Economic report on Africa 2003 launched

http://www.phoenixuniversal.com/html/archives/2003/08/V32/focus.htm#economic

The 2003 Edition of the Economic Report on Africa (ERA 2003), which is the economic Commission for Africa's annual flagship publication, was launched here yesterday. The report has revealed weak economic performance in the continent for the year 2002.

According to the report entitled: "Accelerating the Peace of Development", Africa's GDP growth fell from an average 4.3 per cent in 2001 to 3.2 per cent in 2002.
ERA 2003 examines how Africa can achieve growth rates necessary to attain the Millenium Development Goals (MDGs). It ranks African countries based on the performance of macroeconomic, poverty reduction and institutional building policies using an ECA-designed Expanded Policy Stance Index.

Briefing journalists at the launch of the report, officials from the ECA said that the economic slowdown was a reflection of the weaker global economy, effects of low commodity prices in 2001 and the droughts in various parts of Southern and Eastern Africa as well as political and armed conflicts in some parts of the continent. "Only five of Africa's 53 countries achieved the seven per cent growth rate required to meet the MDGs, 43 registered positive but below seven per cent growth rates, and five registered negative growth rates," the officials said citing the report.

Botswana, South Africa, Mauritius, Namibia and Tunisia rank highest in that order, while the Republic of Congo is at the bottom followed by Zimbabwe, Chad, Guinea and Nigeria.

Lower foreign debt, lower budget deficits, lower interest rates, advanced market liberalization, few policy reversals, effective legal systems and higher quality of infrastructures with better access as well as effective pro-poor policies were mentioned as factors contributing to the economies of the top performers.

The findings of the in-depth study carried out on selected seven African countries, namely: Mauritius, Rwanda, Ghana, Gabon, Egypt, Mozambique and Uganda - showed that African governments are faced with the key challenges of escaping poverty, achieving fiscal sustainability to exit aid dependence, energizing African bureaucracies and moving to mutual accountability and coherence.

Regarding Ethiopia, the report said the country has achieved quite a remarkable growth in the last few years, reflecting partly the positive effects of the cessation of hostilities with Eritrea and the benefits of the debt relief under the Heavily Indebted Poor Countries (HIPCs) Initiative.

"With real GDP growth of 8.7 per cent in 2001 and 6.1 per cent in 2002, Ethiopia is one of the few African countries close to reaching the growth target of 7 per cent required to meet the Millenium Development Goals," it said.

The report, however, indicated that the recent gains in growth performance in Ethiopia may be wiped out by famine from failed rains and harvests in the country-side, exposing a quarter of the population to the risk of starvation. (The Ethiopian Herald, July 31/03)