The economy of sub-Saharan Africa is set to grow by 5.2% in 2014, down from 4.7% in 2013, according to World Bank forecasts published recently in Africa’s Pulse.
Mining investment of natural resources and infrastructure, and strong household spending are set to boost that performance, Africa’s Pulse said.
“Economic growth continued to rise from 4.7 % in 2013 to a forecasted 5.2 % in 2014,” the report said.
“Growth was notably buoyant in natural-resources countries such as Sierra Leone and the Democratic Republic of Congo, but remained steady in Ivory Coast while rebounding in Mali,” the Washington DC-based institution said in Africa’s Pulse.
Africa’s Pulse is the bank’s twice-yearly report on the issues shaping the continent’s economic prospects.
Capital inflows also reached an estimate 5.3 % of regional Gross Domestic Product (GDP), while net Foreign Direct Investment (FDI) in the region expanded more than 30- fold in the last 20 years, boosted by new oil discoveries in many African countries, including Angola and Mozambique, the report added.
Sub-Saharan Africa has been experiencing strong economic performances in the past 10 years or so, with some countries’ economies growing at double-digit.
However, the living conditions of the majority of Africans remain precarious and miserable, to the dismay of experts who believe that state corruption and economic mismanagement is severely affecting the region’s social development, and engendering social inequality.
In many African countries, the report said, deficiencies in infrastructure were holding back per capita growth by at least 1% every year, while infrastructure limitations, particularly in power, were depressing productivity at least as much as red tape and corruption.
Image: Sub-Saharan Africa. Credit: Keaveney.wikispaces.com