Africa will continue to attract investments in 2012-16 – EIU

Africa’s economy is expected to prove resilient and to continue to grow strongly in 2012 to 2016, says the Economist Intelligence Unit (EIU) October 20, 2011 on its Global Forecasting Service (GFS).

This investment attraction to Africa according to the EIU is supported by rising external inflows (capital and investment, particularly from Asian sources), high commodity prices and fiscal spending.

“Economic reform programmes will continue (albeit subject to some delays) and will boost the role of the private sector in the economy, but the general operating environment remains difficult in a large number of sub-Saharan states,” said the UK-based unit in a brief note on its GFS.

It noted that government bureaucracy, rampant corruption, infrastructure bottlenecks, skills shortages and structural difficulties will continue to present major challenges.

“By 2013-16 the regional economy is forecast to average growth of nearly 5% a year,” it said.

By Ekow Quandzie