Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


IMF warns Ebola, budget strains endanger African growth

07 October 2014, 14:46

Johannesburg - Sub-Saharan Africa's rapid economic growth is set to continue this year and next, but Ebola and budget problems have exposed the region's vulnerabilities, the IMF said on Tuesday.

Forecasting 5.1 percent growth this year and 5.8 percent in 2015 the fastest growth outside Asia the Washington-based institution warned "the Ebola virus is exacting a heavy economic toll."

More than 3,000 people have died as a result of the illness which is squeezing trade links between Guinea, Liberia and Sierra Leone, and the rest of the world.

"Should the Ebola outbreak become more protracted or spread to more countries, it would have dramatic consequences for economic activity in the west African region," the International Monetary Fund said.

Also read: Africa risks economic infection from Ebola 

Meanwhile unrest and insecurity in Central African Republic and South Sudan continues to have a destabilising effect.

Other risks for the region were more run-of-the-mill but equally stark, with many governments such as the one in South Africa borrowing and importing more than they can afford.

"In contrast to robust activity in much of the region, growth in South Africa has remained lacklustre, dragged down by protracted strikes, low business confidence, and tight electricity supply," the IMF said in its latest review of the world economy.

South Africa, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Senegal, Tanzania and Uganda are all running big current account deficits.

For now, investors seem happy to largely overlook those fiscal red flags, but the IMF warned that attitudes can change quickly.

It cautioned against an "overreliance on volatile capital flows."

The region "has become more sensitive to external real and financial shocks, given its increasing global linkages," the IMF said.

"Lower growth in emerging market economies-notably China-also poses a protracted risk for the region, but especially for countries heavily reliant on commodity exports."

It called on the countries of the region "to pay heed to macroeconomic constraints, avoid overreliance on volatile capital flows, and prevent a permanent widening of the fiscal position."



Read News24’s Comments Policy

Comment on this story
1 comment
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...