Gross domestic product (GDP) in 18 African countries grew by 5 per cent or more in 1996, while Africa's overall GDP growth rose from under 3 per cent in 1995 to over 4 per cent, said a report by the UN Secretary-General.
The World Economy at the Beginning of 1997, prepared by the Secretary-General for the UN Economic and Social Council, listed higher international commodity prices and better weather among the reasons for the strong performance. These factors contributed to strong growth in the primary product sectors, while increased exports of minerals and agricultural products also had beneficial effects on domestic demand and output. Some of this growth should be considered "a temporary phenomenon," the report pointed out, arguing that to sustain growth in sectors other than the primary, Africa requires continued reform efforts.
International Monetary Fund
Sudan avoids expulsion from Fund over debt arrears
Threatened with expulsion from the International Monetary Fund (IMF) for failing to make debt payments, Sudan has agreed to a tough, 10-month economic stabilization programme which aims to enable the resumption of regular debt payments and prevent $1.7 bn in arrears on IMF loans from rising.
With monthly monitoring by the IMF, programme targets include gross domestic product (GDP) growth from 4.7 per cent to 4.9 per cent by the end of 1997 and lower inflation (from 118 to 65 per cent). Other programme targets include a budget deficit down from 3.4 per cent of GDP to 1 per cent; central bank lending down from $1.5 bn to $500 mn; and a narrower gap between the exchange rates in the official and the parallel markets.
Sudan was suspended from the IMF in 1993 with debt arrears to the Fund of $1.6 bn. The country's 1996 external debt totaled $20 bn, approximately 270 per cent of GDP.
Agriculture
Ethiopian grain headed to drought victims in Kenya
In "a remarkable turnaround," the UN World Food Programme (WFP) says, Ethiopia is selling some 7,450 tonnes of maize and beans to WFP for delivery to drought victims in Kenya (see page 30). Ethiopia suffered roughly a decade of severe food shortages but is set to reach a cereal production peak of 11.1 million tonnes in the 1996/97 crop year, 17 per cent more than in 1995/96, reports the UN Food and Agriculture Organization. Although pests and poor rains have caused shortages in regions with a history of food deficits, food aid needs in 1997 could be 60 per cent less than last year. Much of this will be bought locally, as was done in 1996 with 80 per cent of food aid.
Stop press:
Johnson Sirleaf resigns from UNDP
Ms. Ellen Johnson Sirleaf, Assistant Administrator of the UN Development Programme (UNDP) and Director of its Regional Bureau for Africa since 1992, has resigned in order to run for President of Liberia. Her replacement was yet to be announced as we went to press.