Africa’s growth forecast to accelerate
IOL Business/ Bloomberg News - May 28th, 08:34
Johannesburg - Africa’s economic growth is expected to accelerate this year and next, led by oil and mining projects in West Africa and a resurgence in foreign direct investment, according to the African Development Bank.
Gross domestic product, excluding Libya and Somalia, will rise 4.5 percent this year from 4.2 percent in 2012, the bank said in its annual African Economic Outlook released in Marrakech, Morocco. Expansion will reach 5.2 percent in 2014.
Foreign direct investment may rise more than 10 percent to $56.6 billion this year, near the record set in 2008, while portfolio inflows are set to increase to a record $26.2 billion.
“The main engines of growth are expected to be expansion in agricultural production, robust growth in services and a rise in oil production and increased mining activity mainly in resource-rich nations,” according to the report.
“The main short-term challenge for the continent is to consolidate stable macroeconomic conditions in the face of a more volatile economic environment.”
The estimate leaves out Libya, because the revolution there has distorted economic growth, and Somalia, the bank said.
Somalia’s new government is seeking to rebuild its economy after more than 20 years of anarchy and 15 failed attempts at creating a stable central administration.
Growth in the world’s poorest continent will be buoyed by rising domestic demand and increased output of commodities, offsetting a slowdown in China and another possible recession in Europe, according to the report.
West Africa will help anchor growth, the bank said. The region encompasses Ivory Coast, the world’s largest cocoa producer, and Nigeria, the continent’s biggest oil producer. The outlook is weaker for southern and northern Africa, it said.
“In southern Africa, growth will remain blighted by the slow recovery in South Africa,” the bank, based in Tunis, said.
“In North Africa, the slow pace of transition to democracy is likely to continue to affect the economies of the region, despite the strong recovery in Libya’s oil production.”
While some commodity prices have fallen this year, the benefits are still flowing for exporters of natural resources, it said.
The Standard & Poor’s GSCI gauge of 24 commodities has fallen 3.4 percent so far this year.
“Commodity prices remain well elevated to support growth of resource-rich countries,” the report said.
Inflation has been helped by easing commodity prices, the bank said. Africa’s inflation rate will drop to 7.4 percent in 2013 from 9.1 percent last year, although consumer-price growth remains above-target for many countries, limiting scope for central banks to lower borrowing costs, the bank said.
“Monetary policies in many African countries will have to continue to strike a balance between controlling inflation and supporting economic growth,” the bank said. - Bloomberg News
© Independent On-line 2013. All rights reserved
Customers reward a better, stronger and clearer Pick n Pay
23/10/2013 - 10:54
In an extremely competitive market, customers have responded positively to decisive action by Pick n Pay to improve the shopping trip. In the first six months to 01 September 2013, the company delivered an improved financial performance over the previous period, growing Group till sales (owned and franchise stores) by 8.1%.
Dunavant diversifies to buying maize, soya beans, Zambia
16/10/2013 - 11:30
NWK Agri-services, formerly Dunavant Zambia, has diversified its commodity buying opportunities from cotton to soya beans and maize.
Asian bacteria threatens Florida oranges
14/10/2013 - 09:13
Washington - Citrus production in Florida, the world's second largest orange juice supplier after Brazil, is being threatened by a bacteria from Asia that has scientists racing for a remedy.
Ghana’s public debt is fourth highest in Africa, World Bank
11/10/2013 - 09:02
Ghana has been ranked as the fourth country in Africa with the highest public debt in relation the total value of the economy.
Climate threat to maize farmers
02/10/2013 - 08:55
Cape Town - Climate change poses a major threat to South Africa's maize production and food security, says the Agricultural Research Council.