ACG sees sub-Saharan Africa economic growth rebounding

Apr 29, 2010

The African Consultative Group (ACG) expects economic growth to climb to 4.75 per cent across sub-Saharan Africa in 2010.

During 2009 growth averaged two per cent in the continent, but the body said following a meeting at the headquarters of the International Monetary Fund (IMF) that performance will improve this year. "Prospects for the region are for a recovery that is increasing in strength," a joint statement from Samura Kamara, Minister of Finance of Sierra Leone and Chairman of the African Caucus, and Managing Director of the IMF Dominique Strauss-Kahn said.

At the meeting, the body noted economic diversification in African countries is being held back by low levels of physical capital and raised the issue of increasing public investment in order to meet and sustain high growth rates after the global economic downturn. It identified efficiency, investment phasing and debt sustainability as three areas where improvements need to be made if public investment is to aid growth.

The IMF recently predicted Ghana's economy will see a "modest upturn" during 2010 following a poor 2009, when expansion of between three and four per cent was expected.