Finance forum
AfDB expects steady growth for southern Africa
G
ross domestic product (GDP) in
the southern Africa region will
grow by about 2.2% in 2019, up
from 1.2% in 2018. This is according to
the African Development Bank’s (AfDB’s)
Southern Africa Region 2019 Economic
Outlook report launched recently.
The report published annually, provides
a broad spectrum of information on
economic sustainability in the region.
Although growth is expected to remain
steady, southern Africa is the slowest-
growing region in Africa due to high
inflation, rising government debt, and low
commodity prices, the report revealed.
The report covers the bank’s southern
Africa region, which comprises 13 African
countries, namely: Angola, Botswana,
Eswatini, Lesotho, Madagascar, Malawi,
Mauritius, Mozambique, Namibia, South
Africa, São Tome é Principe, Zambia,
and Zimbabwe. Of these, South Africa
contributes two-thirds of the GDP, which
grew by less than 1% in 2018, but is
expected to pick up this year.
Speaking at the launch ceremony at the
bank’s Pretoria office, Kapil Kapoor, the
bank’s director general of southern Africa
office, said, “We’re excited to launch the
region’s report, which shows promise
in growing its economic environment,
with a rising GDP and industries that
will continue to boost it. The bank will
continue to give its support in the core
areas of development focus, outlined by
the High Fives.”
The report is divided into two sections. The
first details macroeconomic developments
in southern Africa by looking at the
performance and prospects of factors
such as indices of poverty, inequality,
employment, and human development.
The second section of the report looks at
regional integration and the challenges
that countries face in promoting it. The
latter is a process that the bank is keen
to conclude, in line with its High Five
priorities. Regional integration specifically
looks at the trade, production, finance,
infrastructure, and free movement of
people. The Southern African Development
Community (SADC) has taken substantial
steps towards deeper regional integration,
more than other regional economic
communities, except the East African
Community, but it remains at 47% below
the desired target.
The Southern Africa Economic Outlook report
is published annually and provides a broad
spectrum of information on economic
sustainability in the region. It speaks to
the economic governance of the region, to
gain growth and achieve the objectives of
each country and the region as a whole,
as well as the bank’s High Five priorities:
Light Up and Power Africa, Feed Africa,
Industrialise Africa, Integrate Africa, and
Improve the Quality of Life of the People
in Africa. b