Africa economy to grow at 5pc, says bank

The World Bank projects that the Sub-Saharan economy will grow at an average rate of 5 per cent this year on account of increased remittances and private investments.

Already, a third of the region’s countries are growing at 6 per cent, which is above the latest estimates from the global bank.

The growth estimates were released on Monday in the latest edition of Africa Pulse, a twice-yearly analysis of issues shaping the continent’s economic prospects prepared by the bank.

The report, however, notes that in spite of the rising economic growth, poverty and inequality remain high with one out of every two Africans living in extreme poverty.

The Bank estimates that Kenya’s economy will grow at 5.7 per cent in 2013 buoyed by a good show by agriculture and industry.

“Agriculture alone contributes 5.7 per cent to GDP and we expect it to combine with industry to propel the economy this year,” said John Randa, World Bank economist for Kenya.

Remittances to the continent now stand at $33 billion a year and this is expected to increase GDP growth on the continent thus enabling it grow at 5.3 per cent in 2014 and 5.5 in 2015.

The report notes that poverty and inequality remain high while the pace of reduction remains slow with almost one out of every two Africans currently living in extreme poverty.

PEOPLE'S RESILIENCE

“Sustaining Africa’s strong growth over the longer term while significantly reducing poverty and strengthening people’s resilience to adversity may prove difficult because of the many internal and external uncertainties African countries face,” says Makhtar Diop, the World Bank Group’s Vice President for Africa.