Chronicle Editor
Natasha Chamba, Business Reporter
THE African Development Bank (AfDB) predicts a four percent growth in Africa’s Gross Domestic Product this year which is expected to accelerate to 4, 1 percent in 2020.
In its economic outlook report for 2019, the bank highlighted that the continent’s envisaged growth prospects would be driven by the continued recovery of the general economic performance.
“Africa growth prospects remain steady, but improved macroeconomic and employment outcomes require industry to lead growth,” reads part of the report.
“Africa’s general economic performance continues to recover and GDP (Gross Domestic Product) growth is projected to accelerate to four percent in 2019 and 4,1 percent in 2020.”
The report which is published annually since 2003 is the bank’s flagship document providing headline numbers on Africa’s economic performance and outlook.
The African economic outlook bridges a significant knowledge gap with respect to African economies through regular, rigorous, and comparative analysis.
The 2019 report focuses on three key areas which are Africa’s macroeconomic performance and prospects, employment and firm dynamism and integration of Africa’s economic prosperity.
Significantly, the report identifies five key trade policy actions that could potentially bring Africa’s total gains to 4,5 percent of its GDP or $134 billion a year.
The policies identified include eliminating all applied bilateral tariffs in Africa, keeping rules of origin simple, flexible and transparent, removing all non-tariff barriers on goods and services, and negotiating with other developing countries to reduce their tariffs and non-tariff barriers by 50 percent.
Commenting on the report, AfDB director of macroeconomic policy forecasting and research Mr Hanan Morsy noted that despite the rising national debts across Africa, there was no systemic risk of debt crisis.
“At the current rate of labour force growth, Africa needs to create about 12 million new jobs every year to prevent unemployment from rising.
“A concerted industrialisation effort that builds on countries is required,” he said.
Last year, AfDB, through the African Development Fund extended a $4,1 million grant to Zimbabwe and part of it was used to reform three State-owned enterprises.
— @queentauruszw
Online Reporter