• News
  • Sport
  • TV
  • Radio
  • Education
  • TV Licences
  • Contact Us
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION
No Result
View All Result
1
Home Africa

Sub-Saharan Africa’s economy to rebound this year as activity picks up

16 April 2021, 3:44 PM  |
Reuters Reuters |  @SABCNews
The International Monetary Fund forecast growth for the region at 3.4% this year from an estimated contraction of 1.9%.

The International Monetary Fund forecast growth for the region at 3.4% this year from an estimated contraction of 1.9%.

Image: Flickr Gov

The International Monetary Fund forecast growth for the region at 3.4% this year from an estimated contraction of 1.9%.

Sub-Saharan Africa is expected to rebound this year as the continent’s economic drivers pick up momentum after activity was halted by the coronavirus pandemic, despite a slower pace of vaccinations compared with the rich world, a Reuters poll found.

Medians in a Reuters poll taken in the past week showed sub-Saharan Africa was expected to recover in 2021, growing 3.3% after contracting nearly 2% last year.

The International Monetary Fund forecast growth for the region at 3.4% this year from an estimated contraction of 1.9%.

Rafiq Raji, associate with the Africa programme at the Centre for Strategic and International Studies, expects a recovery as economies ease restrictions and activity in crucial sectors such as agriculture, manufacturing, and tourism picks up.

However, “slow vaccine rollouts and rising COVID-19 cases are expected to weigh on the recovery”, said Raji.

The World Health Organisation’s Africa office said on April 8 that Africa had given fewer than 2% of vaccinations administered globally.

Growth was expected this year from all the major economies with Angola at 1.6%, Ghana at 4.9%, Kenya at 5.1%, 2.0% for Nigeria, South Africa at 3.7% and 2.0% for Zambia.

South Africa, the continent’s most industrialised economy, together with Angola and Nigeria contribute around 50% to sub-Saharan Africa’s economic engine. Much healthier commodity prices are likely to buoy growth there, economists said.

Still, economists warned some growth rates were calculated from a very low base and might not be sustainable in the following two years, particularly in South Africa where growth is expected to slow to 2.1% and maintain that pace.

Thanks to a diversified continent, growth for the sub-Saharan Africa region (SSA) is likely to stick to 3.3% percent next year and grow 4.1% the following year.

“SSA inflation expectations are expected to remain high in 2021, owing to increased spending, higher commodity prices and country-specific factors. Still, the average SSA inflation rate is expected to moderate to about 10% in 2021, from about 11% in 2020,” said Raji.

Inflation in South Africa is likely to moderate, seen just below the midpoint of the central bank’s 3%-6% comfort level this year – and the following two years – despite risks skewed more to the upside over the coming year.

“Most of the upside risks to the inflation outlook in South Africa stem from exogenous forces – in particular fuel prices,” said Jeffrey Schultz, economist at BNP Paribas.

The South African rand has been resilient in past months, helping to keep interest rates stable.

Economists expected security challenges in Nigeria — Africa’s biggest economy — to likely continue to make food expensive, owing to slowed agricultural activity and logistical issues.

Hard currency shortages and monetary financing also pose significant risks to the Nigerian inflation outlook.

Share article
Previous Post

Montana accuses Zondo Commission of being biased

Next Post

Mpumalanga Traffic trainees cry foul following suspension of the programme

Related Posts

[File Image] Minister Mmamoloko Kubayi.

Kubayi to represent SA at UN Habitat Assembly on sustainable urbanisation in Kenya

5 June 2023, 10:09 AM
A supporter of Senegal opposition leader Ousmane Sonko walks near a burning barricade during clashes with security forces after Sonko was sentenced to prison, in Dakar

Senegal government cuts mobile internet access amid deadly rioting

5 June 2023, 6:06 AM
A member of  Lesotho's military looks on as he stands guard in front of an armed personnel carrier at the entrance of the army barracks in the capital Maseru.

Lesotho’s youth development boot camp aims to tackle crime, ill-discipline

4 June 2023, 10:34 PM
File image: 179 refugees and asylum-seekers were evacuated on the first evacuation flight to Niger in 2023.

Eastern Libya forces stage mass deportation of Egyptian migrants

4 June 2023, 5:06 PM
A man walking as smoke rises above buildings after aerial bombardment, during clashes between the paramilitary Rapid Support Forces and the army in Khartoum North, Sudan, May 1, 2023.

Saudi foreign ministry, U.S. call on Sudan factions to agree to new ceasefire

4 June 2023, 4:01 PM
Guinea Bissau President Umaro Sissoco Embalo speaks at the Peace Forum in Paris, France November 11, 2022.

Guinea-Bissau holds legislative elections amid political deadlock

4 June 2023, 8:21 AM
Next Post
Traffic oficers

Mpumalanga Traffic trainees cry foul following suspension of the programme

Most Viewed

  • 24hrs
  • Week
  • Month
  • Deadline for Zimbabwean Exemption Permits draws near
  • Eastern Cape ActionSA raises eyebrows over qualifications of senior officials
  • Durban’s N2 road, Spaghetti Junction closed due to cleanup operations
  • Limpopo district embroiled in fraudulent travel claims
  • Five primary school children killed in Mitchells Plain crash
  • Dr Nandipha’s looks during court appearances under the spotlight
  • Deadline for Zimbabwean Exemption Permits draws near
  • Reserve Bank expected to increase repo rate on Thursday
  • Zimbabwe receives 18 helicopters from Russian Federation
  • Eastern Cape ActionSA raises eyebrows over qualifications of senior officials
  • Eskom to suspend rolling blackouts on Monday morning
  • VIDEO | Judge Loubser dismisses Dr Nandipha’s urgent application with costs
  • SAFTU calls for arrest of Eskom executive suspected of sabotage
  • MUT University expresses shock at the murder of one of its lecturers
  • Another Limpopo tavern shooting claims 1 life, 5 others wounded

LATEST

Dr Nandipha Magudumana appearing before the Bloemfontein Magistrate's Court remotely on May 26, 2023.
  • South Africa

NPA, Home Affairs welcome court’s decision in Dr Magudumana’s case


  • Business

Private sector activity falls for 3rd consecutive month due to power cuts, inflation


The entrance of the University of Fort Hare.
  • South Africa

12 University of Fort Hare students arrested in connection with campus fire


The Lagos-based startup also received investment from existing Chinese investor Tencent.
  • Business

Tencent-backed Helium Health raises $30 mln to fund Africa expansion


Protest on the N1 North / N12 East split at the Diepkloof I/C.
  • South Africa

Police monitoring protesters on N1 north/N12 split near Diepkloof


[File Image]: Public Protector Busisiwe Mkhwebane addressing the media.
  • Politics

Parliamentary inquiry into Mkhwebane’s fitness to hold office delayed until Wednesday


Weather

  • About the SABC
  • Contact Us
  • Jobs
  • Advertise
  • Disclaimer
  • Site Map

SABC © 2023

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION

© 2023

Previous Montana accuses Zondo Commission of being biased
Next Traffic oficers Mpumalanga Traffic trainees cry foul following suspension of the programme