Natasha Chamba, Business Reporter
The African Development Bank (AfDB) forecasts a 4 percent growth in Africa’s gross domestic product this year, which is expected to accelerate to 4.1 percent in 2020.
In its report on the prospects for economic development for 2019, the bank stressed that the expected growth prospects of the continent will depend on the further recovery of general economic indicators.
“Growth prospects in Africa remain stable, but improving macroeconomic and employment indicators requires industry to grow faster,” says the report.
“Africa’s overall economic performance continues to recover, and according to forecasts, GDP growth (gross domestic product) will accelerate to four percent in 2019 and to 4.1 percent in 2020.”
The report, which has been published annually since 2003, is the main document of the bank, which contains basic data on economic indicators and prospects for Africa.
The prospects for economic development in Africa make it possible to bridge a significant gap in knowledge about the economies of African countries through regular, thorough and comparative analysis.
The 2019 report focuses on three key areas, namely macroeconomic indicators and prospects for Africa, employment and sustainable dynamism and integration of African economic prosperity.
It is important to note that the report identified five key trade policy actions that could potentially bring Africa’s overall growth to 4.5 percent of its GDP, or $ 134 billion. US per year.
Specific policies include eliminating all applicable bilateral tariffs in Africa, maintaining simple, flexible and transparent rules of origin, eliminating all non-tariff barriers to goods and services and negotiating with other developing countries to reduce their tariffs and non-tariff barriers by 50 percent.
Commenting on the report, ADB Director for Forecasting and Macroeconomic Policy Research, Mr. Hanan Morsi, noted that, despite growing public debt throughout Africa, there was no systemic risk of a debt crisis.
“With the current rate of labor growth, Africa needs to create about 12 million new jobs each year to prevent unemployment from rising.
“There is a need for concerted industrialization efforts that rely on countries,” he said.
Last year, the AfDB, through the African Development Fund, awarded Zimbabwe a grant of $ 4.1 million. The United States, and part of it was used to reform the three state-owned enterprises.