World Bank has lowered its 2016 sub-Saharan African growth projection to 3.3 percent from a previous forecast of 4.4 percent in October, citing plunging global commodity prices.
The Bank urged Sub-Saharan Africa to pursue domestic resource mobilisation, widen tax base and embark on tax reforms, among others, as means of increasing their revenues on the face falling global commodity prices.
It commended Nigeria on steps taken to revamp its economy, noting that “steps taken to improve governance should pay-off in the middle term”.
The views were expressed Monday in the World Bank Country Office, Abuja, via press teleconference on Africa’s Pulse, the World Bank’s twice-yearly analysis of economic trends and latest data for the region.
The bank said the commodity price rout, particularly for oil which fell 67 percent from June 2014 to December 2015, as well as weak global growth were behind the region’s lacklustre performance.
“Overall, growth is projected to pick up in 2017-2018 to 4.5 percent,” the World Bank said in a statement.
It said a projected uptick in economic activity next year would be driven by economic powerhouses South Africa, Nigeria and Angola as commodity prices stabilise.
Nigeria and Angola are the continent’s top two crude oil exporters whose economies have suffered as a result of sharply lower crude prices, while South Africa was also hit by lower platinum, iron ore and coal prices.
“There were some bright spots where growth continued to be robust such as in Cote d’Ivoire, which saw a favourable policy environment and rising investment, as well as oil importers such as Kenya, Rwanda and Tanzania,” the World Bank said.

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