JOHANNESBURG (Reuters) - Africa's strong growth will continue at a rapid pace and investors and business can not afford to ignore the continent's potential which goes far beyond commodities, according to a McKinsey Global Institute study.
The study released on Friday by MGI, the economics research arm of consultancy firm McKinsey, said Africa's GDP grew by 4.9 percent between 2000 and 2008, making it the third fastest growing region in the world.
In 2008, the continent's combined GDP was $1.6 trillion and this could increase by a trillion dollars in the next 10 years.
"We find that Africa's economic growth surge was widespread across countries and sectors and that its roots extend far beyond the global commodity boom," the study said.
Natural resources only directly accounted for 24 percent of Africa's combined GDP from 2000 to 2008 and GDP grew at a similar rate in big mineral exporting countries than in countries without resource exports.
"While there remain risks to growth in any individual country, our analysis suggests that the continent's long-term growth prospects are quite strong," the study said.
Future growth will continue to be boosted by global demand for commodities while the continent's ability to create new types of partnerships with foreign investors and increased access to international capital will also lift growth.
Africa has a large consumer market which is bound to grow over the coming decade. In 2008, Africa households spent $860 billion -- more than households in India or Russia.
Household spending is projected to increase to $1.4 trillion over the next ten years if the continent's GDP grows at its current level. The labour market will exceed that of China and India by 2040 and is expected to be over 1.1 billion then.
The growing consumer spending will create markets attractive to global corporates.
