ECONOMY

Investment inflows, spending spur Sub-Saharan GDP growth rise

A gas processing plant - opened in 2004 - located in the Inhambane province of Mozambique. (File photo: Reuters)

Growing investment in Africa’s natural resources and rising household spending will accelerate economic growth in Sub-Saharan Africa to 5.2 percent in 2014 from 4.7 percent in last year, the World Bank said on Monday.

New oil and gas discoveries in countries including Angola, Mozambique and Tanzania underpinned rising capital inflows into the region, though a chronic energy deficit and poor transport links continued to curb growth levels regionally, the bank said.

“Poor physical infrastructure will...continue to limit the region’s growth potential,” Makhtar Diop, the World Bank’s vice president for Africa, said in a statement.

More spending needed

“Significantly more spending is needed in most countries in the region if they are to achieve a lasting transformation of their economies.”

In its Africa Pulse report, the Washington-based body said capital flows into Sub-Saharan Africa rose to an estimated 5.3 percent of regional Gross Domestic Product (GDP) in 2013, outpacing the global developing-country average of 3.9 percent.

Net Foreign Direct Investment into the region jumped 16 percent to a near-record $43 billion (25 billion pounds) as foreign firms exploited hydrocarbon finds, including those in eastern Africa where massive gas finds have been made in Tanzania and in Kenya where commercial quantities of oil have been struck.

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Last Update: Monday, 7 April 2014 KSA 18:32 - GMT 15:32
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Investment inflows, spending spur Sub-Saharan GDP growth rise
New oil and gas discoveries in countries including Angola, Mozambique and Tanzania underpinned rising capital inflows into the region
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