African countries south of the Sahara continue to enjoy an upward trend in economic growth. According to the World Bank’s Global Economy Prospects, strong domestic demand has allowed sub Saharan African countries to continue their robust growth trajectory, despite subdued global demand conditions. In 2012, the region grew 5.4 per cent, excluding South Africa, the region’s largest economy.
Investments in both the resource and non-resource sectors account for this growth, following the report. Net foreign direct investment inflows to sub Saharan Africa are expected to reach about $40 billion in 2013, compared to $32.1 billion in 2012. The growth has not only come from the resource sector. Non-resource sectors such as finance, banking, telecommunication, transportation and retail trade also enjoyed substantial growth.
Positive factors such as better weather conditions, improved harvests, decelerating inflation, relaxation of earlier interest rate hikes and increased remittance inflows broadly supported the resilience in household spending, albeit with differences across countries in the region. Most governments are emphasizing the need to boost the economy by addressing infrastructural weakness.
Some countries in the region, such as South Sudan, Mali, Central Africa Republic and Guinea Bissau, have not enjoyed this success story, due to civil unrests.
By Nwoalezea N. Patrick | Afroscandic
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