Sunday, September 24, 2006

Economic Growth in sub-Saharan Africa

Source: IMF Optimistic About Africa's Economic Growth, AllAfrica.Com

The International Monetary Fund (IMF) has recently announced that it expects the economic growth in sub-Saharan Africa to remain strong. According to the IMF, real gross domestic product (GDP) in sub-Saharan Africa is projected to grow by 4.8 percent in 2006.

The expected continuation of growth of the economy in sub-Saharan Africa is due to the prudent economic policies of the countries in the region and the fact that inflation has not gotten out of control.

Under the Multilateral Debt Relief Initiative (MDRI) the IMF has so far granted debt relief to 14 countries in the region. These countries are using the resources afforded them due to the debt relief to increase investment in poverty-reducing programs. However, aid promised by the international community at the Gleneagles Summit last year has not yet been given to these countries.

Because the region is doing well more private capital is making its way there. However, if the countries wish to continue to attract the private sector it will have to do something to lower the costs of doing business in the region.

1. What can be done in this region to attract more private sector investment?
2. How can the countries in this region obtain the international aid that was promised them?

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