21st century will be african!
At LillyBelle, we are very proud to generate more than 60% of our revenue with our African partners.
And we are now investing locally in Ivory Coast and we will try to participate to this growth trend by creating jobs and local value on the continent.
Several sub-Saharan Africa countries continue to post robust economic growth in spite of a slower pace of growth that the region is recording due to a less favourable economic environment, estimated the World Bank in a report published on 5 October. Thus, Côte d’Ivoire, Ethiopia, Mozambique, Rwanda and Tanzania should record a growth rate of at least 7% a year between 2015 and 2017, according to the latest edition of « Africa’s Pulse », half-yearly publication of the World Bank which analyses the economic prospects of sub-Saharan Africa. This high rate of growth arises notably from investments in energy, transport, the extractive sector and the increase in household consumption.
According to the latest World Bank forecasts, economic growth has stalled in sub-Saharan African countries. It will reach 3.7% in 2015 instead of the 4.6% recorded in 2014, the weakest growth rate since 2009.
In 2015, growth in the region will be weaker than the average of 6.5% recorded during the period 2003-2008. It will even be less than the growth rate of 4.5% registered after the global financial crisis between 2009 and 2014.
For 2016, the World Bank foresees a rebound of growth at 4.4% which would increase in 2017 to reach 4.8%.
This slowing down of growth is explained by the sharp fall in oil prices and other raw materials. But Africa’s Pulse highlights that other external factors have weighed on the economic performance of Africa, such as the slow down of the Chinese economy and the hardening of financial conditions on a global level.
Insufficient production of electricity in many African countries accentuated these negative factors which hindered economic growth in 2015. « the end of the commodity super-cycle is an opportunity for African countries to restart their reforms to modernise their economy and diversify their sources of growth. Implementation of good policies to stimulate agricultural productivity and reduce the cost of electricity while increasing access will increase competitiveness and support growth of light industry », declared Makhtar Diop (photo), World Bank vice-Predisent for sub-Saharan Africa.
Moreover, Africa’s Pulse reveals that poverty reduction has been more rapid than than expected in sub-Saharan Africa. According to the World Bank, the prevalence of poverty on the continent has in effect diminished, going from 56% in 1990 to 43% in 2012. During the same period, the African population has seen improving living standards, especially in health (mother and child mortality) and in primary school education where inequalities based on gender have been sharply reduced.
Birth rates still very high in Africa have however limited the impact of two decades of strong economic growth on the total number of poor people. African countries are still behind compared to other regions with regard to the Millennium Development Goals (MDG).
Source : Ecofin Agency
Article selected by GE.THORIN / LillyBelle