The World Bank has projected economic growth in Sub-Saharan Africa to fall below expectation in 2016.
According to Africa’s Pulse, the bi-annual analysis of economic trends in the continent, growth is expected to be 1.6percent in 2016 — lower than the 2.4 per cent forecast of the world bank in June.
The bank noted in the report that African countries including Nigeria which depend on commodities are not serious with the diversification of their economies.
Shocks from collapsed commodity prices and tighter financial conditions, exacerbated by domestic pressures arising from policy uncertainties, adverse weather conditions, and political and security concerns, have continued to weigh on activity in the region,” the report said.
The projected slip in growth is nearly half of the 3per cent growth recorded in 2015 and the uninspiring economic fortunes of Nigeria and South Africa, the continent’s largest economies, is said to be largely responsible for the slowed growth.
In the midst of the gloomy outlook, a turnaround and appreciable progress is expected in the coming year.
By 2017, a 2.9 per cent growth is estimated and a further upsurge is expected in 2018 as African economies will expand by 3.6per cent says the report.
According to the growth performance ratio per country – the economies of Nigeria, Botswana, South Africa, Chad, Madagascar, Angola, Liberia Sierra Leone, Cape Verde and The Gambia – are performing badly.
Only four African economies — Tanzania, Ethiopia, Burundi, Mozambique — are deemed well-performing.