ECONOMY
Better growth for sub-Saharan Africa
Posted Thu, 07 Apr 2005
Growth in sub-Saharan Africa was expected to pick up this year due to past reforms and a more peaceful environment, according to the World Bank's Global Development Finance Report released on Wednesday.
Relatively high metals and minerals prices would contribute to good performance in many countries, notably South Africa, while continued upward pressure on oil prices would benefit regional oil exporters such as Nigeria.
The transition to peace in a number of countries was improving growth prospects, with Ethiopia and Sierra Leone expected to perform particularly well.
The projected upturn in Europe, the region's main trading partner, should also stimulate growth, while rising exports to China would play an increasing role.
However, the bank cautioned that per capita gross domestic product growth in the region would lag the rest of the world, implying a further widening of income gaps.
"Historically, economic growth in Africa has been insufficient, inadequately
shared, and short-lived. The fact that a number of African countries are registering relatively healthy growth rates underscores the potential for an acceleration of economic growth throughout the continent," said Gobind Nankani, the World Bank's vice president for Sub-Saharan Africa.
He said it was crucial that countries build in strategies enabling poor people to participate in, and contribute to, continued economic expansion.
The report identified as risks to the current favourable climate a sharp depreciation of the dollar which could result in major capital losses for developing countries with large dollar reserves.
Higher global interest rates that could contribute to wider emerging-market bond spreads were also risks.
Capital flows to developing countries continued to recover, but at a slower pace.
Sapa
| 
