Ethiopia to register highest growth in the region

Tuesday January 16 2018

Workers at a textile factory in Addis Ababa, Ethiopia.

Workers at a textile factory in Addis Ababa, Ethiopia. High commodities prices will spur economic growth in region. PHOTO FILE | AFP 

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Growth in sub-Saharan Africa is expected to accelerate to 3.2 per cent this year from 2.4 per cent in 2017.

But the forecast for faster growth will depend on a firming up of commodity prices and reforms.

According to the latest Global Economic Prospects (GEP) report released by the World Bank last week, growth in the region is estimated to have rebounded to 2.4 per cent last year, after slowing sharply to 1.3 per cent in 2016.

“However, despite the pickup, growth will remain below the rates seen prior to the global financial crisis, partly reflecting the struggle faced by the region’s larger economies to boost private investment,” the report says.

In the region, the economic is expected to expand at a solid pace, helped by robust investment growth. Ethiopia is expected to have the highest growth of 8.2 per cent followed by Tanzania at 6.8 per cent; Rwanda at 5.9 per cent, Kenya at 5.5 per cent and Uganda at 5.1 per cent as inflation eases.

Fastest growing economy

“Among East African countries, Ethiopia is likely to remain the fastest growing economy, but growth is expected to soften as it takes measures to stabilise government debt. Growth is expected to recover in Kenya, as inflation eases, and to firm up in Tanzania on strengt