Is the Commodities super cycle slowdown a shock for Africa?
Tumbling commodity prices have refocused attention to sustainability of growth in Africa. For over a decade, high demand and rising prices for Africa’s commodities have contributed significantly to growth on the continent. However, since 2011, continued fall in the price of oil and natural gas, and, more recently other minerals, are threatening to turn tailwinds into headwinds. Declining demand in major emerging economies coupled with continuous fragility in developed economies, as well as volatility in the currency and shrinking confidence all call for a reality check.