According to a World Bank Report, “Africa’s growth set to reach 5.2 percent in investment Growth 2014”, economic growth for Sub-Sahara Africa countries is expected to rise from 4.7% in 2013 to 5.2% in 2014.
This growth, according to the report, will be influenced by rising investments in natural resources and infrastructure, and strong household spending.
The World Bank report continues that growth was notably buoyant in resource rich countries, including Sierra Leone and the Democratic Republic of Congo.
Capital flows to Sub-Saharan Africa, the report asserts, continues to rise, reaching an estimated 5.3 percent of regional Gross Domestic Product (GDP) in 2013, significantly above the developing- country average of 3.9 percent.
Net foreign direct investment (FDI) inflows to the region grew by 16 percent to a near-record USD 43 billion in 2013 and that it is boosted by new oil and gas discoveries in many African countries including Angola, Mozambique and Tanzania.
Tourism, the report also states, grew notably in 2013 helping to support the balance of payments of many African countries and according to the UN World Tourism Organization, International tourist arrivals in Sub-Saharan Africa grew by 5.2 percent in 2013, reaching a record 36 million, up from 34 million in 2012, contributing to government revenue, private incomes, and jobs.
In some countries such as Mauritius, Rwanda, and Tanzania, modern services exports recorded annual growth rates of over 10 percent between 2005 and 2012, with Rwanda starting from a low base of less than USD 40 million in services exported in 2005 to over twice the amount at almost USD 85 million by 2012.
By Ade Campbell
Tuesday April 15, 2014