Last week, US President Barack Obama undertook a much publicised visit to Africa, visiting Kenya and Ethiopia. In Ethiopia, he addressed the African Union. But has anyone thought about why he visited Kenya and made it his first port of call?

Was it to visit his father’s family and explore his ancestral origins?

The American people would certainly not countenance spending almost R1-billion on a family reunion.

Was it because of where Kenya finds itself in the international fight against terror?

Without a doubt, that was an important aspect of Obama’s visit. But Kenya is no different in this respect to many other countries on the continent.

The most interesting answer to the question as to why Obama visited Kenya has to do with its standing as a great example of an emerging African economic success story.

The Kenyan story points towards the 21^st century being Africa’s century of development, growth and job creation.

In my line of work, you often encounter expressions that have somehow lost their meaning through repetition or perhaps just plain disappointment. Election promises that evaporate soon after the results are read out or lofty goals that sound great from a stage but never get put into action.

And the great pity is that many of these phrases are packed with truth and possibility, but the repeated failure to deliver on them has rendered them almost useless. People hear them and quietly roll their eyes.

One of these phrases is: “We must unlock Africa’s potential.” We’ve all heard it many times. And whenever it is brought up, there are always people whose instinctive response is dismissive skepticism.

Indeed when images of Africa are portrayed anywhere else, it is often seen as poor, disease-burdened and a continent at war.

Factually, conflict in Africa is in decline. Many Africans do live in poverty but it’s a story we can change and one that is changing.

We are demonstrating more potential that many regions in the world.

Africa has what it takes to do what the big Asian economies did in the last half of the 20^th century.

Six of the world’s 10 fastest growing economies over the past decade are in Africa, and the International Monetary Fund predicts this will rise to seven out of 10 in the next five years.

A dozen African economies have been growing at more than 6% per annum for several years now, and sub-Saharan Africa is now the region with the highest growth in the world.

Since 2000, trade between Africa and the rest of the world has increased by 200% while the continent’s foreign debt decreased by 25%.

Much of this growth came on the back of the boom in commodity prices in the first decade of this century, but countries are preparing for life after mining and commodities by pouring resources into eco-tourism, financial services and manufacturing.

Nigeria, Africa’s largest economy by gross domestic product and population, has big plans of its own. The government has made it known that it wants Nigeria to become one of the world’s 20 biggest economies by 2020. Perhaps this is a little ambitious, but the intent is there, and it could get close.

Some experts believe that, by the middle of this century, Africa’s economy could be almost 10 times bigger than it is today. By then, Nigeria will be home to about a fifth of Africa’s population. Their size and growth could lift a huge number of Africans out of poverty and into a new African middle class.

For the first time, the boom in African economies is not being driven purely by mining resources and commodity prices. Foreign investors are recognising the massive markets and labour resources in Africa and the investments are pouring in.

Last year, foreign investment in Africa hit a record $80-billion – much of it in manufacturing and retail. The continent is an investor’s dream, with higher rates of return than any other developing region.

Obama’s visit has put a spot light on what is fast becoming Africa’s Silicon Valley. In Kenya, there is great innovation and the development of smart trading technology.

M-Pesa is a key example of innovation and a reflection of the economic potential of cellphone and telecommunication penetration in the region.

Yes, many African states still have infrastructural backlogs, which will require us to invest and innovate in sectors such as energy, transport and roads, ports and border control.

So what brought about this change? What did the governments of these fast-growing African economies do differently?

The short answer is: they got out of the way. There are many reasons unique to each country, but, as a general rule, the privatisation and liberalisation of these economies have allowed them to thrive.

In each of these countries you will find fewer regulations, less red tape, easier access to markets. These countries have made it simpler to start a business, simpler to run this business and simpler to connect with other businesses and markets.

And where government action is required, leadership is forthcoming. A quote from Ghanaian President John Mahama during his state of the nation address in February 2015 is instructive. Addressing Ghana’s own energy challenge he stated: “I do not intend to manage the situation as has been done in the past. I intend to fix it! I owe it to the Ghanaian people. I, John Dramani Mahama, will fix this energy challenge.”

So where does South Africa fit into this African story?

Well, we should be driving this train, but unfortunately we’re not even on the train yet. And if we don’t act soon, we could miss it altogether.

For the first decade of this century things were looking up for us. High commodity prices led to a period of strong growth, and our exports increased from just over $30-billion in 2002 to almost $100-billion in 2011. But we failed to properly capitalise on the commodities boom.

We now find ourselves paralysed by policy indecision, suffocated by red tape and strangled by out-of-control government spending. We should be up there with economies growing by 6% and 7%, but we’d be lucky if we hit 2% anytime soon.

We can turn it around. But we must recognise that whatever Africa needs to do to realise its potential, applies to us.

And what does Africa need to do? You could write a very thick book on this – and several people have – but I’d like to list five steps that could send Africa’s economy soaring.

1. Become business-friendly.

2. Make it easier to trade.

3. Cut Corruption.

4. Invest in infrastructure.

5. Educate our children.

It sounds easy enough when you list them like that, but each of those points will require a considerable amount of will and effort.

Step 1 – Becoming more business-friendly:

As I mentioned earlier, governments should not get in the way of business. They must reduce regulations, support entrepreneurs and remove the obstacles to starting and running a business.

Africa is home to some of the most creative and innovative people in the world. The way Africans have embraced mobile technology in commerce is testament to this, and many developed nations are now learning from Africa about the true power of the mobile phone.

Governments must harness and enable this culture of entrepreneurship and innovation, and not kill it with regulations.

Step 2 – Enabling trade:

We need to recognise the huge markets right on our own doorsteps. Africa trades far more with the rest of the world than it trades with itself. In Western Europe, intra-regional trade accounts for around 60% of their total trade. In Africa this is only 10%.

By streamlining import and export procedures, by introducing one-stop border posts, by using single regional visas, we can really open new markets across Africa.

It’s critical that transport, air, road and our ports become easier to get through and more efficient for business

Step 3 – Cutting corruption:

The only way to eliminate corruption is through a zero-tolerance approach, whether it’s in the government or the private sector. And to do this, countries need institutions such as the judiciary and prosecuting authorities that are strong and independent.

The shadow of corruption still hangs large over most African governments. Corruption steals precious money meant for things such as service delivery and job creation. As long as it is tolerated, it will drag on the continent’s economy like a handbrake.

Step 4 – Investing in infrastructure:

Instead of massive bloated governments and burgeoning public sector wage bills, Africa should invest its money in the kind of infrastructure that enables growth.

Road infrastructure, rail networks, broadband technology, water and, of course, energy. These are the things that offer a return on investment in the long run, and this is where the bulk of our money should be going.

Step 5 – Education:

The world is changing. Our industrial economy is slowly being surpassed by a knowledge economy. To keep up with this change, it is absolutely crucial that the next generation of Africans is a generation of innovators and entrepreneurs. And the only way to achieve this is through quality education: literacy and numeracy in the lower grades, maths and science in the later grades.

If we can manage these five things, nothing will hold this continent back.

Obama addressed the African Union last week, speaking at length about Africa’s enormous potential and its challenges.

And one of the things he pointed out was the simultaneous advantage and threat posed by the continent’s youthful population.

Advantage, because the fastest economic growth is achieved by regions with younger demographics. And threat, because large numbers of young, unemployed, voiceless people can be a spark in a powder keg.

Africa’s population is set to double by 2050. Depending on how we respond in providing opportunities for these young people, this can either be a big problem or it can be an incredible advantage for the continent.

I honestly believe it will be the latter. DM