Sub-Saharan economies are driving global growth -Bloomberg

According to reports, the GDPs of Rwanda, Côte d’Ivoire, Ethiopia, Kenya, and Mozambique have expanded faster than those of the rest of the world.

Bloomberg last week revealed that several African countries have been exhibiting exceptional economic development amid a global slump, helped along by the pandemic-induced shift to cellphone commerce.

Five of the ten economies with the fastest rates of growth in the world are located in Africa: Uganda, Côte d’Ivoire, Ghana, Rwanda, and Kenya. Over the following two years, at least a few more African nations are predicted to surpass their global counterparts in terms of economic growth.

According to data, whereas global growth averaged 6.3% and 3.5% in 2021 and 2022, respectively, Rwanda’s GDP grew by 11.1% and 8.2%, respectively.

According to analyst forecasts, Rwanda is expected to lead the continent in growth this year with an estimated 6.8%, followed by Mozambique at 6.4%, Côte d’Ivoire at 6.2%, Ethiopia and Uganda at 5.5%, and the world economy at 2.8%.

In a region of the world where people are generally younger than anywhere else, Bloomberg noted that “the coronavirus, if anything, accelerated the transition among Africa’s 54 countries to wireless, remotely engaged commerce from traditional exporters of natural resources.”

The paper states that the Sub-Saharan telecommunications sector has been exhibiting “extraordinary” stock market performance and revenue growth. Sales for the 15 largest enterprises in the area are predicted to jump by 18% this year and by 9% in 2024 and 2025, following a 29% increase over the previous five years.

Bloomberg noted that telecom companies are expected to have an 11% increase in revenues, surpassing the global average of 3%. “The outlook for corporate Africa is similarly stellar with the financial, communications, and consumer staples industries outperforming the world in 2024,” the publication reported.

The survey noted that although bond market losses have been at an all-time high for investors worldwide, sovereign bonds issued by Ghana have returned 20% so far this year, with returns from Mauritius and Zambia coming in second and third, respectively.

Bloomberg stated, “Without the persistence of Africa’s exceptional growth, none of this investor confidence would be possible.”