Time to Inspire review: #Africa for optimists This was the year that Nigeria finally lived up to its potential and became the largest economy in Africa – and by quite some distance too. As of April this year, Nigeria’s GDP was worth $510bn, an astonishing 89% increase on the year before. In contrast, South Africa, last year’s number one, trails far behind at just $370bn. It’s not that the Nigerian economy fundamentally changed overnight. It’s just that, for the first time in two decades, the country’s statisticians calculated its size correctly (or, at least, more correctly – the trouble with African statistics is that even the best of them are unreliable). By failing to rebase the GDP calculation since 1990 – ie failing to update the basket of goods and costs from which it is extrapolated – the country had worked with a grossly distorted picture of its economy for far too long. That’s not to say the new figure, larger though it may be, is proof that the economy is healthy. It is far too reliant on oil, and taking a pummelling from the drop in global oil prices. Still, it’s progress. Now the Nigerian government and investors know what they are dealing with. The new figure does cement Nigeria’s reputation as the most attractive investment destination on the continent, and also gives it a huge diplomatic advantage: as Africa’s largest economy, Nigeria can make a compelling argument for continental leadership positions such as membership of BRICS (five major emerging national economies) and a permanent seat on the UN Security Council, should UN reform ever happen. Read more: So long, suckers! Nigeria overtakes South Africa in the race for economic supremacy and Hello Nollywood: How Nigeria became Africa’s largest economy. Over the course of a couple of days in late October an awe-inspiring display of people power in Burkina Faso forced President Blaise Compaoré to scuttle into exile, his tail firmly between his legs. It was a humiliating exit for the man who had ruled Burkina Faso since 1987, and was angling for even more time in the presidential palace. It was this manoeuvering – Compaoré wanted to change the constitution to allow himself to run for yet another term – that proved to be the final straw. Spontaneous protests erupted on the streets of Ouagadougou, and, crucially, the army rallied on the people’s side. In a continent where dictators and presidents-for-life are all too common, with devastating consequences for the countries they rule, this was a magnificent example that power is not immutable and people can be in control of their own destinies. The big question, though, is what happens next. It’s a question that Egypt and Libya – who went through a similar political upheaval – are largely failing to answer (Tunisia might be a better model). At the moment, there’s an interim government in place that is largely dominated by military men. They are promising a democratic transition. It remains to be seen, however, if they can be trusted. ift.tt/1zqNw6P
Posted on: Wed, 17 Dec 2014 08:34:54 +0000
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