Africa Recorded 3.2 Percent Growth Last Year, Says ECA Report

All sub-regions of Africa recorded a growth rate of 3.2 percent in 2018, while the fastest growing sub-region, East Africa, registered 6.2 percent, the Economic Report on Africa in 2019 reported

The report by the Economic Commission for Africa (ECA) released today stated that the fastest growing sub-region in Africa, with growth rising from 6.1 percent in 2017 to 6.2 percent in 2018, is driven by strong public spending on infrastructure and rising domestic demand.   

Growth in the sub-region reflected strong growth in Ethiopia, Djibouti, Kenya, Rwanda, Tanzania and Uganda with only Burundi growing at below 3 percent, the report added.

According to the report, Africa grew by 3.2 percent in 2018, slightly lower from 3.4 percent in 2017 buoyed by improved global growth that was increasing demand for Africa’s exports due to rising commodity prices and higher investments in infrastructure.

This growth rate is not sufficient to eradicate poverty and achieve the other Sustainable Development Goals (SDGs) by 2030 which the continent needs to beef up to double digit by boosting its current investment from 25 percent of GDP.

Speaking to ENA, ECA Macroeconomics and Governance Director Adam Elhiraika said Africa needs to triple this growth if countries are to achieve the goals.

“Africa will need to raise an estimated 11 percent of its GDP per year for the next 10 years to close the financing gap and attain the SDGs,” he pointed out.

Elhiraika further noted that Africa has to accelerate growth to double digit as the current 25 percent GDP of the continent is much lower than the 32 percent in East Asia.

In order to achieve the goals, studies estimate the financing needs for Africa to be in the range of 614 billion to 638 billion in a year.

According to the director, Africa has made notable progress in education, health, and other social outcomes.

 Africa’s growth is forecast to pick up to 3.4 percent in 2019.