Header advertisement
Header advertisement
Header advertisement
  • HOME
  • Business
  • World Bank: Forecast Growth for Sub Saharan Africa Still Weak
Title

World Bank: Forecast Growth for Sub Saharan Africa Still Weak

FacebookTwitterWhatsAppEmailGoogle+
World Bank advises African economies to strengthen the efficiency in selection and monitoring of public infrastructure projects.
World Bank advises African economies to strengthen the efficiency in selection and monitoring of public infrastructure projects.

    By: Paul Ampurire

  • Apr 20,2017
  • 3157 Viewed

Economies within Sub-Saharan African Africa will require to not only undertake public investment in infrastructure but strengthen their project selection and monitoring capacities if they are to realize a stronger recovery in economic growth in 2017.

This is according to the Africa’s Pulse, a bi-annual analysis conducted by World Bank on African economies.

The report which was released on Wednesday forecasts that the Sub Saharan Africa region is set to grow by a meagre 2.6% in 2017, not enough to boost employment and reduce the high levels of poverty.

The region experienced the worst economic decline in more than two decades in 2016, largely due to a long drought.

Economic analysts at the World Bank say countries still need to address the wastefulness in public spending, invest wisely while keeping an eye on their debt levels lest returns on public investment could be negatively affected.

“There’s need for fiscal discipline and structural reforms. Equally, borrowing must be managed so that interest rates are properly managed,” said Punam Chuhan-Pole, the World Bank Lead Economist who authored the report.

She stated that with the poverty rates still high, growth needs to be inclusive as well as tackle the slowdown in investment and high trade logistics all of which hamper competitiveness.

The report says oil exporting countries in the Central African Economic and Monetary Community (CEMAC) continue to face economic difficulties.

“The latest data reveal that seven countries (Côte d’Ivoire, Ethiopia, Kenya, Mali, Rwanda, Senegal, and Tanzania) continue to exhibit economic resilience, supported by domestic demand, posting annual growth rates above 5.4% in 2015-2017,” the report revealed.

Dr. Albert Zeufack, World Bank’s Chief Economist for the Africa Region said; “As countries move towards fiscal adjustment, we need to protect the right conditions for investment so that Sub-Saharan African countries achieve a more robust recovery.”

“We need to implement reforms that increase the productivity of African workers and create a stable macroeconomic environment. Better and more productive jobs are instrumental to tackling poverty on the continent,” he added.

Many African countries continue to grapple with graft which often impedes smooth implementation of infrastructure projects.

Zeufack notes that in order for these economies to achieve significant growth, procurement in these projects needs to be transparent and competitive. This, he said, will spur private sector investment especially in sectors of manufacturing and services.

According to the report, however, external risks will be imminent, among them; stronger-than-expected tightening of global financing conditions, weaker improvements in commodity prices, and a rise in protectionist sentiment.

Domestically, innadequate reforms, rising security threats, and political volatility ahead of elections in some countries pose a threat to the current recovery.

In February, World Bank in its economic update on the state of Uganda’s economy predicted that given its current average growth of 4 to 5% the country might fail to attain middle income status come 2020. The minimum growth rate for any country to get into lower middle income status is 10%.

At the time, World Bank had attributed Uganda’s sluggish growth to the low commodity and fuel prices in international markets, the crisis in South Sudan, and severe drought have continued to strain investment and exports.

Last week, Bank of Uganda said the earlier forecast 4.5% GDP growth for the 2016/2017 financial year might not be achieved due to weak economic performance in the first two quarters. The Central Bank attributes this to the climatic conditions.

# , # , #

Don't miss the stories AND LET'S go!!!

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...Loading...
 
