Most African countries continue to register declining economic growth in spite of the efforts and resources implemented to see a positive outcome. The most affected are the sub-Saharan countries which registered a 3% growth rate in 2015 and 1.6% in 2016. This is lowest rate recorded in the last 20 years.
World Bank economic analysis report
The Africa’s Pulse, which is the World Bank’s economic analysis report, indicates that African countries have been dogged by numerous challenges. They range from strict monetary conditions to low commodity prices. The most affected are the oil producing countries. However, the countries continue to show high sense of resilience and tremendous attempts to reinstate themselves.
6% growth rate for Ethiopia, Tanzania, Rwanda
In spite of this negative growth, some countries like Ethiopia, Tanzania and Rwanda continue to register an annual growth rate of over 6%. The leading countries in positive growth rate are Senegal and Côte d’Ivoire.
Albert Zeufack, the World Bank Chief Economist for Africa, said the positive growth has been as a result of many factors. Some include diverse structure of exports, improved business environment, useful institutions and effective policy frameworks.
Growth rate varies
The World Bank’s report also indicates that African growth rates will continue to vary across all the countries. The growth of GDP is set to increase following the stabilization of commodity prices. Investment in infrastructure, as Ethiopia is doing, will also be determinant factor on the rate of growth.
The pulse Report also proposed countries to uphold a paradigm shift in macroeconomic policies with adjustments in financial deficits. The countries also need to adjust and cope up with the existing economic challenges. Such challenges remain a threat if assumed and drag a countries effort backward. The structural reforms also play a lead role as medium-term growth is concerned.