Tuesday, May 08, 2018 06.04 PM / IMF
Sub-Saharan Africa is set to enjoy a modest growth uptick, and decisive policies are needed to both reduce vulnerabilities and raise medium-term growth prospects. Average growth in the region is projected to rise from 2.8 percent in 2017 to 3.4 percent in 2018, with growth accelerating in about two-thirds of the countries in the region aided by stronger global growth, higher commodity prices, and improved capital market access. On current policies, average growth in the region is expected to plateau below 4 percent—barely 1 percent in per capita terms—over the medium term.
Turning the current recovery into sustained strong growth consistent with the achievement of the SDGs would require policies to both reduce vulnerabilities and raise medium-term growth prospects. Prudent fiscal policy is needed to rein in public debt, while monetary policy must be geared toward ensuring low inflation. Countries should also strengthen revenue mobilization and continue to advance structural reforms to reduce market distortions, shaping an environment that fosters private investment.
Slow Recovery Amid Growing Challenges
Sub-Saharan Africa is set to enjoy a modest growth uptick. The average growth rate in the region is projected to rise from 2.8 percent in 2017 to 3.4 percent in 2018, with growth accelerating in about two-thirds of the countries in the region. The growth pickup has been driven largely by a more supportive external environment, including stronger global growth, higher commodity prices, and improved market access.
While external imbalances have narrowed, the record on fiscal consolidation has been mixed and vulnerabilities are rising: about 40 percent of low-income countries in the region are now assessed as being in debt distress or at high risk of debt distress. On current policies, average growth in the region is expected to plateau below 4 percent—barely 1 percent in per capita terms—over the medium term, highlighting the need for deliberate actions to boost growth potential.
Domestic Revenue Mobilization in Sub-Saharan Africa: What Are the Possibilities?
Domestic revenue mobilization is one of the most pressing policy challenges facing sub-Saharan African countries. While the reasons may vary according to country-specific circumstances, there are three aspects of domestic revenue mobilization that make it so important.
Private Investment to Rejuvenate Growth
Private investment in sub-Saharan Africa is low compared with other countries with similar levels of economic development. The low level of private investment is constraining the region’s efforts to improve social outcomes by holding back labor productivity and the resulting gains in real wages and households’ income.
Download Full Report Here
1. Federal Government Economic Reform and Governance Project : Restructuring (2013)
2. Nigeria - State And Local Governance In Nigeria (2002)
3. Re: Commonwealth Head of Government Meeting (CHOGM) 2018
4. Communiqué of the Thirty-Seventh Meeting of the International Monetary and Financial Committee
5. A Window for Reform According to the Fund
6. Transcript of IMF Global Financial Stability Report Press Briefing
7. Global Economy: Good News for Now but Trade Tensions a Threat
8. Nigeria Out of Recession and Looking Beyond Oil
9. Transcript of IMF Press Briefing
10. The IMF’s Good Report, With Qualifications
11. IMF Selected Issues on Nigeria - Mobilizing Tax Revenues in Nigeria
12. IMF Executive Board Concludes 2018 Article IV Consultation With Nigeria
13. IMF Programmes in Africa and the Implications for Creditworthiness
14. Nigeria joins OECD, World Bank to curtail Illicit Financial Flows
15. Afreximbank Urges Use of Factoring to Expand Africa’s Regional Value Chains
16. AfDB updates its African Bond Index, to boost market liquidity
17. Abuja Selected to Host Afreximbank’s 2018 Annual Meetings and 25th Anniversary
18. IMF and BIS—Working Together to Boost Financial Stability
19. A Cyclical Upswing According to the Fund; Forecasts 2.1% Growth for Nigeria
20. #WEF2018:Lagarde tasks Global leaders to guard against complacency