CAPE TOWN, (Xinhua) --
Political instability tends to peak around election time for
some African nations, which affects economic growth, according
to a report released on Wednesday.
“This scenario tends
to dampen the GDP growth of some countries, since economic
growth shares a complex relationship with both elections and
accompanying political instability,” said the report emailed to
commissioned by the Institute of Chartered Accountants in
England and Wales (ICAEW) and produced by partner and forecaster
Oxford Economics, provides a snapshot of the region’s economic
countries have a positive economic outlook, apart from those
with upcoming elections, the report said.
According to the
report, East Africa continues to report the highest GDP growth
on the continent even though the region’s economic growth is
expected to ease slightly, from 6.8 percent in 2017 to 6.3
percent this year. Ethiopia reported the highest forecast at 7.8
percent, while the lowest forecast for the region was at 3.8
percent by war-torn South Sudan.
Lower growth ranking
for some countries in the region demonstrates how large an
effect political instability can have on economic prospects, the
For example, Kenya’s
growth rebounded to 5.4 percent this year after it dropped to
4.9 percent in 2017. The drop was attributed to political
uncertainty during last year’s elections.
In the Democratic
Republic of the Congo (DRC) where elections will be held in
December, political tensions are set to rise and remain the main
obstacle to the GDP growth forecast of 4.1 percent this year.
narrative is also seen in Southern Africa, being the slowest
region with GDP forecast set to expand only by 1.2 percent.
regarding land and property rights in South Africa ahead of
polls in 2019 has frightened investors, the report said.
The country is
expected to post GDP growth of just 0.7 percent, according to
Zimbabwean government is suffering from post-election
credibility difficulties, with international lenders and
investors unconvinced that the scenario has improved in
Harare—after violence and fraud allegations marred July’s
Egypt, which held
elections in March to overwhelmingly return President Abdel
Fattah al-Sisi to power, is expected to grow by 5.3 percent this
The certainty of
Sisi’s grip on power appears to be helping the country’s
economic rebound, the report said.