6 •
The Lion King
• October - December 2017
BY ABIOLA RASAQ
SAILING AFTER TIDE;
AFRICAN ECONOMIES BACK TO SPEED
2018 ECONOMIC OUTLOOK
Oil price rally, though negative for net importers, contin-
ues to prop up GDP growth in countries like Chad, Congo
Brazzaville, Gabon, Ghana and Nigeria. With oil price recov-
ering 52% and 18% in 2016 and 2017 respectively, exporters
such as Nigeria and Ghana leveraged attendant increase
in foreign currency earnings to stabilize their respective local
currencies, improved current account imbalances and whis-
tled down inflation rate pressures. More so, higher oil earn-
ings bridged fiscal deficits and provided the much-needed
revenue to fund public sector spending. In a similar trend,
Zambia benefited from the 30% surge in Copper price, just
P
utting behind the 2016 slippage, when most African
economies either slowed down or came to a halt, the
continent gained steam in 2017 and remains on the
path of sustainable recovery. Whilst fiscal policies remain
elusive in the big African economies, the strong recov-
ery in commodity prices, global growth momentum and
easing inflation present upsides to economic recovery in
Africa. From barely 1.4% growth in 2016, Sub-Sahara Africa’s
economy is estimated to have grown 2.4% in 2017, with a
stronger prospect to to accelerate 3.2% in 2018, as recovery
takes firm foot.
