The club 7 of fastest growing Sub-Saharan african economies


Economic growth in Sub-Saharan Africa

As we get closer to the middle of 2014, the statistics of international institutions have begun to publish economic data from the previous year. The IMF has just released its April report on regional growth in Africa. In this perspective, the Mounou Konan Global Economic Consulting group is analyzing the performance of the top seven economies in Africa South of the Sahara.

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Sierra Leone (16.5 %) continues to grow in an extraordinary way in 2013. This is the result of strong growth of nearly 90% in the mining sector. Ethiopia comes in 2nd position with a growth rate of 9.7 % in real GDP. Unlike Sierra Leone where mining sector is the engine of growth, in Ethiopia, economic growth is the result of agriculture (43%) and services (45%). The third country is the Republic of Congo with 8.5 % increase in GDP. The engine of economic growth in this country is oil exports which accounts for 86 % of Gross Domestic Product.

 

  GDP Investsments Exportations FDI
Sierra Leone 16.5 14.8 35.9 12.9
Ethiopia 9.7 28.8 12.4 2.4
Republic of. Congo 8.5 33.5 35.7 7.4
Cote d’Ivoire 8.1 17.2 51.6 3
Liberia 8     …. 46.2 16.9
Mozambique 7.1 48.7 34 36
Tanzania 7 34.2 26.5 6

 

When comparing the increase in domestic investment for 2013, Mozambique ranks first with 48.7 %. The country ranks first on Foreign direct investment, which increased by 36% between 2012 and 2013. With such performance, GDP increased by only 7.1 %. Somewhere, may this economy is facing a bottleneck. Cote d’ Ivoire leads in the area of ​​exports with 51.6 % of GDP. The history of economic growth in this country has always been attributed to the strength of the export of raw materials. Ethiopia reveals a disturbing fact. This country does not reach a top of the list in any of the categories; however, is the second great performing nation. FDI (2.4 %) and exports (12.4) had the lowest proportions of GDP in 2013. Should we conclude that economic growth in 2013 was mainly led by internal factors (strong domestic demand)?

 

HUMAN DEVELOPPMENT INDEX

 

  HDI in 2012 loss in HDI (%) Change in

GNI  between 1980  2012

Sierra Leone 0.359  41.6 +11
Ethiopia 0.396 31.9 +102
République of Congo 0.534* 31.10 +9
Cote d’Ivoire 0.432 38.6 -0.36
Liberia 0.338 63.9 NA
Mozambique 0.327 32.7 +106***
Tanzania 0.476 27.3** +69
Moyenne de

L’Afrique au Sahara

0.475 35  

 

Social development indicators as the HDI and the change in Gross National Income (GNI), reveal many important facts. In 2012, the Republic of Congo did obtain the highest Human Development Index HDI (0.534) outperforming the average for Africa South of the Sahara (0475). Tanzania ranks second with an index (0.476) slightly above average. Mozambique is last with a score of 0.327.

When one takes into account the the loss in HDI du to  social inequality, Liberia (63.9), Sierra Leone (41.6) appears as nations with highest reductions. Tanzania has the lowest group rates of social inequality (27.3).

GROSS NATIONAL INCOME

Over a period of 32 years, the nations that have managed to increase in a big way national income of their inhabitants are respectively Mozambique and Ethiopia with an increase of 106 and 102%. Cote d’ Ivoire is the only country to have the lowest (-0.36) the national per capita income (-0.36).