The economic outlook for sub-Saharan Africa is cautiously optimistic, according to the World Bank report on African economies, Africa’s Pulse.
Brand South Africa reporter
The 15th edition of Africa’s Pulse, the World Bank’s biannual analysis of African economies, shows that economic growth in sub-Saharan Africa is rebounding in 2017.
“The region is showing signs of recovery, and regional growth is projected to reach 2.6% in 2017,” says the bank. “However, the recovery remains weak, with growth expected to rise only slightly above population growth, a pace that hampers efforts to boost employment and reduce poverty.”
The report notes that the continent’s aggregate growth is expected to rise to 3.2% in 2018 and 3.5% in 2019, reflecting a recovery in the largest economies.
African economies are showing signs of recovery, but #Africa is not out of the woods yet. – Albert Zeufack, @WorldBank #AfricaSOR
— World Bank Africa (@WorldBankAfrica) April 22, 2017
Total investment growth in #Africa as of 2010 was 8%, however it was close to 0% in 2015. – Albert Zeufack,@WorldBankAfrica #AfricaSOR pic.twitter.com/9I4ZP1dqOr
— World Bank Africa (@WorldBankAfrica) April 22, 2017
Optimistic but cautious
Africa’s largest economies, Nigeria, Angola and South Africa, are rebounding after the sharp slowdown in 2016. But, according to the World Bank, the “recovery has been slow due to insufficient adjustment to low commodity prices and policy uncertainty”.
Seven countries — Ivory Coast, Ethiopia, Kenya, Mali, Rwanda, Senegal and Tanzania — have shown economic resilience, reveals the data in the report. It is supported by domestic demand, posting annual growth rates above 5.4% in 2015-2017.
“These countries house nearly 27% of the region’s population and account for 13% of the region’s total GDP,” says the bank.
“As countries move towards fiscal adjustment, we need to protect the right conditions for investment so that sub-Saharan African countries achieve a more robust recovery,” says Albert G Zeufack, the World Bank chief economist for Africa.
“We need to implement reforms that increase the productivity of African workers and create a stable macroeconomic environment. Better and more productive jobs are instrumental to tackling poverty on the continent.”
The African investment story is not so hard if we get it right, the money will flow – Admassu Tadesse, PTA Bank #AfricaSOR
— World Bank Africa (@WorldBankAfrica) April 22, 2017
To read the full report, click here.
Source: World Bank
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