Africa’s economic growth is hinged on the performance of two of the continent’s pillars. These are Nigeria and South Africa, according to a recent Reuters poll.
Nigeria, Africa’s largest economy and the most populated (meaning it has a large local market for any goods or services) has a growth forecast of 2.4 this year and 2.8 next year.
South Africa, the continent’s economy and most has a growth forecast of 1.3 this year and next year should grow by 1.7 .
The two countries make up 50 per cent of total trade on the continent. But these two giants are now plagued by some factors that have hampered their development.
In Nigeria, the various exchange rates for foreign currencies and the slump of global oil demand had negatively impacted on the giant of Africa.
South Africa is not better off. Old infrastructure from the country’s energy monopoly, Eskom, has had its negative effects on the economy. As a growing industrial nation, electricity drives product and lack of it is better imagined than felt.
Last week, the International Monetary Fund (IMF) cut growth projections for sub-Saharan Africa for this year to 3.5 percent from 3.8 percent in October. The World Bank added another stern forecast of 2.8 percent.
Can political stability and clear economic policies change the narrative and improve the grime forecast?