Fastest-Growing Economies in the World Now in Africa

The World Bank has reported that Sub-Saharan African economies will experience faster growth in 2012 as still high commodity prices and investments in mining offset the drag from weak exports to Europe.

The World Bank estimated growth in sub-Sahara Africa rising 5.2% in 2012, which will be an acceleration from the 4.9% expansion logged in 2011.
This comes the Bank’s twice-yearly analysis of the issues shaping Africa’s economic prospects.

That would take growth in the regional economy just above the pre-crisis average of 5 %. The estimate is a touch below the International Monetary Fund’s forecast for 5.4 % growth this year.

“African economies continue to show resilience and some of the fastest-growing economies in the world are now in Africa,” said Obiageli Ezekwesili, the World Bank’s vice president for Africa.

“The urgent agenda remains sustaining the macroeconomic reforms while accelerating the structural reforms that will deliver the right quality of growth that creates jobs and raises incomes on the continent.”

Dr. Hussein Abdul the Director of Action Aid Nigeria says that African Leaders celebrate growth yet this doesn’t translate into poverty reduction. He says Poverty levels are still high and that there has been minimal transition
Hussein blames World Bank Economists saying they rely mostly on figures and never take a look at People on gorund.

However, the Bank noted that the regional economy was vulnerable to commodity price declines, given the cooling in Chinese growth. Commodities account for 70% of sub-Saharan Africa’s exports.

But the region has become a magnate for capital inflows as the debt crisis in Europe forces investors to find other places for their money.

According to the Bank, capital flows to sub-Saharan Africa rose by $8 billion in 2011 to $48.2 billion. Foreign direct investment, which accounts for about 77% of all capital flows to the region, contributed to about 83% of the increase.

“Recent foreign direct investment to the region has been spurred by increased global competition for natural resources, higher commodity prices, robust economic growth and a fast rising middle class,” says the Bank.