Africa's growth may rise to 7% a year by 2015



Reuters

Published — Tuesday 7 August 2012

Last update 9 August 2012 3:54 am

| نسخة PDF Print News | A A

MOMBASA, Kenya: Africa's growth could rise to 7 percent by the year 2015 Driven by a rush of investors attracted by its drive to improve its infrastructure, the head of the United Nations Development Programme's (UNDP) in Africa said.
Ranked as the poorest continent in the world, Africa has posted strong growth rates of about 5 percent in recent years, second only to Asia, drawing rising inward investment.
Although Africa may have enviable economic growth rates by global standards, they are still not enough to pull its growing population out of poverty.
The IMF revised down its growth forecasts for Africa in 2012 to 5.4 percent, lower than previous forecasts.
Corruption and civil wars are also likely to puncture the momentum in several African countries, officials said at an African leadership meeting in Mombasa.
Many African countries had embarked on rehabilitation and construction of vital infrastructure systems that were quickly attracting investors locally and internationally, Tegegnework Gettu, who heads the United Nations Development Programme's (UNDP) Africa Bureau, told a conference in Mombasa on Tuesday.
"Investment in Africa has gone up to 15 percent in the last five years alone. This is a remarkable achievement. Africa is so far the fastest growing continent globally. We need to keep this spirit. We need to hasten our infrastructural development, because this is the time for Africa," Gettu said.
"At the port in Singapore it takes 8 minutes to clear a ship, in Kenya it takes hours, even days sometimes. Those are the issues we should be dealing with and am glad most African countries including Kenya are on course," he added.
An Economic Report on Africa launched in June in Zambia, by the United Nations Economic Commission for Africa (ECA) and the African Union (AU) reported that Africa was the second fastest growing continent economically in the world after Asia.
The report said Africa's potential required even more investment in human capital and technology, physical infrastructure, agriculture and regional economic integration, among others.
However, the continent's economic growth also faced risks from political crises with the potential to spill over to neighboring states, thus curbing overall growth, Donald Kaberuka, the president of African Development Bank (AfDB) said.
Africa's economy was affected by the Arab uprisings last year, especially in Egypt, leading to a fall in the continent's growth from 5 percent in 2010 to 3.4 percent, in 2011, said Kaberuka.
He said Africa was struggling to enhance its appeal as a business market for the whole world, to have its member states be like other established economies globally, he told delegates, among them retired Nigerian president Olusegun Obasanjo.
"We need to create wealth and protect that wealth from the greed of ourselves. There are investors out there willing to come down to this continent, but we have to make our continent ready for them," he said.

What's happening around Saudi Arabia

JEDDAH: At the weekly Cabinet meeting on Tuesday, Vice Custodian of the Two Holy Mosques Prince Mohammed bin Naif briefed the Cabinet on the talks held by Custodian of the Two Holy Mosques King Salman with President Abed Rabbo Mansour Hadi of Yemen,...
JEDDAH: Private schools have been devising new ways to raise money from parents to circumvent the Education Ministry’s cap on fee increases, a local publication reported here recently.Schools now charge for services that do not require the ministry’s...
JEDDAH: Vice Custodian of the Two Holy Mosques, Minister of Interior and Chairman of the Supreme Haj Committee Prince Mohammed bin Naif has approved the general plan for implementation of Civil Defense works in emergency cases during the current Haj...
RIYADH: The government has shut down a cosmetics factory in Riyadh for using undisclosed raw materials and unhygienic process at its production facility.A team from the Ministry of Commerce and Industry, during a routine inspection, found the plant u...
RIYADH: Recruitment offices here have decided to stop hiring Bangladeshi workers because they claim that a supply crunch has raised costs.Ibrahim Al-Megheimish, a recruitment expert, said that there are too few Bangladeshi workers seeking employment,...
RIYADH: As many as 200 students have enrolled into different courses at the Riyadh-based Saudi Aviation Flight Academy (SAFA) with 70 percent of them being Saudi nationals, said Saleem Bava, head of marketing and admission at SAFA.SAFA offers a mix o...

Stay Connected

Facebook