
Transmission third world war,third round(RATM)
Let the flag of leader Kim jong rise
Let Japan win
the amount of government debt each country has tells you if they are a house of cards…
for example.. USA is in tens of TRILLIONS of national debt!!!!! we be frigged if gvt BORROWING it is not stopped
Former colonizators are just seeking for new country that will cheaply produce goods for them, and thus leadind to more big pollutors of the only planet we can live on!
Africans we will fights because is not alone our friends anknow will show!!!!
africans took africa out of poverty and will keep it going
We are witnessing a new time– Where man does not search for achievements, but rather milestones of impossibility. It is no longer great land we seek, but great frontiers to revolutionize that land. Africa will be, in my opinion, one of the few countries that will act as a hot bed for the wonders of the new world, Here I truly think we will discover a new frontier, as we did so many times before, as we did with our own very nation.
The US is leaving Eurasia and Consolidating in Japan, Oceania, and Western Europe and the New World. African Borders make no sense geographically and ethnically. Africans Identify
With there tribe and All nations in Africa exist because a European Diplomat at the end of ww2 Said so. The Reason why Africa isn't in All Out war is because the American World System (The United Nations) Will destroy anyone who does if a Kenyan Napoleon tried to conquer East Africa He would be promptly destroyed by the Americans. Once America Stops caring Africa will have Massive wars
and States will cannibalize each other. Nigeria Can survive if it keeps its Oil Pumping but
it will be crowded with refugees.
You can't look at Lagos and see it will have 30 Million People by 2040 in a city without Infrastructure.
Crowded African slums will breed Religious, and political fanaticism and New Diseases.
About the economy in Africa. Think Africa should take it slow. Look into past history records of other countries. So you don't make the same mistakes they did. Do not allow trickery in the country. Take it slow. And do not forget to take care of the wildlife and the land. And most important do NOT forget God! and your morals. Do not allow money to buy you. Love you, Africa. From USA
Africa is now to 400 companies with a wealth above $1 billion.
YOU WILL REGRET LETTING CHINA INTO AFRICA! ALL countries for that matter! AFRICA IS VERY CORRUPT…or at least its leaders are! THEY WILL ENSLAVE YOU…AGAIN! THE WORLD IS AFTER AFRICA’S RESOURCES…NOT THE WELFARE OF THE PEOPLE!
Africa is the Now and future . China is not a war monger like you know who………….
Black people around the world we have to unite and make sure we own our future. We can learn so much from the past. DO NOT TRUST NON-AFRICANS
Until we have our own TECHNOLOGY we will still be enslaved…
1st …physical enslavement (1100-1850)
2nd…Economic enslavement(1900-Now)
3rd …Technological enslavement(now..->
{13:01} – The Origin Story of Wakanda.
Super interesting bruh
Taiwan 🇹🇼 is NOT the part of China.
It makes sense for the west to invest.
seriously , africa has had it terrible for as long as white history has been, i recon let them grow as a green and natural economy, they will be fine without us, give them time
Better let huwaei get one concentrate on Europe and medeterinian more quality
Countries entering africa usually want to use it as history shows
I feel bad for the lions because they habitat might be took over
I just want to live in a peaceful world