Natasha Chamba, Business Reporter
The African Development Bank (AfDB) predicts that this year, Africa's gross domestic product will grow by four percent, which, as expected, will accelerate to 4, 1 percent in 2020.
In its 2019 Economic Outlook Report, the Bank stressed that the prospects for growth on the continent will be affected by the continuation of overall economic activity.
"The prospects for growth in Africa are still stable, but improved macroeconomic and employment performance requires growth in the industry," says some of the report.
"The overall economic performance of Africa is continuing to recover, and GDP (gross domestic product) is projected to grow to four percent in 2019 and 4.1 percent in 2020."
The report, which is published annually since 2003, is the Bank's flagship initiative, which provides key figures on the indicators and outlook for the African economy.
The economic outlook for Africa is due to a considerable lack of knowledge of the African economy through regular, rigorous and comparative analysis.
The 2019 report focuses on three key areas: Africa's macroeconomic performance and outlook, employment and strong dynamics, and the integration of African economic prosperity.
Significantly, the report identifies five key trade policy actions that are likely to bring Africa's total profits to 4.5 percent of GDP or $ 134 billion a year.
The policy set includes all applicable bilateral tariffs in Africa, maintaining the rules of origin simple, flexible and transparent, removing all non-tariff barriers to goods and services, and negotiating with other developing countries to reduce tariffs and non-tariff barriers to 50 years. percent.
Commenting on the report, Hanman Morsi, Director of Macroeconomic Policy Forecasting and Research at AfDB, noted that, despite rising sovereign debt across Africa, there was no systematic risk of a debt crisis.
“At the current pace of labor growth, Africa needs to create around 12 million new jobs every year to prevent rising unemployment.
"There is a need for coherent industrialization efforts based on countries," he said.
Last year, AfDB allocated a USD 4.1 million grant to Zimbabwe through the African Development Fund and part of it was used to reform three state-owned companies.