Fin24

Davies: Africa is booming

2012-08-03 12:15

Pretoria - Africa is emerging as the next economic growth powerhouse after Asia, Trade and Industry Minister Rob Davies said on Friday.

The continent's growth path had been boosted by major infrastructure development and improved financial governance, he told an Africa Growth and Opportunity Act (AGOA) conference in Pretoria.

"It's widely and increasingly recognised that Africa is the next growth frontier. The whole world is being battered by the headwinds of the global economic crisis and (also) battered by the headwinds from the slowdown in Asia," Davies said.

"If we look beyond the immediate problems that we are confronting, if we look to the medium and longer term, we can see that Africa is emerging as the major frontier after Asia."

A number of factors underpinned this growth.

These included a mineral products boom, a consumption boom, some infrastructure development, and an improvement of economic governance, he said.

The AGOA arrangement, first passed by the US Congress in 2000, allows eligible countries in sub-Saharan Africa to export their goods into the US without paying import duties.

The legislation approved on Thursday extends the AGOA arrangement to 2015 and makes provision for Africa's newest country, South Sudan.

In a brief appearance at the summit, US ambassador to South Africa Donald Gips said that AGOA had become significant both for his country's and Africa's economies.

He said African countries, combined, had exported $53bn (about R438bn) worth of merchandise into the US without paying import duty.

Last year, SA exported vehicles worth over $2bn (about R16bn) to the US, said Gips.

The US envoy congratulated Team South Africa's thriving run at the 2012 Olympic which had so far netted three gold medals.

On Thursday, the US Congress voted to renew the trade arrangement, a move hailed as a major security for millions of jobs in Africa's clothing sector.

Both the Senate and the House of Representatives approved the legislation on a voice vote and sent it to President Barack Obama, who will sign it into law.

US Secretary of State Hillary Clinton is in Africa on a seven-nation tour, and will be in South Africa on Tuesday.

 

Comments
  • nigel.vanysendyk - 2012-08-03 12:23

    pity all the money from this growth is going into the corrupt thieving caders pockets & the real people of SA will not benefit from this, like in Zimbobwe.

      victor.tamaranui - 2012-08-03 17:15

      Delusional poster here.

  • alet.dewitt - 2012-08-03 12:26

    hah yes, booming with having children they cannot afford to feed

      kobus.hattingh.5 - 2012-08-03 12:33

      Nor educate...

      msendi - 2012-08-03 12:44

      What is wrong with you guys? Maybe you need to come out of your burrows and feel the sunshine… The world is changing out there.

      J.Stephen.Whiteley - 2012-08-03 13:00

      Yes it is changing very rapidly, with China as undisputed world leader economically colonising India, leaving Russia and the West in uneasy coalition. South America will be torn between these factions, and Africa largely exploited. Davies is posturing.

      themba.nsiba - 2012-08-03 13:16

      Yho!!!! U are bitter and sour... We are moving forward and U Asijiki!!!!

  • J.Stephen.Whiteley - 2012-08-03 12:48

    There is too much civil war, AIDS, bureacratic inefficiency and corrupt election practice for Africa to emerge as an economic leader this century. The Minister must know this as well as anyone.

  • deon.rossouw.56 - 2012-08-03 12:49

    Mister Davies, I hope it is not a dream

  • jason.ugolini - 2012-08-03 12:53

    This must be about the continent and not South Africa.

  • robin.stobbs.9 - 2012-08-03 12:53

    He has to say this to keep the jam on his bread and butter (and his seat on the gravy train)!

  • james.rossouw - 2012-08-03 12:55

    USA GDP $48,000 pp pa. SA used to be $14,000 now $10,000 pp pa. Zim $700 pp pa. {mostly aid money} Source CIA Factbook. Africa is going no where.Exclude minerals and not much is left. $2 B cars exported.... designed owned by Germans.

  • vmeiring1 - 2012-08-03 12:58

    Surely not South Africa, cause we're going backwards with the speed of light. Well governed countries like Botswana, Zambia and Uganda I believe is thrieving.

  • denton.estment - 2012-08-03 13:21

    Africas booming. The next article on news 24 patients left naked in hospital. Well done Rob Davies!!!!

  • dalai.rama.9 - 2012-08-03 13:53

    Yes, pigs can fly..but are the masses "feeling" the effects of your so-called growth.

  • bob.small.7547 - 2012-08-03 14:20

    The only booming I know of is from guns!

  • anelda.bernardo - 2012-08-03 15:22

    Tell me a story!!!!!!!!!!!!!! ek sal dit ook graag in die ekonomie wil sien.

  • piet.strydom - 2012-08-03 17:06

    Come my fellow wit ous, don't be blinded by either the ANC, the past or your prejudices: http://hbr.org/web/infographics/2011/05/mapping-africas-growth

  • victor.tamaranui - 2012-08-03 17:14

    100% correct Davies, International indices and facts don't lie. Check out the Detractors sour this statement cos' they know NO better and their bitterness rises to the top.

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