The economic growth in Sub-Saharan Africa (SSA) region remained positive in 2019, though, dragged by the weak growth posted by regional heavyweights – Nigeria, South Africa, and Angola. Economic recovery remained sluggish in Nigeria and Angola, as the volatilities in the crude oil market, weighed on both countries economic growth. Similarly, economic activities remained underwhelming in South Africa as power cuts – load-shedding – levelled business sentiments.
Also, according to World Bank and IMF, Ethiopia, Ivory Coast, Ghana, and Rwanda remained among the region’s fastest-growing economy in 2019, supported by improved governance, policy stability, higher agriculture and services sector output. This buoyed the supply side activities; even as stronger household consumption and public investment bolstered the demand-side activities. Notably, Ghana recorded a slight slowdown in economic activities as the country commenced life after the end of its 16th IMF bailout program in Apr -19. Also, large interest payments to foreign holders of government bonds kept Ghana’s current account in the deficit, despite an improved trade balance which was bolstered by rising oil and gas exports. Additionally, significant volatility in the foreign exchange markets, coupled with elevated inflation, dampened investment sentiments in Ghana.
Looking ahead, we expect slow recoveries in the larger economies to continue to constrain the strength of the regional growth amid long-delayed reforms. Nonetheless, we expect growth in the smaller economies to continue to support the region’s growth.
United Capital Research
