Sub-Saharan Africa: Outlook and challenges
Published: June 2011
Sub Saharan Africa’s (SSA’s) growth bounced back to 5% in 2010 following a slowdown to 2.8% in 2009 because of the GFC. Moreover, SSA’s 5-plus growth rate is sustainable. Improvements in domestic fundamentals due to better economic management and improved political stability have been mainly responsible for the turnaround in the past decade. The impact of high commodity prices, reorientation of trade to fast growing Asian countries, advances in new technology, especially mobile telephony, will continue to be growth drivers. SSA’s good growth prospects will be underpinned by domestic demand and a surge in Asian demand for some time. However, growth could be higher still, more durable and job-creating if some of the region’s key constraints – infrastructure, governance and skills – were addressed.