Africa's economy set to expand by 5% in 2014

by Elayne Wangalwa 0

According to a report by the International Monetary Fund (IMF) on sub-Saharan Africa’s economic outlook, the continent’s economic success story is a result of improved prospects in a large number of countries within the region, including most oil exporters and several low-income countries as well as fragile states.

“Africa is rising and yes we have some challenges, we cannot deny that but statistics and figures do not lie. If you look at the economic fundamentals, they point towards a resurgent in Africa and because of the reforms we [Africa] have undertaken over the past few years, the economy is doing well,” Patrick Wamoto, High Commissioner of the Republic of Kenya in South Africa told CNBC Africa.

Economic activity in the region is reinforced by African states investing in infrastructure and nascent extractive sectors. In most regions inflation has remained stable, while fiscal balances, on current policies and prospects are generally projected to improve this year.

Africa is a diverse region that offers substantial trade and investment opportunities across national and regional markets. Most heads of state travelled to the United States (US) earlier this week for the first US-Africa Leadership Summit seeking to strengthen trade and bilateral ties.

(READ MORE: Million dollar deals up for grabs at the US-Africa summit)

More than 33 billion US dollar commitments have been announced at the first US-Africa summit to boost economic ties between the US and Africa. US companies announced new deals in clean energy, aviation, banking, and construction worth more than 14 billion US dollars, seven billion US dollars in new financing to promote imports from the largest economy in the world in to Africa.

“We hope the US will pay more attention to Africa in terms of investment and trade. The level of Africa-US trade has increased. The US will benefit much more if they pay more attention to Africa,” Wamoto said.