Sub-saharn Africa Economy to Grow Higher Next Year

By Eddyson Lugangwa Posted 18 October 2006 @ 09:42 am EET     Print     Reprint     E-Mail     Comments

Dakar (IBTimes.com) - Sub-Saharan African is set for higher economic growth in 2007, a positive sign but a small step toward pulling the continent's people out of poverty, an International Monetary Fund official said Tuesday.

IMF assistant director for Africa Sanjeev Gupta said high prices for a range of commodities are driving sub-Saharan Africa's economies towards 5.9 percent growth in gross domestic product a full percentage point increase over 2006 estimates.

The larger 2007 growth reflects high oil prices, along with surging demand for diamonds, copper and other commodities. Meanwhile, inflation is down in many countries and private investment is increasing, according to an IMF report on the region's economic outlook presented Tuesday in Senegal's capital of Dakar.

Still, "the region has to grow much faster to reduce poverty," Gupta said in an interview. He noted that population growth means that even with more money coming in to many African populations, many citizens are seeing a smaller and smaller share.

GDP growth per person is estimated at 2.8 percent for sub-Saharan Africa this year, far below the 5 percent the IMF estimates is needed to pull Africa's citizens out of poverty. Much of the economic growth comes from high prices for oil, a commodity that has brought riches to oil giants like Nigeria but also fomented instability and power grabs.

Sub-saharan Africa's eight oil exporters; Angola, Cameroon, Chad, Congo, Ivory Coast, Equatorial Guinea, Gabon and Nigeria should see 10 percent growth, according to the report.