Commodity-dependent African States Experiencing Slow Growth - IMF

As state by the International Monetary Fund (IMF) that Commodity-dependent countries like Nigeria in sub-Saharan Africa are growing at a slower pace than other parts of the region.

In its regional economic outlook for sub-Saharan Africa, the IMF highlighted that

while diversified economies like Senegal and Tanzania were projected to grow above the regional average, Nigeria is expected to slow down its growth rate at 2.9 per cent.

IMF therefore urged oil-exporting countries in sub-Saharan Africa to reform their economies to address uneven regional economic growth.

The IMF’s latest World Economic Outlook, had said the region’s economy was projected to grow by 3.6 per cent this year—consistent with last year’s growth and a slight downgrade from the 3.8 per cent forecast in April.

The Fund’s Africa Director, Abebe Selassie, noted that Nigeria’s government must ‘squarely address’ pressing economic challenges that have driven high inflation and raised living costs.

 “South Sudan, Nigeria, Angola are all very much in that camp. They have had very large macroeconomic imbalances, financing challenges which have held back growth. They need to find new sources of growth, get more private sector investment,” Selassie stated.