“In many ways what has done over the last 25 years has echoes of Western countries before that.” Still, he scoffs at concern that China is the only dominant power in Africa. McDermott, however, adds that China is part of Africa’s growth problem. The losers will be the ones who simply don’t get this - that you can’t continue to export raw materials.” “When we talk about industrialization, driving growth in Africa, we need to pick those countries that have their acts together about moving up the value chain. “And they are exporting right here to the United States.” Zemedeneh says other countries should follow this model to experience similar growth. “If you come to Ethiopia today you see these massive industrial parks, built by Chinese but the investors are Americans and Europeans,” says Zemedeneh. Many of the countries in Africa that have seen the fastest growth have also been the largest recipients of Chinese investment, including Zemedeneh’s native Ethiopia. “But today, the average Asian person will earn about 80 percent of the global average income, and the average African just 40 percent.” “In 1990, the average African and the average Asian each earned about the same,” he says. We have this unique opportunity for us as Africans to move up the value chain and create the kind of wealth that we so rapidly created in Asia.”Īs McDermott highlights, Africa has been outpaced by the rest of the developing world. Much of the world today needs what Africa produces, but it’s being exported in raw material form. “It’s a unique time for Africa to monetize its natural resources, by essentially adding value. “The opportunities in Africa are multifold,” Zemedeneh outlines. John McDermott, The Economist’s Africa correspondent based in Johannesburg, recently wrote The Economist’s cover story titled “The New Scramble for Africa.” Zemedeneh Negatu, Global Chairman of the Fairfax Africa Fund, and former chairman of Ernst and Young’s Africa practice, advises clients across the continent in sectors ranging from financial services to agroindustry. Joining us this week are two guests who bring a wealth of political and private sector expertise in this complicated region. Nonetheless, the past years have seen much of Africa enjoy unprecedented economic progress.Īfrica’s success also indicates how China is growing its global influence and the extent to which the United States has lost out on economic and political opportunities on the continent. Some parts of Africa are moving much faster than others. Endemic corruption and slow progress up the global value chain present serious hurdles to growth. Flooded by foreign investment and with greater economic integration among its 54 nations than ever before, this diverse continent is going through a massive awakening. The world is woke to the latest African awakening – but how can the continent lock in recent gains and overcome barriers to integration and economic equality?Īfrica is transforming fast.