12 °c
London
Monday, January 30, 2023
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Rising debt dims sub-Saharan Africa economic outlook: IMF

FurtherAfrica by FurtherAfrica
October 31, 2017
in Africa, Angola, Economy, Nigeria, South Africa
Reading Time: 2 mins read
1.1k 11
0
Angola: BNA foreign currency sale drops 62%
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Economic growth is expected to rise to 3.4 per cent in sub-Saharan Africa next year from 2.6 per cent in 2017, the IMF said in a report on Monday, but warned that rising debt and political risks in larger economies would weigh down future growth.

Nigeria and South African are the biggest economies in Africa south of the Sahara, but both nations have been clouded 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 in the region this year while an uptick in mining and a better harvest in South Africa as well as a rebound in oil production in Angola will add to growth.

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 per cent is expected in 2018, but momentum is weak, and growth will likely remain well below past trends in 2019.”

To help maintain growth, countries should diversify from dependence on commodities and oil, implement fiscal reforms to stimulate growth and attract private investment.

The IMF said public debt would rise to 53 per cent of GDP this year from 48 per cent in 2016. More worryingly, most countries were now borrowing from local banks, which could distabilise the domestic financial sector and fuel inflation.

Debt servicing costs were also up, but high debt levels were in particular complicating the economic outlook for six nations, including Zimbabwe, which is gripped by a crunch forex shortage.

“Debt servicing costs are becoming a burden, especially in oil-producing countries … and are expected to absorb more than 60 per cent of government revenues in 2017,” IMF said.

While some countries had made progress in reducing their fiscal deficits, others, like Africa’s most advanced economy South Africa would see the deficit widen.

Source: Oman Tribune

Related

Tags: ANCAngolaeconomic outlookIMFInternational Monetary FundJacob ZumaNigeriaSouth Africasub-Saharan Africa
ScanSendShare432Tweet270Share76Pin97Send
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Africa Data Centres investing US$500M for the development of 10 data centers across Africa
Tech

Raxio to launch data center in Angola early 2024

by Energy Capital & Power
January 30, 2023
Agriculture

IFAD and AfDB on a mission to boost agricultural productivity in Africa

by Farmers Review Africa
January 30, 2023
Energy

South Africa’s Virginia gas project produces first Helium

by Energy Capital & Power
January 30, 2023
Tech

Harnessing 4IR to propel Africa’s economy to address unemployment

by The Exchange
January 30, 2023
Russia’s VTB says in talks to prolong Angola’s $1.5 billion loan to 10 years
Trade

First fertilizer shipment from Russian for Africa arrives in Mozambique

by Club of Mozambique
January 30, 2023
Platform Africa 2023
 
Mozambique eVisa
 
MozParks
 

Translate this page

Read the Latest

Africa Data Centres investing US$500M for the development of 10 data centers across Africa
Tech

Raxio to launch data center in Angola early 2024

by Energy Capital & Power
January 30, 2023
0

Pan-African data center developer and operator, Raxio Group, has announced plans to develop the first carrier-neutral Tier III data center...

Read more

IFAD and AfDB on a mission to boost agricultural productivity in Africa

January 30, 2023

South Africa’s Virginia gas project produces first Helium

January 30, 2023

Harnessing 4IR to propel Africa’s economy to address unemployment

January 30, 2023
Russia’s VTB says in talks to prolong Angola’s $1.5 billion loan to 10 years

First fertilizer shipment from Russian for Africa arrives in Mozambique

January 30, 2023

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
O Económico Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 99,623 other subscribers.
FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?