African Countries Sustained Economic Development In '97 - Report

Accra, (Greater Accra) 15 Sept.,

Accra, (Greater Accra) 15 Sept., African economies made a spirited effort at sustaining the economic recovery rates chalked at the beginning of this decade. According to the 1997 Trade and Development Report by the United Nations Conference on Trade and Development (UNCTAD), this trend is likely to be sustained in the coming years owing to certain positive developments on the continent. The report in a segment on output growth in Africa said ''in all the sub-regions, with the exception of East and Central Africa, growth was faster than in 1995''. In 11 countries, it reached or surpassed the six per cent target set by the UN New Agenda for the Development of Africa in the 1990's. In another 28, it ranged from three per cent to six per cent, while in 12 others it was still positive but below three per cent. Only two countries had their output rates declining abruptly. The report attributed the improved situation last year to higher export earnings, especially by oil-exporting countries, favourable weather, greater policy effort and improved terms of trade. The Report said in Ghana, the 1995 growth rate was surpassed from 4.5 per cent to five per cent in 1996. "Production and export of cocoa increased, and in addition gold has become a major source of export revenue". For Nigeria, there was a four per cent growth, compared to the two per cent in the two previous years. Consumer spending, however, remained weak because of the prevailing high unemployment and inadequate public utility services, the report said. In Cote d'Ivoire, the largest of these economies, there was recovery in agriculture, water, power and construction sectors as well as revival in the manufacturing and service industries. Growth was from 5.4 per cent to 5.2 per cent. Average GDP growth in Central Africa in 1996 was slightly below the five per cent posted in 1995, but performance varied among the countries. Equatorial Guinea achieved the best result, where GDP growth rose to 16.2 per cent, up from 11 per cent in 1995 as a result of strong revival in mining and oil output. The Report indicated that although the average growth rate in East Africa in 1996 exceded that of the African region put together, it fell short of that of 1995 despite an improvement in industrial output. "It was Kenya, with the largest economy, that pulled down the average, due to a poor performance in agriculture and tourism. The report said "Somalia had her agricultural output rising by almost 50 per cent in 1996, but harvests were a third below the levels prevailing before hostilities broke out, leaving still a severe strain on food supplies". North African economies buoyed by a rise in oil prices and industrial growth, among other factors, rebounded strongly last year following four years of modest growth. Most remarkable was the sharp swing in output in Morocco which suffered from a severe drought in 1995, but enjoyed record harvest in 1996. In Southern Africa, economic recovery was aided by greater political stability and improved commodity prices. Zimbabwe made an outstanding turn around on a good agriculture, manufacturing and mining . The negative growth of 3.4 in 1995 to leaped a positive growth of 6.6 per cent in 1996. South Africa had the most disappointing economic performance, with growth slowing down due to high rate of inflation and unemployment.