Ghana will be Africa’s star performer

Economists predict Ghana will continue to be Africa’s top performer in 2014. According to Thalma Corbett, chief economist for NKC Independent Economists, all indications point towards Ghana showing an average growth of close to 9% while countries such as Ethiopia, Rwanda, the DRC and Mozambique will continue to impress. “Countries such as Mozambique, the DRC and Ghana are playing a new game with increased foreign direct investments. The DRC for example has seen some major investment in its minerals sector,” said Corbett. “Foreign direct investment in Africa has over the past decade generally followed the oil and oil producing countries have been at the receiving end of the funds. We are now seeing an interesting shift with FDI going to a variety of other sectors. There is no doubt that the upstream petroleum sector will always be attractive in Africa, but other downstream sectors are now also starting to benefit which bodes well for the sustainability of economic growth going forward.” According to Corbett the industrial sector remains important in Africa and construction has been a big driver of growth in many countries. “Private companies and investors have stepped into this arena as they are exporting commodities and to get them out have had no other choice but to build infrastructure which has had a positive effect.” Corbett said as countries continued to up their game the continent would see more intraregional trade take place – a necessary move forward to sustain growth. “At the same time countries are going to have to take a look at their trade balances. Africa is importing substantially more than it is exporting with only the top oil producing countries showing high exporters figures,” she said. “Exports remain concentrated in the minerals and hydrocarbons sector, making up some 60% of the continent’s exports.” Corbett warned that there was still much vulnerability in Africa and especially the worst performing countries would have to up their game significantly into the future. South Africa with a growth rate below 3% ranked in this category, she said. INSERT & CAPTION Worst performing countries, like South Africa, will have to up their game. – Thalma Corbett