By IANS
Midrand, (South Africa) : Many African economies appear to be on the path of faster and steadier economic growth, according to the World Bank’s Africa Development Indicators 2007.
Speaking on the occasion of the annual release of the continent’s development indicators Wednesday, World Bank Country Director Ritva Reinikka said African economies’ performance during 1995-2005 showed recovery from the stagnation over 1985-1995, South African news agency BuaNews reported Thursday.
Average growth in the Sub-Saharan economies had been 5.4 per cent in 2005 and 2006, which conformed to the projected growth rate.
“Leading the way are the oil and mineral exporters, thanks to high prices. 18 non-mineral economies, with more than a third of the Sub-Saharan African people, have also been doing well,” said Reinikka.
The chief economist at the World Bank for the Africa Region, John Page, said one of the worrying factors highlighted in the report was the lack of export diversification in many of the African economies.
Crucial to the acceleration of growth in the continent is increasing private investment. Good investments, bolstering infrastructure, spurring innovation, and building institutional capacity will be important, he said.
The World Bank economist explained that Africa was still “a high-cost, high-risk place to do business as opposed to East Asia and the Pacific.”
“The good news is Africa can compete globally, but infrastructure creates expensive bottlenecks, and African economies just aren’t competitive enough as the economies of South and East Asia,” Page noted.