How New Is the “New Africa”?

The media and commentators are abuzz with narratives about how Africa has finally turned a corner from years of lackluster economic performance. They seem to be fascinated by a “new Africa” that has been outperforming much of the rest of the world and threatening the economic hegemony of emerging markets. So impressive has the performance of the region been that financial market analysts have coined a new term for African countries: “frontier markets.” Twenty years ago, the focus of financial institutions and investors was on “emerging markets,” and Africa was discussed only in reference to military coups d’etat, humanitarian aid, wars, violence, and disease (especially HIV/AIDS). Africa has now become a focus of attention not only as a “frontier market,” but also as a region with new business opportunities, a bastion of natural resources, and a “hopeful continent.” According to Penny Pritzker, US commerce secretary, “The time to do business in Africa is no longer five years away. The time to do business is now.”1 Sentiments apart, are we really at a defining moment of African development, or is this yet another false start reminiscent of the 1960s? Is Africa about to take China’s coveted status as the economic powerhouse of the world? These are intriguing questions that cannot be answered without a systematic review of Africa’s recent economic performance.