Sub-Saharan Africa Diversifying Away from Commodities

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CEIC Macro Watch Global #47 - September 2, 2015 Continuously falling commodity prices during the past few years have been pivotal in urging African governments to seek growth through diversification away from the mining and quarrying industry, and to put efforts into other areas, such as the manufacturing and services sectors. Throughout 2014, Sub-Saharan countries, such as Botswana, Kenya, Nigeria and South Africa, continued to register considerable year-on-year (YoY) combined value-added growth in these sectors: 4.6%, 6.1%, 8.3% and 1.9%, respectively. The services sector has expanded most notably in the region, and has been one of the main contributors to the Sub-Saharan GDP growth. This favourable trend of economic diversification is largely due to the increase in foreign direct investment (FDI) into the region in recent years. In 2013, South Africa enjoyed a FDI inflow of USD8.2 billion, almost double the amount received in 2012, and a further USD5.7 billion in 2014. In 2011, Nigeria reached the high point of its FDI receipts – USD 8.9 billion. Kenya’s FDI receipts have doubled every year since 2012, to reach a little over USD1 billion in 2014. Overall, despite the impact of the falls in commodity prices, real GDP growth for the Sub-Saharan region in 2014 was still a steady 5%, and projections are reasonably favourable for 2015 (4.4%) and 2016 (5.1%).Total investment as a share of GDP is also expected to rise in 2015, reaching 20.4%. By Veleslav Maslarov in Bulgaria - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog

3rd September 2015 Sub-Saharan Africa Diversifying Away from Commodities

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