Africa: Challenges and Opportunities

Today, reflections about Africa elicit both a smirk and a smile. The reasons are not difficult to ascertain. There are both happy and sad stories to tell; they tell of the grim reality that bestrides the continent, and they also tell of the opportunities that are favorable for turning things around. For many people, however, the story of Africa is one of many missed opportunities and misstarts. The continent, according to Afro-pessimists, is jinxed and will forever remain "the continent of the future."

Africa has for a long time been caught in the vicissitudes of attempted physical, human, and fiscal development strategies. Many reasons for this have been given, but one is highlighted by the oft-expressed idea that the consequences of Africa's actions and inactions toward engaging the rest of the world and enhancing the continent's collective fortunes have to a large extent reflected or are a product of diverse economic and political models that have brought a mixed bag of blessings to Africa and the African people.

While there are a variety of other views (including, for instance, the impact of colonialism and the neocolonial manipulations of the global postcolonial era) on what constitutes the underlying and/or fundamental challenges in Africa, I do not seek to continue with such arguments.

Even the most undiscerning observer will agree that the past ten or more years have been compellingly different for Africa and Africans. The difference has been leadership. We have undertaken far-reaching reforms while seeking to deconstruct the old order and to establish a new order that will enable Africa to move in tandem with the rest of the world. At the beginning of this decade, African leaders approached the need for change and reform. They established new institutions and programs to serve Africa in the twenty-first century—the African Union (AU), the New Partnership for Africa's Development (NEPAD), and the African Peer Review Mechanism.

Let me illustrate my position by drawing on a number of obvious positive signs. Recent statistics and reports have emerged that indicate more African states are doing comparatively well. The World Bank stated in its new Africa Now report that "growth has been sustained in Africa over the past decade. Some seventeen countries in Africa, home to 36 percent of the continent's population, have been growing at an average rate of 5.5 percent per annum in the last ten years."

Another seven countries, with 29 percent of Africa's population, enjoyed an income from natural resource revenues, with a growth rate averaging 7.4 percent for the decade. Thus, 65 percent of Africa's population lives in countries that would be categorized as "high growth" by any international measure. The continentwide growth rate is estimated at 5.3 percent in 2006, with evidence that this growth will be sustained in 2007.¹

Most heavily indebted poor countries (HIPC) have attracted significant amounts of debt relief. What is more, even non-HIPC countries like Nigeria and Algeria have succeeded in negotiating their debt profiles into significantly lower profiles. To this must be added the discernible increase in foreign direct investment as well as the significant volume of foreign remittances to Africa. In Nigeria, it is estimated that foreign remittances from Nigerians in the diaspora alone amounted to well over US$9 billion in 2006. The prices of some African commodities have been enjoying a considerable and consistent upswing, implying more income for Africans. The economy of the continent has also been democratized, and space has been expanded to allow private-sector-driven initiatives to take better advantage of the massive opportunity abundant in the continent.

This is an opportunity that African Americans cannot and should not lose sight of and should take hold of. With an economy of more than US$800 billion, how can African Americans impact the African economy?

Africa is today a friendly and profitable investment destination, with enormous potential for profitable ventures in diverse areas. The continent has emerged as one of the regions of the world with the highest investment returns. The Nigerian stock exchange alone grew from...