Abstract:
Cyclical factors and the commodities boom have played a big part in Africa’s
impressive growth record since 2000. Yet the ‘Africa rising’ narrative is increasingly
supported by significant macroeconomic reforms and structural changes that bode well
for sustained levels of growth and development. A critical determinant of whether this
positive growth trend continues will be the extent of Africa’s economic integration
with the rest of the world and within the continent. The TCIP framework – tracking the
flow of trade, capital, information and people – developed by Pankaj Ghemawat
demonstrates how economic openness and integration facilitate economic growth and
socio-economic advancement. However, poor levels of integration, a lack of
understanding and the data deficit that measure these flows have left Africa out of
these empirical studies. In this article, data from traditional sources together with the
TCIP framework provide insights into the state, nature and contribution of these flows
in Africa. In addition, a look at proprietary data from Visa further elucidates the
changes and opportunities presented by Africa’s economic integration.
