A gradual recovery in some commodity prices and continued reform efforts are part of the new Africa narrative, but risks remain.
Weaker GDP growth in Angola, Namibia and Zambia has dragged Southern Africa economic growth lower to a projected 0.2% this year. In a more positive development, South Africa exited a recession in Q3, but growth is still expected at a lacklustre 0.7% this year. North African growth is supported by a bustling Egyptian economy, while growth is expected to pick up in the Franc zone due to infrastructure investment. In turn, East Africa continues to boast some of the fastest-growing economies on the planet. Finally, Central & West African growth is still forecast at 2.6% in 2018, but the recent slide in oil prices represents yet more downside risk to the continent’s biggest economy, Nigeria. (Source: Africa Quarterly Update December 2018.)