Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


IMF says sub-Saharan Africa faces heightened risk of capital outflows

24 April 2014, 14:34

Nairobi - Investment in infrastructure and natural resources will continue to underpin economic activity in sub-Saharan Africa, although capital outflows sparked by tighter global financial conditions pose a risk to growth, the IMF said on Thursday.

Inflation looks set to remain contained in most countries, it said.

"The main downside risk to this generally positive baseline scenario is the risk that growth in emerging markets might slow much more abruptly than currently envisaged," the International Monetary Fund said in its latest Regional Economic Outlook.

"As advanced economies tighten their monetary policies, frontier market economies will also face higher funding costs and a heightened risk of reversal of capital flows," it said.

The IMF forecasts economic growth of 5.5 percent for sub-Saharan Africa this year, up from 4.9 percent last year.

That is slightly more optimistic than the World Bank, which projects sub-Saharan Africa's output will grow 5.2 percent this year, partly driven by rising household spending.

Africa, the world's poorest continent, needed to ensure growth was more inclusive, the IMF said, citing Mozambique where although the economy has expanded at the same pace as Vietnam, poverty has declined far more slowly.

The fund said it expected growth in Nigeria - now the region's biggest economy after a rebasing - to quicken as oil production picked up after recent supply disruptions.

It said South Africa, now ranked second largest and which suffered anemic private sector investments in 2013 and mining strikes which persist, will post modest growth this year as demand picks up in its main advanced economy trading partners.

Inflation in the region will accelerate to an estimated 6.2 percent in 2014 from 5.9 percent last year, before easing slightly in 2015, though currency depreciations may lead to renewed upward price pressures, the IMF said.

- Reuters


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
S Mbinya
What to do after breakup

Your life does not end after breakup. Here are tips to move on: Read more...

Submitted by
S Mbinya
Rare gift for President Uhuru Ken...

Young Jubilee supporters have a rare surprise gift for the President. Read more...

Submitted by
George Vodongo
Illegal milk nabbed in Mombasa wa...

Milk powder is considered a sensitive commodity under the EAC Common External Tariff (CET) and attracts an import duty at a rate of 60 per cent. Read more...

Submitted by
S Mbinya
Athlete collapses, dies in Machak...

His coach blamed his untimely death on the supplements the athletes are given. Read more...

Submitted by
S Mbinya
Popular radio presenter found dea...

Grace Makosewe was working for Capital FM before moving to Urban Radio in Kisumu. Read more...

Submitted by
Ben Wangui
Four wards to elect new MCAs in b...

This follows the death of former office holders between April and August this year. Read more...