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By David Musyoka NAIROBI, (Xinhua)
-- The World Bank has projected the growth of Sub-Saharan Africa
economy to rise to 2.6 percent in 2017 and further to 3.2
percent in 2018 and 3.5 percent in 2019.
The Bank however
said in its Africa’s Pulse report that recovery remains weak,
with growth expected to rise only slightly above population
growth, a pace that hampers efforts to boost employment and
reduce poverty.
“A
stronger-than-expected tightening of global financing
conditions, weaker improvements in commodity prices, and a rise
in protectionist sentiment represent downside external risks to
the outlook,” says the report which was launched in Nairobi on
Wednesday.
According to the new
Africa’s Pulse, a bi-annual analysis of the state of African
economies conducted by the World Bank, several oil exporters in
the Central African Economic and Monetary Community (CEMAC) are
facing economic difficulties.
The report says
Nigeria, South Africa, and Angola, the continent’s largest
economies, are seeing a rebound from the sharp slowdown in 2016,
but the recovery has been slow due to insufficient adjustment to
low commodity prices and policy uncertainty.
The latest data
reveal that seven countries (Cote d’Ivoire, Ethiopia, Kenya,
Mali, Rwanda, Senegal and Tanzania) continue to exhibit economic
resilience, supported by domestic demand, posting annual growth
rates above 5.4 percent in 2015-2017.
“These countries
house nearly 27 percent of the region’s population and account
for 13 percent of the region’s total GDP,” says Africa’s Pulse.
Africa’s Pulse notes
that the continent’s aggregate growth is expected to rise to 3.2
percent in 2018 and 3.5 percent in 2019, reflecting a recovery
in the largest economies.
It will remain
subdued for oil exporters, while metal exporters are projected
to see a moderate uptick.
“With poverty rates
still high, regaining the growth momentum is imperative,” said
Punam Chuhan-Pole, World Bank Lead Economist and the author of
the report.
“Growth needs to be
more inclusive and will involve tackling the slowdown in
investment and the high trade logistics that stand in the way of
competitiveness,” she said.
The report calls for
the urgent implementation of reforms to improve institutions
that foster private sector growth, develop local capital
markets, improve infrastructure, and strengthen domestic
resource mobilization.
According to the
report, GDP growth in countries whose economies depend less on
extractive commodities should remain robust, underpinned by
infrastructure investments, resilient services sectors, and the
recovery of agricultural production.
This is especially
the case for Ethiopia, Senegal, and Tanzania. The report says
risks to the current recovery stem from an inadequate pace of
reforms, rising security threats, and political volatility ahead
of elections in some countries.
Albert G. Zeufack,
World Bank Chief Economist for the Africa Region, called for the
need to protect the right conditions for investment so that
Sub-Saharan African countries achieve a more robust recovery.
“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,” Zeufack added.
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SEE ALSO:
World Bank urges
sub-Saharan Africa to invest in infrastructure to spur growth
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