When it comes to economic success, Tanzania offers a model for the rest of Sub-Saharan Africa. Growth has averaged 6.5 percent per year over the past decade, and between 2007 and 2012 nearly a third of the poorest 40% of the population rose out of poverty. However, the progress towards improving water and sanitation access for all has not kept a similar pace.
A new report by the World Bank, ‘Reaching For The SDGs’ was launched by the Honorable Eng. Isack Kamwelwe, Minister of Water and Irrigation on March 20 in Dar es Salaam. In her welcome address, Ms. Bella Bird, Country Director for Tanzania, Malawi, and Burundi said, “adequate WASH is a crucial component of basic human necessities that allow a person to thrive in life”. The report shows how water and sanitation services need to advance substantially in order to achieve much needed improvements in health and wellbeing that will help the country fulfill its true potential. Progress in this area still has a long way to go.
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.
Source: World Bank
Note: shaded areas represent forecasts
There is a growing perception that spatial disparities in development indicators within countries are becoming more pronounced. Sub-national data are needed to inform policy makers on such matters. However, data on the sub-national level is less frequent (curated in a global setting) because sub-national administrative areas change frequently.
In country after country in Sub-Saharan Africa, new discoveries of oil, natural gas and mineral deposits have been making headlines every other week it seems. When Ghana’s Jubilee oil field hits peak production in 2013, it will produce 120,000 barrels a day. Uganda’s Lake Albert Rift Basin fields could potentially produce even greater quantities. Billions of dollars a year could flow into Mozambique and Tanzania thanks to natural gas findings. And in Sierra Leone, mining iron ore in Tonkolili could boost GDP by a remarkable 25 percent in 2012.
My strong hope is that all the people living in these resource-rich African countries also get to share in this new oil and mineral wealth. So far, with one of few exceptions being Botswana, natural resources haven’t always improved the lives of people and their families. From what I see on my constant travels to the continent, economic growth in most resource-rich countries is not automatically translating into better health, education, and other key services for poor people.
Many resource-rich countries tend to gravitate towards the bottom of the global Human Development Index, which is a composite measure of life expectancy, education and income.
One strikingly effective way to make sure that all people, especially the poorest, share in the new minerals prosperity is through safety nets and social protection programs. These are designed to protect vulnerable families and promote job opportunities among poor people who are able to work. This in turn makes communities stronger and more secure, while reducing painful inequalities between people.
Social protection programs are already central to poverty-fighting, higher growth national strategies across Africa, and have played a significant role reducing chronic poverty and helping families become more resilient in the face of setbacks such as unemployment, sudden illness, or natural disasters such as droughts or floods. These programs have also allowed families to invest in more livestock or grow more food, and increase their earnings.
- Labor and Social Protection
- Social Development
- Agriculture and Rural Development
- Sub-Saharan Africa
- social safety nets
- social protection
- Human Development Index
- cash transfers
Last week, the U.N. Conference on Trade and Development (UNCTAD) released its semi-annual report on FDI flows, which reflected generally dismal results: global FDI declined by 8 percent, with a 5 percent decrease for the developing world in particular. I found it interesting that South Africa’s significant decline in FDI seemed to catch a good deal of media interest. Yes, the continent’s darling and the usually one of the highest recipients of FDI saw a drastic drop (by 43%); admittedly this deserves more than a glance. But I wonder why Finland and Ireland’s numbers, at 96.2 and 42.8 percent respectively, didn’t make much news. South Asia’s inflows also fell by 40 percent as a result of declines across nearly all countries in the subcontinent. In India, inward FDI fell from US$18 billion to US$10 billion. Why South Africa? In my opinion, the flow of investment to sub-Saharan Africa is often reported as a sign that the doors of the last frontiers are being approached.
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.
New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.
Source: Media Map Resource
We know that water and sanitation services do not always recover their costs from tariffs. So, if communities or governments are to maintain the infrastructure properly, they depend on the public budget. And those expenditures must be predictable and transparent.To take a closer look at this issue, the World Bank analyzed public expenditure on water supply and sanitation from fifteen countries in Sub-Saharan Africa, assessing how much public money was budgeted for the sector and on what it was spent.
In my previous blog entry, I mentioned the expected growing engagement between Brazil and Sub-Saharan African countries in 2012, to exchange knowledge and further economic and social development.
- Sub-Saharan Africa
- south-south partnerships
- slave trade
- Private Sector Development
- Nutrition and Population
- Latin America & Caribbean
- latin america
- international trade
- Information and Communication Technologies
- Agriculture and Rural Development
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.