How fast is Africa really growing?

Such data points aside, little is known about the true magnitude of Africa’s growth surge. Data quality in most Sub-Saharan African economies is weak. In many instances, the official data is too out-of-date to tell us much that is useful. The lack of data complicates decision-making for both the private sector and governments. It reduces certainty, adds to the cost of doing business and can delay the formulation of much-needed policy. 

While Africa has seen surging foreign direct investment and private portfolio inflows in recent years, investors – especially those new to the region – are often shooting in the dark when it comes to data. Improved data quality can alter our perceptions of the region dramatically. When Ghana released its rebased GDP figures in 2010 (the first rebasing since 1993) the economy turned out to be 63 percent larger than previously thought.  Nigeria’s rebasing earlier this year was even more dramatic, with the estimated size of the economy increasing by 89 percent. With its GDP rebasing, Nigeria ‘became’ the largest economy in Africa and the 26th-largest in the world.