AfDB: Political Instabilities Hurting Africa’s Growth
With Africa’s population set to triple by 2050, modernising local economies will be vital to make the continent more competitive and to increase people’s living standards, according to the African Economic Outlook 2015, released at the African Development Bank Group’s 50th Annual Meetings on Monday.
Surpassing most regions in spite of the global financial crisis, African economies will grow by 4.5 per cent in 2015 and may reach 5 per cent in 2016, converging with Asia’s current growth rates.
However, lower oil and commodity prices, uncertain global conditions, the consequences of the Ebola outbreak in West Africa and domestic political uncertainties could delay an expected return to pre-2008 levels of growth.
Foreign direct investment (FDI) is forecasted to reach USD 73.5 billion in 2015, underpinned by increasing greenfield investment from China – which remains Africa’s largest trade partner after the European Union.
The report also shows an increase in intra-African and outward FDI flows. South African companies are the leading investors on the continent.