Posted on March 20, 2014 by iMFdirect
By Paulo Drummond and Estelle Xue Liu
(Version in 中文)
Growing links with China have supported economic growth in sub-Saharan Africa. But the burgeoning commercial and financial ties between the developing subcontinent and the world’s second-biggest economy carry risks as well. These links also expose sub-Saharan African countries to potentially negative spillovers from China if the Asian giant’s growth slows or the composition of its demand changes.
The old aphorism “If America sneezes, the world catches a cold” referred to the U.S. economy’s role as a locomotive for the global economy, but it can now apply to any symbiotic relationship between a dominant economy and its clients. China has become a major development partner of sub-Saharan Africa. It is now the subcontinent’s largest single trading partner and a key investor and provider of aid.
Filed under: Africa, Asia, Economic research, Emerging Markets, Fiscal policy, Globalization, growth, IMF, International Monetary Fund, Low-income countries | Tagged: Angola, China, commodity prices, Congo, Democratic Republic of Congo, Equatorial Guinea, exports, investment, oil exporters, South Africa, Sub-Saharan Africa | Leave a comment »
Posted on January 11, 2014 by iMFdirect
By Christine Lagarde
(Version in Français)
My second stop on this trip to Africa, after Kenya, was Mali—a country that is facing an extraordinarily difficult transition: from restoring political stability to securing economic stability—from crisis to recovery.
Having gone through massive turmoil in 2012, Mali is emerging successfully, thanks to the perseverance and fortitude of its people. Parliamentary and presidential elections have been held, and the newly elected government has put forth a new economic program aimed at increasing growth and reducing poverty.
Filed under: Africa, Emerging Markets, growth, IMF, International Monetary Fund, Investment, Low-income countries, Politics | Tagged: Africa, Christine Lagarde, economic recovery, Mali, poverty, private inv, Sub-Saharan Africa, women | Leave a comment »
Posted on January 8, 2014 by iMFdirect
By Christine Lagarde
For yet a third year I have kept my tradition of starting the New Year with a visit to Sub-Saharan Africa—a region that truly offers great promise! As the world economy has remained focused on the crisis of the advanced economies, Africa has quietly forged ahead with strong growth led by a vibrant private sector and surging foreign investment. Over the past decade Sub-Saharan Africa has posted growth averaging 5.6 percent a year.
The countries of East Africa have done especially well. So what better place to begin my travels this year than in Kenya, which has emerged as one of the region’s “frontier economies”—countries whose recent performance is propelling them toward middle-income status.
Filed under: Africa, Emerging Markets, Employment, growth, IMF, International Monetary Fund, Low-income countries | Tagged: Africa, business, development, fiscal policy, growth, iMFdirect, infrastructure, International Monetary Fund, jobs, Kenya, regional integration, Sub-Saharan Africa | 1 Comment »
Posted on June 10, 2013 by iMFdirect
By Antoinette M. Sayeh
Sub-Saharan Africa is the second fastest-growing region of the world today, trailing only developing Asia. This is remarkable compared to the current complicated state of the global economy, with Europe still struggling and the United States slowly on the mend.
In 2012, Sub-Saharan Africa maintained solid growth, with output growth at 5 percent on average. The factors that have supported the region through the Great Recession—strong investment, favorable commodity prices, and generally prudent macroeconomic management—continued to be at play.
Filed under: Africa, Economic Crisis, Economic outlook, Emerging Markets, Employment, Financial Crisis, Français, growth, International Monetary Fund, Low-income countries | Tagged: Democratic Republic of Congo, Ethiopia, Ghana, growth, investment, jobs, Malawi, regional economic outlook, Sub-Saharan Africa, Tanzania, unemployment | 1 Comment »
Posted on May 24, 2011 by iMFdirect
By Antoinette M. Sayeh
(Version in Français)
Sub-Saharan Africa’s “frontier markets”—the likes of Ghana, Kenya, Mauritius, and Zambia—were seemingly the destination of choice for an increasing amount of capital flows before the global financial crisis. Improving economic prospects in these countries was a big factor, but frankly, so too was a global economy awash with liquidity.
Then the crisis hit. And capital—particularly in the form of portfolio flows—was quick to flee these countries as was the case for so many other economies.
Fast forward to 2011. Capital flows are coming back to the frontier, but in dribs and drabs. Continue reading
Filed under: Africa, Economic outlook, IMF, International Monetary Fund | Tagged: capital controls, capital flows, capital inflows, equity investments, fixed-income investments, foreign direct investment, frontier markets, global financial crisis, liquidity conditions, Macroeconomic policies, macroprudential policies, net private capital flows, portfolio flows, Regional Economic Outlook: Sub-Saharan Africa, shallow financial markets, Sub-Saharan Africa | 1 Comment »
Posted on March 21, 2011 by iMFdirect
By Mark Plant
(Version in Français. Listen to the podcast in English or Français.)
Governments in Africa have a prime objective—to reduce poverty. To improve living standards and create jobs, they need to provide their citizens with better health care, better education, more infrastructure. They need to build hospitals, schools, and to pay doctors, nurses, teachers.
All this costs money. How to pay for this—in a way that is both fair and efficient—is a question that all governments face.
There are limits to how much a government can receive as grants from donors or borrow from donors or the private sector. So raising tax revenues is a necessary element for governments to spend on providing more of these essential services and, in turn, reduce poverty. Continue reading
Filed under: Africa, IMF, International Monetary Fund, Low-income countries | Tagged: AFRITACS, domestic tax revenues, education, equity, health spending, infrastructure, natural resources, poverty reduction, regional technical assistance center, Sub-Saharan Africa, tax administration, tax exemptions, tax policy, taxpayer protection, technical assistance, topical trust funds, trade liberalization, Value-Added Tax, VAT | 6 Comments »