Telegraph Africa

Africa is growing and a recent wave of economic and political liberalisations has underpinned renewed investor interest on the continent. Well-defined strategy and vision, then, will mark the difference between transforming the momentum into real gains as opposed to cosmetic league-table growth. As the economists, politicians and theorists flog their development wares based on previously successful models, Africa comes to the bazaar wondering which one to pick.
Industrialise, industrialise, industrialise

Heavy public investment in infrastructure and industry is currently a key priority for most governments on the continent. African sovereigns are briskly unlocking capital to suit these ends, for example through the sale of eurobonds, with much of the proceeds tied to infrastructure projects.

This industrialisation drive becomes even more obvious when scrutinising countries’ budget allocations. Nigeria, for example, has this year allocated more funds to power, works and housing than the total combined for health, education and the interior. Kenya’s allocation to energy, infrastructure and ICT last year dwarfed health, national security and environment protection.

This push is inspired by Europe and North America’s leap to greater prosperity through the first wave of industrialisation; but perhaps more significantly, it is also shaped by the recent examples of Asian countries rapidly lifting millions out of poverty through light manufacturing and heavy industrialisation. Indeed, the parallels between Africa and these Asian countries in the 1960s make for sobering reading. At the time of its independence in 1957 Ghana had almost the same GDP per capita as South Korea, at around $490, but by 1990 South Korea’s per capita income was 10 times greater than Ghana’s. Given the base similarities many African countries are now looking to emulate their Asian counterparts.
Lessons from South Korea

One of the continent’s most explicit endorsements of the South Korean model was the African Development Bank’s (AfDB) recent annual meeting held in Busan, South Korea’s economic capital. The intention was clear: to learn from what is now the world’s 11th largest economy.more-> AB