World Bank report highlights growth in Africa

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Many African economies ‘appear to have turned the corner and may be moving to a path of faster and steadier economic growth needed to reduce high levels of poverty’ according to the World Bank’s Africa Development Indicators released on the 14th November. In the decade 1995-2005 Africa grew at an average of 5.4%, which is roughly the same rate as the rest of the world, which contrasts sharply with the economic collapse seen over 1975-1995. This masks wide variation, however, with Zimbabwe’s economy contracting by 2.2% in 2005, while Equitorial Guinea’s grew by 30.8%.

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One Response to “World Bank report highlights growth in Africa”

  1. Tony Addison Says:

    Equatorial Guinea illustrates the problems Africa faces in translating growth (a spectacular 30% per annum in this case) into real gains for the majority of people. The country’s growth is almost entirely driven by the oil sector (not for nothing is Equatorial Guinea described as the ‘Kuwait of Africa’) but poverty remains deep, and there is not much confidence in the government’s ability to invest the revenue’s wisely. Norway’s experience in managing its oil fund is a model, and could be emulated across Africa (Angola comes to mind). Botswana’s management of its ample diamond revenues has been outstanding. Otherwise, when commodity prices dip (which they surely will) economies will be as exposed as they were in the 1970s to the chill winds of falling export revenues.

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