Growth in Africa: Best Performance in Years Africa is currently experiencing its best economic performance in many years. The continent’s economies are benefiting from global expansion, notably through higher demand for commodities at higher prices; improved domestic macroeconomic management; and the easing of conflicts in many countries. While serious problems persist – including the humanitarian catastrophe in western Sudan, the political hardening in Zimbabwe, and conflicts in Côte d’Ivoire – prospects for much of Africa appear to remain more favourable than they have been for many years.
The aggregate eight-year high of 5.1 per cent growth in 2004 masks striking divergences at country levels. Surges in oil and metal prices, the dollar depreciation, record low cotton prices, and a locust plague in the Sahel region, affected individual countries differently.
The global economic recovery and the general rise in global commodity prices gave a positive impetus to African oil and metal exports. Some oil exporters also benefited from new oil fields in Southern and Central Africa (Angola, Chad and Equatorial Guinea). However, West African countries are facing losses from lower prices for cotton and cocoa.
The sharp euro appreciation has adversely affected the Franc Zone countries, while the strengthening of the rand has affected the Southern African economies whose currencies are pegged to it.
Africa benefited from the rise in official aid in the last three years, although much of the increase was due to emergency assistance and debt relief. Good performers, such as Ethiopia, Mozambique and Tanzania, accounted for the bulk of aid; conversely, aid to Zimbabwe and the Central African Republic has decreased considerably, reflecting mounting governance problems. Despite rising aid levels, the Millennium Development Goals (MDGs)
remain underfinanced (by more than $40 billion, overall)
and progress on most of the eight goals set for 2015 remains limited (see table).
Favourable weather conditions in Eastern, Central, and Southern African translated in a rebound in agricultural production (mainly in Ethiopia, Malawi, Zambia and Rwanda). In contrast, agricultural output in West Africa suffered from locust infestation, although its impact was limited by early treatment of infested areas.
Prudent macroeconomic policies have helped economic recovery. Inflation has reached overall historical lows, despite increasing oil prices. Low world-wide inflation benefited countries with pegged exchange rates, such as CFA franc countries, while prudent monetary policy played a key role in an increasing number of floating-rate countries. The windfall gains from commodity prices have improved public finances in oil-exporting countries.
African Economic Performance in 2004:
A Promise of Things to Come?
by Nicolas Pinaud and Lucia Wegner Policy Insights No. 6 is derived from the African Economic Outlook 2004/2005, a joint publication of the African Development Bank and the OECD Development Centre
To learn more about this author, visit OECD Development Centre's Website.
Like this article? Share it with your friends
 |
Related Businesses - Evan Elite Authors |
|
George Ludwig
George Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance.
Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson.
His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more.
George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|
The Evan Elite Authors program is currently in beta phase. For details please contact us.
|
|
|
OECD Development Centre
(Visit OECD's Website)
Created in 1962 by the Organisation for
Economic Co-operation and Development
(OECD) in Paris, the Development Centre is
an interface between OECD Member countries
and the emerging and developing
economies.
The Development Centre occupies a unique
place within the OECD and in the
international community. It is a forum
where countries come to share their
experience of economic and social
development policies. The Centre
contributes expert analysis to the
development policy debate. The objective
is to help decision makers find policy
solutions to stimulate growth and improve
living conditions in developing and
emerging economies.
|
|
|
OECD Development Centre's
Complete
List Of
African-Accounts
Articles
|
|
If you enjoyed this article, get OECD Development Centre's Complete List of African-Accounts Articles For FREE!
|
|
|
|
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}
