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How Africa can restore robust growth through trade and aid

Nancy Lee's picture
 
Workers construct a culvert along the Nampula – Rio Ligonha Road in Northern Mozambique as part of the Millennium Challenge Corporation's Rehabilitation and Construction of Roads Project.
Photo credit: MCC

The narrative of "Africa Rising" has recently been tempered by uncertainties and risks in the global environment. Following two decades of growth averaging five percent, many of Africa’s economies, especially the commodity exporters, have cooled. Earlier this month, the International Monetary Fund cut its 2016 growth forecast for sub-Saharan Africa to only 1.4 percent.

Like Asia, Africa’s progress in reducing poverty rates has been driven by sustained growth, but population growth has prevented a decline in poverty. Extreme poverty is now increasingly concentrated in sub-Saharan Africa, and in 2012, nearly 400 million people in the region were living on less than $1.90 a day.