Africa's economy projected to continue growth: ADB

Source:Xinhua Published: 2013-8-7 23:06:27

As other economies like the Eurozone are struggling to recover from the 2008 global economic meltdown, Africa's economy is projected to continue its growth, the African Development Bank (ADB) said on Wednesday in its economic outlook.

The outlook, released in Johannesburg, predicted that Africa's economy would grow by 4.8 percent in 2013 and 5.3 percent in 2014.

Three West African countries -- Sierra Leone, Ivory Coast and Ghana -- will be amongst the countries with the highest real Growth Domestic Product (GDP) growth for 2013/14, ADB chief economist Mthuli Ncube said while releasing the outlook.

This will make the West African economic region, also known as the Economic Community of West African States (ECOWAS), the fastest growing economy on the continent, according to Ncube.

He said Africa's economic growth would improve if countries enhance the management of their mineral resources.

Ncube urged African countries to ensure that it introduces better tax systems on mineral resources to avoid losing mining royalties through illicit transfers.

Africa has lost about $1.4 trillion in revenue due to illicit transfers or theft where revenue made by mining houses leaves the continent due to under-invoicing on mineral resources.

Ncube said the best way for Africa's economies to improve growth is regional integration, in terms of infrastructure investment and maximizing revenue from mineral resources.

He said there is a lot more to be gained in terms of the movement of people and investment.

"There are some long-term challenges, and the first one is infrastructure investment. As a bank, 60 percent of our portfolio focuses on infrastructure investment," he said.

That alone could help the region to grow by 3 percent more and reduce the trade deficit gap.

Ncube also called for removal of visa requirements between African states so as to promote the movement of people, which would in turn improve intra-investment opportunities that would fast-track regional integration.

"I am certain that we can make progress on regional integration. It is very important. Regional integration has three pillars ?C movement of people, movement of capital and trade in goods and services," he said.

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