African nations are facing mounting risks as they seek to extend two decades of stellar economic growth.
While the continent has benefited from increasing investor inflows from abroad, it’s now contending with a commodity downturn, power shortages, political instability, a slowdown in China and the prospect of higher U.S. interest rates.
The International Monetary Fund (IMF) last month lowered its 2015 growth outlook for sub-Saharan Africa by 1.25 percentage points to 4.5%. Expansion in Nigeria and South Africa, Africa’s two largest economies, is set to slow.
“Sustaining Africa’s growth is going to prove increasingly challenging,” Peter Attard Montalto, an economist at Nomura International Plc in London, said by phone on Tuesday. “External demand is volatile, global growth potential has fallen and competition for trade and investment within the continent is increasing. All countries will need to step up their game.” Read more. Source | Mail Guardian Africa