How Buhari & Zuma Could Slow Africa's Economic Growth - IMF
Africa is a rich continent. And Sub-Saharan Africa is even richer.
But its politics has been an obvious undoing.
It has always been one step forward, three steps backward, especially as far as its economies go.
Now, the International Monetary Fund, IMF is predicting that same growth reversal after economic growth has been forecast to rise to 3.4% in the region next year from 2.6% in 2017.
The IMF warned in a report on Monday that rising debt and political risks in larger economies would weigh down future growth.
Nigeria and South Africa are Africa’s economic heavy weights, south of the Sahara, but both nations have been plagued by political uncertainty linked to the tenure of their leaders.
The IMF said a good harvest and recovery in oil output in Nigeria would contribute more than half of the growth this year.
But political uncertainty loomed large in Nigeria, where President Muhammadu Buhari is afflicted by illness, causing speculation about whether he is well enough to run Africa’s biggest economy.
South Africa has been clouded by the rule of Jacob Zuma, who has battled scandals, including corrupt allegations ahead of his ANC party’s conference in December to elect a new party leader.
“Key downside risks to the region’s growth outlook emanate from the larger economies, where elevated political uncertainty could delay needed policy adjustments and dampen investor and consumer confidence,” the IMF said in a report launched in Harare.
“A further pickup in growth to 3.4% is expected in 2018, but momentum is weak, and growth will likely remain well below past trends in 2019,” the report added.
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