By KENNEDY MUPESENI –
ECONOMIC growth for African economies registered an increase of 0.2 per cent from 3.7 per cent to 3.9 per cent in 2013 and 2014 respectively, the African Development Bank (AfDB) has said in an annual report.
The 2014 report released on Wednesday this week indicated that overall performance reflected resilience to global and regional shocks which affected the continent last year.
Despite the negative impact of low commodity prices, the ebola epidemic in West Africa as well as the fundamentalist and military insurrections witnessed in many countries, the continent achieved considerable growth, but with sharp variations between regions and countries.
In relative terms, Africa’s economic growth was higher than the 3.3 per cent global average in 2014.?Western Asia recorded 2.9 per cent, while Latin America and the Caribbean grew by 1.2 per cent.?Africa, however, grew slower than the emerging markets and developing economies of the world, which registered 4.4 per cent growth.
East Africa emerged as the best performer with a 7.1 per cent average Gross Domestic Product (GDP) growth with Ethiopia, Rwanda, and Tanzania outstandingly growing at 10.3, 6.1, and 7.1 per cent, respectively.
West Africa followed with growth averaging 6.0 per cent, a commendable performance in the light of conflicts in the region, the ebola crisis, and the decline in oil prices in Nigeria, which rebased its economy earlier in the year, posted a 6.3 per cent growth.?Central Africa recorded an average of 5.6 per cent, reflecting considerable resilience to shocks, including military insurrections and the decline in oil prices.
North Africa continued to recover from the slump in previous years, recording an average growth of 1.7 percent in 2014, compared to 1.6 percent in 2013, while Algeria witnessed a resurgence of growth to 4.0 per cent, from 2.8 per cent in 2014. Morocco recorded 2.7 per cent, from 4.7 percent in 2013.
Southern Africa, which recorded 2.7 per cent growth, from 3.6 per cent in 2013, remained sluggish and South Africa, the region’s largest and most influential economy, which had to contend with structural bottlenecks, strained industrial relations, and low investor and?consumer confidence, posted a 1.5 per cent GDP growth from 2.2 per cent in 2013.
The report said a few countries, including Ghana, Zambia, and Nigeria, experienced significant macro-economic imbalances in 2014.
In Ghana and Zambia, exchange rates depreciated sharply, stoking a rise in inflation, from 11.7 per cent in 2013 to 17 per cent in 2014 for Ghana, and from 7.0 per cent in 2013 to 7.9 per cent in 2014 for Zambia.?This was due to concerns over deteriorations in their fiscal positions leading to both countries being downgraded by international credit rating agencies.