Economic growth in Nigeria and some Africa counties is
rebounding in 2017 after registering the worst decline in more than two decades
in 2016, according to the new Africa’s Pulse, a bi-annual analysis of the state
of African economies conducted by the World Bank.
Nigeria, South Africa, and Angola, the continent’s largest
economies, are seeing a rebound from the sharp slowdown in 2016, although the
recovery has been slow due to insufficient adjustment to low commodity prices
and policy uncertainty.
World Bank in a statement made available to DAILY POST on
Wednesday, said the Sub-saharan region is showing signs of recovery, and
regional growth is projected to reach 2.6% in 2017.
“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”, World Bank said.
The latest data reveal that seven countries (Côte 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% in 2015-2017.
“These countries house nearly 27% of the region’s population
and account for 13% of the region’s total GDP. The global economic outlook is
improving and should support the recovery in the region”.
Africa’s Pulse 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.
The region had experienced a slowdown in investment growth
from nearly 8% in 2014 to 0.6% in 2015.
“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, World Bank
Chief Economist for the Africa Region.
“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.”
“With poverty rates still high, regaining the growth
momentum is imperative,” says 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.”
The Africa’s Pulse report dedicates a special section to
analyzing the region’s infrastructure performance across sectors, revealing
dramatic improvements in quantity and quality of telecommunications contrasted
by persistent lags in electricity generation and access.
Overall, 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.
By Wale Odunsi
