2015 was an uphill journey for Africa’s economies, worsened by a slump in commodity prices and a strengthening dollar. As China faced a sharp fall in its markets, Africa’s commodity exporters were hit hard.
“Because China is such an important player on the world market especially in respect of the demand for commodities the fact that it is slowing down and the demand for commodities is falling has resulted in the demand in commodities prices themselves declining sharply and this has resulted in the currencies of countries that are heavily depending upon exports in commodities to suffer.”Aza Ajamin, Economic Analyst
But some country’s emerged stronger in 2015. Somalia, a country recovering from more than two decades of civil war, made significant progress, focusing on stability and growth.
“According to the UNDP about 73 percent of the Somali population lives below the poverty line of $2 a day. That said, the economic conditions have recovered significantly since the end of the civil war, and in particular, in 2014, GDP is estimated to have grown by about 4 percent, inflation remain low about 1 percent.” Rogerio Zandamela, Mission Chief To Somalia, IM
In Burundi, the nation’s ailing economy weighed heavily on the population, as protests and political uncertainty intensified following President Pierre Nkurunziza’s decision to run for a third term.
“I am not making any money. I hardly make enough money to eat. I used to sell cases of beer but now I am lucky if I sell even one. It’s over and there are no customers.”Eric Nsabimana, Trader
Tanzania, which is one of the fastest-growing and stable economies in east Africa, is facing growing public frustration with the pace of change in a country endowed with gas and mineral deposits, but lagging behind other regional economies.
“We have families, we have children, wives, we have people we are taking to school and our parents in the countryside depend on us because we live in the city like other successful people. I think we are very key shareholders in this country especially youths who make up the biggest percentage of the population. People here do not have jobs; we are tired of being told everyday that jobs will be created. This has become a propaganda tool that politicians are using so that we can vote for them.” Amani Kameo, trader
Overall, growth in Africa is projected to pick up to 4.4 percent this year, and further strengthen to 4.8 percent in 2017. The World Bank recommends that countries focus on more investment in new energy capacity, attention to drought and its effects on hydropower, reform of state-owned distribution companies, and renewed focus on encouraging private investment will help build resiliency in the continent’s power sector
