Economic growth in East
Africa is soaring ahead of other regions on the continent at close to 7% while
the overall outlook for the rest of Africa is cautious, but positive, a
report by African Development Bank has observed.
Job creation and ramping up manufacturing will
continue to be major priority areas for creating growth and employment across
the continent, says AfDB.
The Bank launched four of its five regional
economic outlook reports this week in Abuja, Yaounde, Nairobi and Pretoria,
with specific forecasts for West, Central, East and South Africa.
The reports follow the January launch of the 2019
African Economic Outlook, which provides a broader, continent-wide perspective.
East Africa is leading the continent with GDP
growth estimated at 5.7% in 2018, followed by North Africa at 4.9%, West Africa
at 3.3%, Central Africa at 2.2%, and Southern Africa at 1.2%.
Economic growth across Eastern Africa will remain
at a robust 5.9% in 2019, making it a promising investment and manufacturing
destination. Within the region, Ethiopia is in the lead as the fastest growing
economy with a predicted 8.2% growth in 2019, while Rwanda (7.8%); Tanzania
(6.6%); Kenya( 6%), Djibouti(5.9%) and Uganda(5.3%) follow behind.
Growth in Central Africa is gradually recovering,
but remains below the average for Africa as a whole.
The West Africa Regional Economic Outlook calls on the region to explore innovative
means of raising revenue through reforms that enhance tax collection, minimize
tax evasion, and curb illicit financial flows.
Between 2014 and 2017, West Africa’s GDP growth
trailed the rate for Africa as a whole, though it was faster than in Central
and Southern Africa.
Countries bucking the downward trend, such as Cote
d’Ivoire, Ghana and Senegal, continue to offer positive examples of economic
recovery in a sober economic environment.
Growth in Southern Africa is expected to remain
moderate in 2019 and 2020 after a modest recovery in 2017 and 2018. Southern
Africa’s subdued growth is due mainly to economic stagnation in South Africa,
the largest regional economy, which has a ripple effect on neighbouring
countries.
All the regions face similar risks to their
economic prospects in 2019–20, these include rising debt, fragility, population
growth and climate change.
From East to West, North to South, and across
Central Africa, employment remains a major concern and concerted efforts must
be made to keep up with growth rates, the reports noted.
The flagship African Economic Outlook Report
pinpoints industrialization as a key to the continent’s employment conundrum.
Regional integration, the special theme for this year’s report, is seen as a
key gateway to Africa’s economic growth, with a borderless Africa being the
foundation of a competitive continental market.
The report outlines five trade policy actions that
could bring Africa’s total gains to 4.5% of its GDP, or $134 billion a year.
First is eliminating all of today’s applied bilateral tariffs in Africa. Second
is keeping rules of origin simple, flexible, and transparent.
Third is removing all nontariff barriers on goods
and services trade on a most-favored-nation basis. Fourth is implementing the
World Trade Organization’s Trade Facilitation Agreement to reduce the time it
takes to cross borders and the transaction costs tied to nontariff measures.
Fifth is negotiating with other developing countries to reduce by half their tariffs and nontariff barriers on a most-favoured-nation basis. https://cceonlinenews.com/2019/04/05/east-africa-depicts-strong-economic-growth-says-afdb-report/
