According to the World Bank, the three largest economies of the region has remained subdued at the beginning of the year but the region is expected to pick up to a lower-than-expected 2.9% in 2019.
The Washington-based monetary institution stated this in its latest report, Global Economic Prospects titled: ‘Heightened Tensions, Subdued Investment June 2019,’ which was released on Wednesday.
The report states that “growth has been robust in non-resource-intensive countries in the region, particularly Rwanda and Uganda, supported by public investment. In Benin, Côte d’Ivoire and Rwanda, good harvests have boosted agricultural growth.”
While devastating cyclones took a heavy toll on human life and caused extensive damage in the Comoros, Malawi, Zimbabwe, and Mozambique.
Breaking down activities in the largest three Africa economies hampering, the World Bank projects that global issue such as crude oil prices may hamper growth in two African economies – Angola and Nigeria.
“Growth in Nigeria is anticipated to edge up to 2.2% in 2020, but foreign exchange restrictions, supply disruptions in the oil sector, and a lack of needed reforms are seen as constraints to stronger growth. Elsewhere in the region, growth is expected to rise to 4.9% next year.
“Angola is expected to emerge from three years of contraction in 2019, with the recent growth in the non-oil sector reflecting business environment reforms. Still, a decline in oil production has led to weaker-than-expected growth this year.
“Growth in South Africa is anticipated to rise to 1.5% in 2020, predicated on fading policy uncertainty and on a gradual growth dividend from business environment reforms. Growth in Angola is anticipated to accelerate to 2.9% in 2020, reflecting an increasingly favorable business climate and a boost from new capacity coming onstream in the oil sector,” the report states.
Overall, the Bretton Woods Institution advised African nations to shift from composition of debt toward more expensive non-concessional financing.