By Our Reporter
A new report by the Centre for Economics and Business Research (Cebr) says, African countries are starting to diversify sources of growth away from commodities. Although times are challenging, the regional outlook remains bright with growth above the world average.
Cebr is commissioned by the institute of Certified Accountants of England and Wales (ICAEW) to produce this report quarterly. The report provides its 144,000 members with a current snapshot of Africa’s economic performance. An official launch of the inaugural edition was hosted by ICAEW at Hilton Mauritius Resort & Spa on Wednesday 13th May 2015 in the presence of African delegates and policy-makers.
According to the report, seven years after the global financial crisis, African prospects have improved but the story is a mixed one. Underlying figures point to a relatively strong year globally – with the major economic boost from lower oil and commodity prices. These are acting as a shot in the arm for global consumers by lowering household living costs, as well as giving central banks room to keep interest rates low without worrying about inflation.
However, this is also creating challenges for some African countries, especially commodity-exporting ones.
Danae Kyriakopoulou, ICAEW economic adviser and Cebr Senior Economist, said, “These price falls are creating both winners and losers as the economic balance of power shifts from commodity exporters to importers. For some individual oil and commodity-exporting economies, including a number of African countries, the fall in prices is reducing profits and associated tax revenues. It is also reducing spending power as the same volume of exports can now buy fewer imports. This risks are making economies less attractive to investors as those sectors become less profitable.
