Africa has the world's fastest urbanization rate
At 40 percent, Africa's percentage urban population is the lowest in the world despite its average increase over the past 25 years being the highest of any region in the world—3.5 percent annually. Projections show that this trend will continue at a slightly more modest rate of 3.1 percent annually over the next 25 years, with urban growth outpacing the growth of the rural population. The result will be an increase to 50 percent urbanization, with African cities adding more than 500 million people—twice as many as rural areas over the same period.
Urbanization and economic growth are intricately related as agrarian-based regional economies transition to urban economies centered on industry and services. Successful conversion requires a shift in spending to projects that focus on integrated urban planning to improve infrastructure, spur productivity, and foster income growth. The increase in urbanization and economic growth, meanwhile, is expected to stimulate demand for air travel to, from, and within the continent.
Resilient economic growth continues
Africa's economy has grown at a rate of more than 4.5 percent per year over the past 10 years despite the global recession. As a result, two-thirds of the countries in Africa are now classified as middle income or higher, according to the World Bank. In addition, many of the low-income countries are in eastern Africa, which now has the highest rate of urbanization. Indicators show that GDP will continue to grow by almost 5 percent annually over the next decade.
Africa has the youngest population of any continent and will be adding 11 million people to the job market per year for the next 10 years. High unemployment is already a challenge in many countries, further emphasizing the need for proper skills and training. The biggest risks for the region include lower commodity prices and increased volatility in the international financial markets. Even so, the expanding middle class will positively affect aviation in the region.