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Sub-Saharan Africa

The outlook for Sub-Saharan Africa in five charts: Striving for recovery

Gerard Kambou's picture

The global economic recovery will see economic conditions improving in Sub-Saharan Africa. Activity is projected to pick up across the region over the forecast horizon, helped by firming commodity prices and gradually strengthening domestic demand. However, in the absence of reforms, potential growth is expected to remain low given demographic and investment trends, weighing on per capita incomes and diminishing the prospects for poverty reduction. Downside risks predominate, including the possibilities that commodity prices could remain weak, global financing conditions could tighten in a disorderly fashion, and that regional political uncertainty and security tensions could intensify. On the upside, a stronger-than-expected pickup in global activity could further boost exports, investment, and growth in the region.
 
Sub-Saharan Africa’s growth outlook is improving 

Growth in Sub-Saharan Africa is projected to pick up to 3.2 percent this year from an estimated 2.4 percent in 2017 and 1.3 percent in 2016, and strengthen gradually. While Angola, Nigeria, and South Africa – the region’s largest economies — will struggle to boost growth, the performance of the rest of the region will be stronger.   
 
Growth

Source: World Bank
Note: shaded areas represent forecasts

Market Access: A Key Determinant of Economic Development in Sub-Saharan Africa

Harry Garretsen's picture

Sub-Saharan Africa (SSA) is home to the world’s poorest countries. The region’s geographical disadvantages are often viewed as an important deterrent to its economic development. A country’s geography directly affects economic development through its effect on disease burden, agricultural productivity or the availability of natural resources. However, the new economic geography (NEG) literature, initiated by Krugman (1991), highlights another mechanism through which geography affects prosperity.

Light Manufacturing in Africa: Targeted Policies To Enhance Private Investment And Create Jobs

Hinh T. Dinh's picture

For many African countries, one important way to create productive jobs is to grow the labor-intensive light manufacturing sector, which would accelerate economic progress and lift workers from low-productivity agriculture and informal sectors into higher productivity activities.  

Sub-Saharan Africa’s low wage costs and abundant material base have the potential to allow light manufacturing to jump-start the region’s long-delayed structural transformation and over-reliance on low-productivity agriculture.  Moreover, as globalization advances and China evolves away from a comparative advantage in labor-intensive manufactured products toward more advanced industrial production, African economies such as Ethiopia and Tanzania are uniquely positioned to take advantage of this opportunity.

Skills, not number of years spent in school, are what count

Vamsee Kanchi's picture

The World Bank recently launched its ‘Education Strategy 2020’ which focuses on achieving ‘learning for all’ over the next decade. The strategy emphasizes looking beyond inputs (classrooms, teacher training, textbooks, computers) to outputs such as cognitive skills and skills for critical thinking (read Elizabeth Kings’ post on this). The strategy emphasizes this approach through the slogan ‘invest early, invest smartly, invest for all.’