Publications
June 26, 2017
Institutions And Sustainable Industrial-led Development In Sub-Saharan Africa
In 2015, economic growth in Sub-Saharan Africa
(SSA) slowed to 3.4 percent from 4.6 percent the previous year. The economic
slowdown in the region was the result of an interplay of several external and
domestic factors such as lower commodity prices, slowdown in the economies of
major trading partners, tightening borrowing conditions, political instability
and conflict, electricity shortages and other infrastructure deficiencies (World Bank, 2016). This sluggish
growth trends is in contrast to the impressive growth recorded in the region,
over the past decade.
Related
Nigeria Economic Update (Issue 46)
The
Executive council recently approved a three-year external borrowing plan
(2016-2018) which specifies external borrowing of approximately $30 billion (to
be sourced mostly from MDBs) for infrastructure development.
Although, the plan is yet to be approved by the Senate, the planned concessional
loans for infrastructural development would imply inflows of foreign exchange which
could help moderate the exchange rate volatilities in the near term, and offer
potential improvement in business productivity and job creation.