Related Articles

URA Speaks Out as Good African Coffee is Reopened

The Uganda Revenue Authority (URA) has reopened coffee roasting and packaging company, Good African Coffee, Chimp Corps report. The company which is owned by renowned

UK Ambassador Hails NRM

By Ibrahim Shamiru Byakika The British High Commissioner to Uganda Peter West has commended the ruling NRM Party and President Yoweri Museveni in particular for

EXCLUSIVE: Kanyamunyu Company Fires Back in Shs 13M Tax Row

Cargo and Freight company, Quantum Express Logistics Limited (QEL) has described their closure by tax governing body, Uganda Revenue Authority (URA) as “unreasonable” and proof

Minister Tumukunde: Uganda’s Oil Resources Pose Serious Security Threats

Uganda’s Minister for Security Lt. Gen. Henry Tumukunde wants stakeholders in the oil sector to begin giving as much attention to security as has been

Uganda To Influence Global Labour Issues after Scooping Top ILO Post

Officials at the Ministry of Gender, Labour and Social Development are walking shoulders high after Uganda was elected to the Governing council of the International

URA Closes Kanyamunyu’s Quantum Express Logistics Over Shs13M Tax Arrears

Tax body, Uganda Revenue Authority (URA) has closed Cargo and Freight company, Quantum Express Logistics over unpaid taxes. The company which is owned by city

Stanbic Bank to Release Monthly Index on Uganda’s Business Environment

Stanbic Bank will effective this month be releasing a monthly survey indicating the business environment in Uganda’s private sector. The Private Managers’ Index which will

Efficiency in Logistics Critical in Unlocking Cross Border Trade

Senior Director for Trademark East Africa Richard Kamajugo has challenged the technocrats in both public and private sector to work towards improving the efficiency in

Equatorial Guinea President, Museveni to Speak at Ongoing Oil & Gas Conference

The President of Equatorial Guinea H.E Teodor Obiang Nguema Mbasogo and President Yoweri Museveni are expected to attend the ongoing Oil and Gas conference and

Slow Business at New Mirama Border Post Disappoints URA

Officials of the Ugandan Revenue Authority manning the newly refurbished Mirama Hills border post in South Western Uganda have expressed concern over the slow business



Header advertisement
Header advertisement
Error, no group ID set! Check your syntax!
Latest News


Court Dismisses Walusimbi’s Case Against FUFA

The high Court in Kampala on Thursday  dismissed the case filed by football wor... (Read More)

Uganda High Commission in New Delhi Woos Mumbai-Based Solar Investor to Uganda

URJA, a Mumbai-based company has promised to invest in solar energy in Uganda, C... (Read More)

Pfizer Moves to Reduce Cost of Vaccines in Uganda

The drive to eliminate diseases globally through vaccination has gathered pace, ... (Read More)

Grassroot Organization, Community Empowerment an Ideal Foundation for Aspiring Museveni Successors

By: Boaz Byayesu Community empowerment is better than pompous democracy talk and... (Read More)

Uganda to Host African Great Lakes International Conference

Uganda is set to host African Great Lakes International conference which is aime... (Read More)

House Adjourned Due to Absence of Finance Ministers

The Speaker of Parliament Rebecca Kadaga has Thursday adjourned plenary sine die... (Read More)

Gov’t to Register Primary School Children for National IDs

Government through the Ministry of Education and Sports (MoES) is set to start a... (Read More)

Wealth Creation Major Remanded Over Unlawful Possession of Machine Gun

Makindye General Court Martial Chairman Lt Gen Andrew Gutti has charged and rema... (Read More)

President Nguema Tips Uganda on Oil Sector Development

The President of Equatorial Guinea Teodoro Obiang Nguema Mbasogo who is in Ugand... (Read More)

Mutebi Optimistic KCCA FC Can Advance from Tough Group

Kampala Capital City Authority Football Club (KCCA FC) head coach Mike Mutebi ha... (Read More)

Politics

UK Ambassador Hails NRM

By Ibrahim Shamiru Byakika The British High Commissioner to Uganda Peter West ha... (Read More)

 

Error, no group ID set! Check your syntax!
Special Reports

Court Attaches NSSF Bank Accounts in Shs 14bn UTL Pension Row

The Court of Appeal has issued a garnishee order attaching two bank accounts of ... (Read More)
Travel

Qatar Airways to Offer Discounted Flights in Latest Global Sales Campaign

Qatar Airways has rolled out a global campaign to offer amazing discounts to tra... (Read More)
Like Us on Facebook
Acquistare Cialis here.