The world bank has projected economic growth in Sub-Saharan Africa to fall below expectation in 2016.
According to Africa’s Pulse, the bi-annual analysis of economic trends in the continent, growth is expected to be 1.6% in 2016 — lower than the 2.4 per cent forecast of the world bank in June.
The bank noted in the report that African countries that depend on commodities are not serious with the diversification of their economies.
“Shocks from collapsed commodity prices and tighter financial conditions, exacerbated by domestic pressures arising from policy uncertainties, adverse weather conditions, and political and security concerns, have continued to weigh on activity in the region,” the report said.
The projected slip in growth is nearly half of the 3% growth recorded in 2015 and the uninspiring economic fortunes of Nigeria and South Africa, the continent’s largest economies, is said to be largely responsible for the slowed growth.
In the midst of the gloomy outlook, a turnaround and appreciable progress is expected in the coming year.