African Economic Improvements

Offshore drilling sites on West African coast.

Offshore drilling sites on West African coast.

(Reuters) – Sub-Saharan Africa’s economic growth is expected to increase to six percent in 2014, from five percent this year, supported by investment in infrastructure and production capacity, the International Monetary Fund (IMF) said on Thursday.
The IMF released a report last Thursday concerning the economic state of the continent. Despite the report being released on the eve of Halloween, there was not much to fear, for the IMF has positive news regarding the economic state of the region. The report stated that in 2014 there will be a 2-3% growth in the South African economy. Although the South African government was impacted by the 2008 Global financial crisis, it has experienced steady growth over the years and serves as a model for other countries in Africa. The IMF also stated that the Sub-Saharan region of Africa will benefit from a 1% growth due to recent investments in several sectors.
“The main factor behind the continuing underlying growth in most of the region is … strong domestic demand, especially associated with investment in infrastructure and export capacity in many countries.”
Due to private investment in specific areas of mineral and resource exportation, from the Sub-Saharan region, several under-developed countries like Ivory Coast, The Democratic Republic of Congo, and Sierra Leone have contributed and will continue to contribute to the continent’s positive economic growth.
There are still undeveloped and low-income producing countries in Africa; however, this report allows for further investment in the continent. Investment that has been dominated by Chinese entrepreneurs.

By F.A. Kamara

Reuters IMF