Africa’s economic pulse has quickened, infusing the continent with a new commercial vibrancy. Real GDP rose 4.9 percent per year from 2000 through 2008, more than twice its pace in the 1980s and ’90s, Telecom, banking, and retail are flourishing. Construction is booming. Foreign investment is surging.
While Africa’s increased economic momentum is widely recognised, less known are its sources and likely staying power. This prompted the McKinsey Global Institute and McKinsey & Company’s four African offices to launch a joint research project. They sought to understand the causes of Africa’s growth acceleration, the economic outlook for the years ahead, and the emerging opportunities for businesses. While poor government policies, wars, and other events could disrupt growth in individual countries, our analysis suggest that Africa’s long-term economic prospects are quite strong. Global business cannot afford to ignore the potential. This report examines the sources behind Africa's economic growth acceleration since 2000, analyzes the prospects for future growth, and identifies some of the most compelling business opportunities ahead. It also develops a framework for understanding how growth challenges and opportunities will differ for Africa's 53 individual countries.