Meanwhile, the REO by the IMF showed that economic recovery in sub-Saharan Africa continued.
It said aggregate growth was set to pick up from three per cent in 2018 to 3.5 per cent in 2019 before stabilising at slightly below four per cent over the medium- term or about five per cent when the two major economies, Nigeria and South Africa, are exclusive.
“These aggregate numbers mask considerable duality in growth prospects within the region,” the report said, noting that about half of the region’s countries, mostly non-resource-intensive, are expected to grow at five per cent or more.
“However, the remaining countries, comprising mostly resource-intensive countries are expected to fall behind.
“As these countries—including Nigeria and South Africa—are home to more than two-thirds of the region’s total population, it is important for the policy uncertainties that are holding back growth to be addressed for the lion’s share of SSA to enjoy improved standards of living,” it said.
The report advised SSA countries to step up domestic mobilisation of revenue to help make up for dwindling concessionary funding and keep away the temptation to accumulate more debt.
The report also examined the prospects of the African Continental Free Trade Agreement (ACFTA) that seeks to create a common market worth about $2.5 trillion for African countries.