Business

‘Sub-Saharan economy to grow by 4 %’

MATHEWS KABAMBA, Lusaka
THE World Bank has cited lower commodity price and volatile global financial conditions as some of the factors that are likely to take toil on sub-Saharan Africa in 2015, as growth focus is anticipated to remain at 4.6 percent.
According to the latest World Bank Group’s Global Economic Prospects (GEP), it notes that sub-Saharan African growth prospect of 2015 is expected to be maintained at 4.6 percent.
“The outlook is subject to significant downside risks arising from a renewed spread of the epidemic, violent insurgencies, lower commodity prices and volatile global financial condition,” the report stated.
The report said growth in sub-Saharan Africa only picked up moderately in 2014 to 4.5 percent, reflecting a slowdown in several of the region’s large economies, notably South Africa.
However, Zambia’s gross domestic product (GDP) rate was recorded at six percent, and it is expected to escalate to an average of seven percent between 2015-17.
The bank further said, “Following on another disappointing year in 2014, developing countries should see an uptick in growth this year boosted by soft oil prices, a stronger United States economy, continued interest rates and receding domestic headwinds in several large emerging markets.”
Commenting on the report, World Bank Group President Jim Yong Kim said, “In this uncertain economic environment, developing countries need to judiciously deploy their resources to support social programs with a laser-like focus on the poor and undertake structural reforms that invest in people.
“It’s also critical for countries to remove any unnecessary roadblocks for private sector investment. The private sector is by far the greatest source of jobs and that can lift hundreds of millions of people out of poverty.”

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