African economies forecast to defy recession
JOHANNESBURG, (CAJ News) – GLOBAL experts are optimistic about Africa’s future despite the global economic outlook remaining gloomy.
Among the factors influencing the positive projections include fundamental economic reforms, constantly improving governance, more robust macroeconomic policy frameworks and a better understanding of the requirements for savings and business investments.
As a result, while the continent’s unprecedented growth over the past decade is slowing down, it is nonetheless expected to remain solid and sustained over the medium term.
From an economic point of view, African economies on average are on track to achieve 3,8 percent gross domestic product growth this year, albeit with large variations.
Countries in East Africa, for example, are growing at around 6 percent and several other countries across the continent are also doing well.
On the back of that, financial sector leaders and policymakers from across Africa and global market participants active on the continent recently met during the Institute of International Finance’s (IIF) Fourth Annual Africa Financial Summit, hosted by FNB in Johannesburg, to examine the continent’s economic progress and explore options for policymakers and opportunities for investors in this dynamic region of the world.
The results of the discussions at the summit converged on a few broad themes and policy guidelines, although it was not the intent of the Summit to issue recommendation.
Experts recognized the headwinds buffeting African economies, such as the slump in commodity prices, tightening liquidity in global financial markets, volatility in exchange rates and decreased appetite for emerging markets assets.
It was proposed therefore that Africa must look for new growth opportunities, such as in manufacturing and in financial services, in order to achieve sustainable growth.
Technology was said to have a huge role to play in the growth of financial services in Africa, as witnessed in deepening financial inclusion on the back of mobile telecommunications networks.
Experts proposed Africa must continue to give highest priority to investment in infrastructure and power as well as overcome challenges for mobilizing domestic as well as external financial resources for investment in Africa should also be a key priority.
– CAJ News
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