Africa's economy on track despite hiccups: McKinsey

File: A McKinsey report says business opportunities in Africa will run at R5,6-trillion rand by 2025.

JOHANNESBURG – Five years ago, growth accelerated in almost all regions on the African continent.

Since then, the African growth story has changed considerably.

Among others, South Africa's economy has seen a drastic slow-down.

Despite this, a McKinsey study shows the continent is still the next big emerging economy opportunity.

Management consultants McKinsey rated South Africa as one of the slow growers. It accounts for about 46 percent of Africa’s GDP - but has grown less than the global average of 2,9 percent this year.

The other "slow growers" included Libya, Egypt and Tunisia.

South Africa, however ranked higher on McKinsey’s Africa Stability Index.

The report  said business opportunities in Africa will run at R,56 trillionby 2025.

McKinsey said Africa has 400 companies with revenue of $1-billion.

But they do not as yet qualify for the Fortune 500 list of the world's top businesses.

“China did it through IPOs all over the world and that is a great example and Africa can do it as well…It’s not so much about ethical questions but delivering on services so investors, entrepreneurs and businesses can continue invest in public institutions to sustain growth,” said Georges Desvaux, managing partner at McKinsey and Company.

The study emphasised that although there are some challenges, Africa’s economic lions are still on the move.