ECA forecasts high growth rate for Africa in 2008

Stories by Gbola Subair, Abuja

President Umaru Yar’AduaAfrican economies are forecast to grow by an average of 6.2 per cent in 2008, according to the latest edition of the Economic Report on Africa (ERA 2008), the annual joint flagship publication of the United Nations Economic Commission for Africa (ECA) and the African Union (AU), launched.

Titled “ Africa and the Monterrey Consensus: Tracking Performance and Progress” , the ECA noted that African economies continued to sustain the growth momentum of previous years, recording an overall real GDP growth rate of 5.8 per cent in 2007.

Although 30 countries recorded higher economic growth rates in 2007 than 2006, growth performance varied substantially across countries and regions.

The report also noted that economic growth recovery in Africa has not yet translated into meaningful social development and has not benefited vulnerable groups.

Africa's growth performance was driven mainly by robust global demand and high commodity prices. Other growth factors in Africa include continued consolidation of macroeconomic stability and improving macroeconomic management, greater commitment to economic reforms, increased private capital flows, debt relief and increasing non-fuel exports. Africa has also witnessed a decline in political conflicts and wars, especially in West and Central Africa , though peace remains fragile in some parts of the continent.

Key challenges to Africa's growth in 2008, according to the report, included the risk of sharper slowdown in the US economy and a fall in global commodity demand and prices.

Also, high oil prices will hurt oil importers through the current account and inflationary pressures. In addition to political instability in some countries, inefficient public infrastructure and unreliable energy supply at the national level as well as poor integration of transportation and energy networks at the regional level continue to pose important constraints to Africa 's growth.

In addition to a review of regional economic trends, the report assesses progress in Africa in the implementation of the 2002 Monterrey Consensus on financing for development (FfD).

According to ERA 2008, the evidence on implementation of the Monterrey Consensus commitments suggests that substantial progress has been made in the area of external debt relief. However, very limited progress has been made in the other core areas of the Consensus (mobilising domestic financial resources for development; mobilising international resources for development; promoting international trade as an engine of development; increasing international financial and technical cooperation for development; and addressing systemic issues).

Nigerian economy not growing - NACCIMA

Friday Ekeoba, Lagos

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) have taken a swipe on the state of the Nigerian economy.

According to the Association the economy has not shown any significant improvements since the beginning of year 2008 from what it was at the end of 2007.

The President of the Association, Dr Ignatius Ijegwa Adaji, during the first Council meeting of the Association held at NACCIMA House, Lagos , said the economy could have witnessed some marginal improvements if the 2008 Federal Budget was released at the beginning of the year and with speedy commencement of the implementation of some of the policies and programmes enunciated therein.

Adaji said the economy was still hamstrung with a number of problems and challenges, especially when assessed in terms of the achievement of key policy thrusts and set targets as enunciated in the 2008 Appropriation Bill of the President to the Joint Session of the National Assembly. Among the many problems are epileptic state of power supply to industries and the citizenry, unabated massive influx of inferior and substandard products from other nations, high cost of food items, continuous rise in poverty and unemployment rates, etc. “Although, there were some positive developments in telecommunication, financial and few other sub-sectors, many investors and businesses were faced with immense challenges since the beginning of the year.”

“Government plans to give priority attention to some identified infrastructure, human and social development projects in some sectors of the economy in the 2008 budget by giving priority attention to highway construction, rehabilitation and maintenance; dredging of River Niger ; refurbishing and equipping federal health institutions; capacity building and training for staff, etc. However, nothing significant has been done in this regard since the beginning of the year. It is therefore hoped that government would demonstrate sincere commitment towards ensuring that the earmarked infrastructural projects and other vital ones listed in 2008 budget are carried out by the various Ministries, Departments and Agencies concerned and that appropriate legislation and regulatory framework would be institutionalised for Public-Private Sector Partnership (PPP) in their execution.”

The NACCIMA President said that among the various projects earmarked include, the dualisation of Aba-Ikot Ekpene-Uyo-Calabar road, dualisation and speedy completion of the East-West road in the Rivers, reconstruction of Aba-Owerri, reconstruction of Port-Harcourt road leading into Aba metropolis, Onitsha-Owerri Road, Shagamu-Benin dual carriage way, etc, in order to enhance trade and commercial activities in these areas.