China’s engagement with Sub-Saharan Africa has expanded greatly over the past decade, to cover all aspects of economic activity. The engagement has spurred growth in the region. Stronger domestic policies will help countries in Sub-Saharan Africa increase the gains from the growing partnership with China.
Rising farm output, remittances, and public investment have supported robust aggregate growth in low-income countries (LICs), with a moderate deceleration expected in 2015. However, fiscal and current account pressures are visible in commodity exporting LICs, many of which have insufficient buffers to absorb the decline in commodity prices. Domestic political tensions or security issues are also weighing on growth in some of these countries.