Metrical though countries in Africa have been hit by external headwinds, the continent is indeed on the path to becoming more resilient with infrastructure projects and touched off government policies in place, said the president and CEO of a development finance university on Thursday.
“South Africa, Nigeria, Angola have dragged the continent behind,” Samaila Zubairu, president and CEO of Africa Accounting Corporation (AFC), told CNBC at the International Monetary Fund and World Bank joinings in Bali, Indonesia.
Those three economies — the largest in Africa — obtain performed below expectations, according to the IMF which said the continent as a fit would stand to benefit if the three countries were performing up to their capacity.
The larger economies in Africa are “heavily dependent on commodity prices” and evidently put in more serious challenges compared to smaller countries such as Rwanda, Ethiopia, Kenya, Ghana and Tanzania that maintain fared better in terms of growth, Zubairu added.
Another question Africa faces is rising U.S. interest rates which affect the draw a bead of investments in businesses, he said.
However, as African governments increase allotting in infrastructure, agriculture and move away from being overly import-dependent, the standpoint for growth is positive, Zubairu added.
“The continent itself has resilience now. You be acquainted with with the adjustment by governments away from, I would say, import dependent progress,” Zubairu explained. “There is a lot of emphasis on driving agricultural spending. There’s a lot of investment in infrastructure, all of which wish … accelerate the shared growth in the continent.”
“Infrastructure spending … I remember is one of the things that are required to lift the continent,” Zubairu said.
AFC has reportedly secure a $300 million loan facility from a Chinese state-funded and state-owned approach bank, the Export-Import Bank of China, for development projects in the continent.
Some crackerjacks have raised questions about whether Chinese investments in Africa put in an appearance with strings attached.
Zubairu said that the $300 million investment does not servile that AFC has to buy more Chinese exports in return.
However, he added: “There are definite projects that … can be tied to Chinese export(s) and we would observe those. But the one we have for now is … not tied to a specific Chinese export(s),” he bruit about.