Economy
- The world's richest countries, which promised in 2005 to double
their aid to Africa within 5 years to help lift the poorest continent
out of poverty by 2015, have neglected their promise: at the current
rate of donations, none of the UN's Africa-focused goals will be met
by 2015 (Washington Post, 25 April)
- Increased ODA to Africa has mostly consisted of debt relief; to
meet pledged increase by 2010, donors will need to increase aid to
Africa by 16% a year
- Sub-Saharan Africa received $12.5 billion in FDI this year, down
from $13.8 billion last year, though both are still much higher than
any past amount of FDI
- Growth in Africa is likely to average 6% in 2007, compared with
a world gross domestic product growth of 3.4 % this year (The UN 2007
mid-year World Economic Situation and Prospect Report)
- However, this growth is highly concentrated in a narrow range of
activities (largely based on raw materials' vulnerable to downturn
in cycles) making many African economies extremely vulnerable to exogenous
factors such as aid flows (Reuter News-African economies grow, but
prosperity elusive, 28 May 2007)
- After Middle East/North. Africa, Sub-Saharan Africa had the smallest
amount of total cross-border loan commitments in 2006, with $18.8
billion; Europe and Central Asia, the largest recipient by region,
had $93.6
- Sub-Saharan Africa's GDP is projected to grow steadily at about
5.8% each year for the next 3 years; the average projection for developing
countries is 6.7%
- Sub-Saharan Africa's growth rate will remain most constant compared
with East Asia, which is higher but decreasing, Europe, which is slightly
higher and decreasing, Latin America, which is lower and decreasing,
South Asia, which is much higher and decreasing, and the Middle East,
which is lower and increasing.
- Only two African countries, Seychelles and South Africa, have entered
the international bond market, though others are expected to in 2007
- Ongoing natural and political obstacles have hampered growth; Chad,
Côte d'Ivoire, DRC, Eritrea, Lesotho, Nigeria, Seychelles, Somalia,
Sudan, Swaziland, and Zimbabwe all face political turmoil which undermines
possibilities of growth
- Countries with metal or mineral industries (Burundi, DRC, Ghana,
Mali, Mozambique, Tanzania, Zambia) have benefited from high international
prices
- Reform-oriented economies have done well, including Burkina Faso,
Ghana, Mali, Mozambique, Senegal, Tanzania; as have countries emerging
from conflict-Burundi, Sierra Leone, Liberia, DRC
- High fuel costs and energy scarcity remains a prevailing challenge
in Africa
- Oil-exporting countries primarily benefit from increased FDI; resource
industries, towards which most FDI is directed, however, grow faster
than the rest of the economy
- Energy shortages may constrain output in Burundi, Kenya, Malawi,
Rwanda, Tanzania, Uganda, and Zambia
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