On the Path from Instability to Recovery in Sub-Saharan Africa

Net commodity exporting SSA nations, recognizing the finite nature of their resources, have begun to diversify into others sectors and are seeking out ways to secure their nation’s future.

The Ghanaian government, for example, has apportioned 5-20% of oil revenues to be allocated into a stabilization fund. For nations that aren’t as fortunate to be blessed with an abundance of natural resources, urbanization is rapidly occurring, giving rise to greater productivity, economies of scale, and international competitiveness.

Sub-Saharan Africa still has a long road ahead in order to affirm its place as a global power that is here to stay. With over 500 million people of working age, and the expectation that this number will swell to 1.1 billion by 2040, Africa’s sheer labour force will play a key role in cementing its place in the global economy. With literacy rates among the population of SSA nations below 62% on average, it is evident that reforms need to be made in regards to education in order to capture the full potential of this vast workforce.

Photography by Abad Mahava

Inasmuch as international markets, the success of SSA ultimately lies on the shoulders of the leaders and their decisions in the crucial coming years. Fostering an environment for private enterprise to thrive, implementing education policies, and working to minimize poverty and income inequality – among other things – is a good place to start.

If this change from the top doesn’t occur in some countries and continues in others, this disproportionate growth could very well end up being comparable to the short lived African oil boom of the 1970’s.

Aziel Goh is currently studying a Bachelor of Commerce at The University of Melbourne. He holds a keen interest in learning and writing about economics, business, and finance events that shape the global society in which we live today.