Economic growth in sub-Saharan Africa is seen rising between this year and 2019, helped by better commodity prices. According to the lender in its latest "Africa's Pulse" report, economic growth was seen expanding to 2.6 percent this year and further to 3.2 percent in 2018 and 3.5 percent a year later.
World Bank chief economist for Africa Albert Zeufack said the economies of Angola, Nigeria and South Africa -- which make up 60 percent of GDP -- was recovering but at a weak pace and per capita income was growing in negative terms.
"We are pleased that Africa is back to growth but we are not out of the woods yet. That's why we need to strengthen reforms to make sure stability is maintained," Zeufack said.
He said the upturn in economic activity is expected to continue in 2018-19, reflecting improvements in commodity prices, a pickup in global growth, and more supportive domestic conditions.
The bank said the 2016 growth was the worst for the region in more than two decades, hurt by poor performance in Angola, Nigeria and South Africa. Though Mali and Ivory Coast grew more than six percent.
Zeufack said tackling infrastructure was key to stability. Only 35 percent of Africans have access to electricity which is the lowest among developing countries and that road density on the continent was also the lowest in the world.
Risks to growth could occur if there is a slippage on reforms, heightened security concerns and policy uncertainty, leading to a sudden stop in investments, Zeufack said. He also added that the growing protectionism in the West could pose a risk for sub-Saharan African economies but it could also present opportunities for the continent to be self-sufficient and create jobs.
Comments
Post a Comment