Region’s economic growth third fastest

More than half the countries in Sub-Saharan Africa are estimated to have realised economic growth rates of not less than 5 per cent, a report shows.

The International Labour Organisation (ILO) “Global Employment Trends 2014 Report” also shows that only two countries – the Central African Republic and Equatorial Guinea – registered negative growth.

It notes that the current economic outlook indicates that regional growth rates of at least 5 per cent are sustainable, provided that global economic conditions do not weaken exports or reduce inflows of investment and aid.

“Both investment and aid are important as different groups of countries tend to benefit from these financial flows,” adds the report.

Ghana

The report says high rates of growth contributed to an improvement in some labour market indicators with countries like Ghana realising an average annual economic growth rate of 6.8 per cent during the 2001–12 period.

It adds that the growth has continued to be solid in Sub-Saharan Africa with GDP year-on-year growth in 2013 being estimated to be 4.8 per cent.

“This is slightly below the growth rates seen in recent years but it is still the third fastest regional growth rate after East Asia and South-East Asia and the Pacific,” notes the report.

It adds that growth in Sub-Saharan Africa is also high compared to the 1990s. From 1991 to 2000, the regional economic growth averaged 2.3 per cent annually. During the 200-12 period, it shot to 5.7 per cent.

“The average unemployment rate in Sub-Saharan Africa as a whole during the 2001–12 period is estimated to be half a percentage point below the 1991–2000 rate,” it adds.

The report says there is a similarity with the development of Sub-Saharan Africa as the regional vulnerable employment rate decreased by only 2.3 per cent from 2001 to 2012.

“All other developing regions show a larger decrease in the vulnerable employment rate despite lower rates of economic growth than were experienced in Sub-Saharan Africa,” notes the report.

The report adds that the vulnerable employment rate in Sub-Saharan Africa is estimated at 77.4 per cent in 2013 – the highest in all regions.

“Facing underdeveloped or non-existent social protection systems, a large share of the working-age population in the region is obliged to work to provide for their families,” adds the report.

The report also says that as a consequence, the labour force participation rate across all labour market groups is estimated at 70.8 per cent in 2013, and Sub-Saharan Africa is the only region in which the male adult labour force participation rate is projected to rise in 2014 and 2015.

“In many developing economies, the manufacturing sector has served as an engine of paid employment creation but by and large, this has not happened in Sub-Saharan Africa,” adds the report.