African growth rate highest this century

Growth in Africa in 2004 was the highest for 8 years, according to a recent report by the Organization for Economic Cooperation and Development and the African Development Bank.

Central Africa saw a 14.4% rise in growth in 2004 due to the expansion of its oil production capacity. East Africa grew by 6.8%, while West Africa grew by just half that amount, 3.4%, noted the BBC.

Surely West Africa's figures were hurt by the devastating civil war in Côte d'Ivoire, one of the region's main economic engine, even if conflicts wound down in smaller economies like Senegal, Sierra Leone and Liberia.

Greater political stability in some countries and a significant rise in official development aid to Africa helped foster growth.
African agricultural production also took a turn for the better after the ending of the drought of 2003, which hit Ethiopia, Malawi and Rwanda.

Though the report warned that conflicts in Zimbabwe, Côte d'Ivoire and the DR Congo, as well as the Darfur genocide will hinder those countries' economic chances.

Additionally, The report highlighted what it calls the "missing middle", the shortage of small and medium-sized businesses (SMEs).

Outside of North Africa, Mauritius and South Africa, successful businesses tend to be either very small, such as cooked food sellers, hairdressers and tailors, or very large, such as oil companies or multinationals.

Lack of access to affordable bank loans and credit is the biggest obstacle to the development of African SMEs, the report found.