Oil, mining and a resurgence of direct foreign investment are expected to accelerate Africa’s economic growth this year and next, according to the Tunis-based African Development Bank.
Oil and mining projects in West Africa will lead the growth, according to a report in Moneyweb. Expansion is also expected in agricultural production and services.
Except for Libya and Somalia, gross domestic product in Africa is expected to rise 4.5 percent in 2013, up from 4.2 percent in 2012, the bank said in its annual African Economic Outlook, released in Marrakesh. Expansion is expected to reach 5.2 percent in 2014.
Foreign direct investment could rise more than 10 percent to $56.6 billion this year, near the record set in 2008, while portfolio inflows are set to increase to a record $26.2 billion.
West Africa will help anchor growth, the bank said. The region encompasses Ivory Coast, the world’s largest cocoa producer, and Nigeria, Africa’s biggest oil producer. The outlook is weaker for southern and northern Africa, it said.
“In southern Africa, growth will remain blighted by the slow recovery in South Africa,” the bank said.
“In North Africa, the slow pace of transition to democracy is likely to continue to affect the economies of the region, despite the strong recovery in Libya’s oil production.”
Read more at Moneyweb.