Africa: The next powerhouse?

After two decades of prolonged crisis, the African continent has entered the 21st century at full speed. Its economic growth has reached a yearly average of more than 5% over the past decade, even as the fastest-growing parts of the global economy have shown signs of weakening. Fuelled by urbanisation, the consumption of new middle classes and a natural resource boom, this growth is largely endogenous – and thus likely to last, despite sporadic crises. If sustained, it will turn Africa into a vital growth pole.

Africa's population growth will turn it into the demographic giant of the 21st century: the continent will see its population double over the next four decades. By the end of the century, it may host 4 billion people, more than a third of humanity.

The twin processes of economic and demographic growth generate considerable financial needs. It is estimated that some $50bn (£30bn) a year would be needed to cover Africa's infrastructure gap, which costs its economy up to two growth points every year. Fuelling its expanding yet capital-poor private sector would call for several additional billion dollars.

Public development banks must step up to the tempo of economic transformation in Africa. They can serve as both compasses and catalysts for those willing to invest in the continent's development.

BBC's Michael Buerk in 1984 framed Ethiopia for a generation as a place of famine and in need of salvation. Almost 30 years later the country is hailed by pundits as an "African lion" after a decade of stellar economic growth.

Now further evidence of its turnaround has arrived with research showing that Ethiopia is creating millionaires at a faster rate than any other country on the continent.

The number of dollar millionaires in the east African nation rose from 1,300 in 2007 to 2,700 by September this year, according to New World Wealth, a consultancy based in the UK and South Africa. That figure puts the country well ahead of Angola, up by 68%, and Tanzania, which had a 51% increase. Zambia and Ghana completed the top five.

The study finds that the rise in millionaires has been closely tied to GDP growth, in which Ethiopia has also fared best over the past six years achieving 93%, followed by Egypt (81%) and Angola (61%).