Browsing: sub-Saharan Africa economic growth

• The Africa Pulse report notes that Sub-Saharan Africa exits recession this year, but recovery is still timid and fragile
• It adds that the region is reforming, and notes that what is most needed to boost and sustain economic recovery is financing

The World Bank now says that Sub-Saharan Africa is set to emerge from the 2020 recession sparked by the COVID-19 pandemic with growth expected to expand by 3.3 per cent in 2021.

This is one per cent higher than the April 2021 forecast according to its latest edition of Africa’s Pulse.

The bank said that the rebound is currently fueled by elevated commodity prices, a relaxation of stringent pandemic measures, and recovery in global trade.

“Commodity prices remain well above their pre-pandemic levels, with several reaching all-time highs. Oil prices rose above their pre-pandemic levels in the first half of 2021 but have plateaued more recently due to demand …

The Sub-Saharan Africa economic growth is forecast to resume to 2.8 percent in 2021 and further rise to 3.3 percent in 2022 according to World Bank.

The growth is due to higher commodity prices, containment of the pandemic, and stronger external demand mostly from the United States and China.

According to the recently updated report from World Bank, despite the provision of vaccines by COVAX, procurements, and logistics challenges are expected to continue to affect the rollout of the vaccination. In the Central African Republic, Kenya, Niger, and Equatorial Guinea delays in major investments in extractives and infrastructure due to policy uncertainty and the existing effects of the pandemic will affect the recovery of the economies.

“Per capita income levels in 2022 are expected to be 4% lower on average than in 2019. Conditions in the region’s fragile and conflict-affected countries are expected to be particularly challenging; their average output …