Sub-Saharan Africa economy grows 2.4% in 2017 – WB

The Sub-Saharan African economy has experienced a growth of 2.4% in 2017, as per the recent Global Prospects report released by the World Bank. Despite this positive growth trajectory, the region continues to face challenges, with regional growth remaining negative in per capita terms. Gerard Kambou, a Senior Economist with the Development Economics Prospects Group at the World Bank, shed light on the report in an exclusive interview with CNBC Africa. Kambou mentioned that there were expectations of a recovery in the region in 2017 due to the strengthening of commodity prices. However, the recovery was not as robust as anticipated, especially in Nigeria, one of the largest economies in the area. He highlighted the slow progress in various sectors and production as contributing factors to this outcome. On a positive note, the economist shared that South Africa's economy had shown stronger growth than initially forecasted, indicating a potential strengthening of the recovery across the region. Addressing the issue of inequality in the region, Kambou emphasized the need for initiatives like the national minimum wage to tackle the alarming wealth disparities. He stressed the importance of fostering an inclusive growth process in South Africa by creating job opportunities and enhancing the population's skills to participate effectively in the labor market. Moreover, he underscored the significance of improving assets such as education and healthcare to empower the population to actively engage in the country's economic growth. In response to a question about the proportion of poor individuals in the total population of South Africa, Kambou stated that implementing measures like the national minimum wage could be a step in the right direction. However, he highlighted the broader challenge of generating a growth process that is equitable and inclusive. By focusing on job creation, skill development, and enhancing social assets, the economist suggested that the country could drive sustainable growth and ensure that its citizens are actively involved in the economic progress. The World Bank's report provides valuable insights into the economic landscape of Sub-Saharan Africa, emphasizing the need for comprehensive strategies to address both growth opportunities and inequality in the region. As countries work towards building resilient economies and promoting social inclusivity, collaborative efforts between governments, businesses, and communities will be crucial in driving sustainable development and improving the well-being of the population.