Growth for Sub-Saharan Africa
According to the International Monetary Fund (IMF), Sub-Saharan Africa will experience mass growth in 2018. This is great news for investors throughout the world. Sub-Saharan Africa is expected to grow by 3.4% in 2018, beating 2017’s rate of 2.6%.
This growth, however, is not as great as it previously was. Sub-Saharan Africa has seen greater growth between 2004 and 2011. Since 2015 there has been a decline in growth, only picking up now.
The IMF report analyses the best opportunities countries are offering, and look towards the potential challenges of 2019, such as economic and political instability. According to the IMF, one-third of the countries listed will grow 5 percent or more in 2018—largely in the eastern and western regions of Africa—however, combined with a decline of per capita incomes in 12 countries which house 40 percent of the region’s population. Reasons for growth relate to specific industries, with agri-business greatly supporting the continent.
Here are some of the countries expected to see growth in 2018:
Following the 2016 election, investors seem pleased with Ghana’s political stabilization and economic changes. In 2018, Ghana is expected to strengthen by 8.9%. Growth in oil production, agri-business and the energy sector will contribute to this.
Ethiopia has an expected growth of 8.5%. Ethiopia has been a good investment for years, so this statistic is nothing new. Reasons contributing to this growth can be seen in the rise of Ethiopian consumers, a rise in the amount Ethiopian consumers spend, and investments that have been successful in the past. The manufacturing and light industry is particular strong in Ethiopia, and will largely benefit investors. Furthermore, agri-business is booming in Ethiopia.
The Francophone country is expected to receive a growth of over 7% in 2018. Power generation is improving, with increasing interest from private investors and development institutions, and accompanies West Africa’s second largest port, a modern airport, and a relatively strong road network.
Senegal is expected to receive a 7% increase in growth in 2018. The country is seeing many opportunities throughout the various sectors, particularly in energy and transport. Small and medium enterprises are growing in popularity throughout the country. Furthermore, the Senegalese government is largely supporting industrialization, manufacturing and agriculture.
Burkina Faso has an expected 6.5% growth in 2018. These numbers are largely a result of extractive industries and public investment, particularly in infrastructure. Governments are currently focusing their energy on entrepreneurship and boosting the business landscape for SME’s. However, Burkina Faso has had difficulty in receiving foreign investment.
Kenya is known as the economic and financial hub of East Africa, and thus a popular business space. 2018 is expected to be a good year for Kenya, following the settling of their election results.
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