Sub-Saharan Africa economic growth remained relatively strong in 2018 with the region recording a 2.7 percent GDP growth, a rise from 2.3 percent recorded in 2017.
In East Africa, a rebound in growth was recorded in Rwanda, Uganda, and Kenya, which grew by 7.7 percent, 6.8 percent, and 6.0 percent, respectively, as at Q3’2018 driven by improved agricultural performance attributed to improved weather conditions.
The Cytonn Annual Market Review 2018 disclosed that a slowdown was however recorded in Tanzania mainly underpinned by an unfavorable investment climate following President John Magufuli’s stringent policy changes.
In Western Africa, several countries recorded growths of 6.0 percent and above which include Benin, Burkina Faso, Cote d’Ivoire, and Senegal.
There was however subdued growth in other countries in the region such as Nigeria which recorded a growth of 1.5 percent in Q2’2018 compared to the economic growth rebound of 1.95 percent and 2.1 percent recorded in Q1’2018 and Q4’2017, respectively with the subdued growth is attributed to a decline in oil production, which was due to pipeline closures during the period.
In the Southern Africa region, growth was subdued in South Africa and Angola, which are the two major economies in the region. Growth in Angola, the region’s second largest oil exporter was dampened by reduced oil output following the maturity of key oil fields.
Subdued growth in South Africa was mainly driven by weakness in agriculture, mining, and construction which dragged the economy into a technical recession due to negative growth recorded in two subsequent quarters in Q1’2018 and Q2’2018 at -2.6 percent and -0.4 percent, respectively.