A new report from the World Bank has stated that Sub-Saharan Africa will continue to enjoy faster economic growth despite the volatile nature of the global financial climate
The organisation warned, however, that the region’s economy remained vulnerable due to the high cost of fuel subsidies and the impact of natural disasters.
“African economies continue to show resilience and some of the fastest-growing economies in the world are now in Africa,” declared World Bank vice president for Africa Obiageli Ezekwesili.
“The urgent agenda remains sustaining the macroeconomic reforms while accelerating the structural reforms that will deliver the right quality of growth that creates jobs and raises incomes on the continent.”
Ezekwesili was responding to the organisation’s latest issue of Africa’s Pulse which carried the new report on Africa’s economic prospects.
The report said that the Euro zone debt crisis and tighter domestic policies in some large developing countries had pushed African exports lower in late 2011.
The more recent strengthening of other commodity prices, however, had helped lead to an expansion of export values for exporters in both the agricultural and metal and mineral industries.
Economic growth in Africa grew at 4.9 per cent in 2011, just 0.1 per cent short of the pre-crisis average, while more than a third of countries in the region attained growth rates of at least 6 per cent.
According to the report, the fastest growing economies in 2011 were the resource-rich countries of Ghana, Mozambique and Nigeria, as well as Rwanda and Ethiopia, which all posted growth rates of at least 7 per cent.
The World Bank also said that that overall capital flows to Sub-Saharan Africa rose by $8 billion in 2011 to $48.2 billion, with foreign direct investment responsible for more than 80 per cent of the increase.
