- AfDB to Review Africa’s Growth Projection for 2019, 2020
The uncertainty surrounding US-China trade deal and Brexit continued to dictate global growth, and in recent months has started impacting business decisions on the African continent.
Akinwumi Adesina, President, African Development Bank (AfDB), said trade dispute between the two world’s largest economies has impeded growth in most African nations without a possible solution in-sight.
He also noted that with the United Kingdom pushing to leave the European Union without a deal come October 31, there is clear evidence that trade flows, new investments and foreign revenues of most African nations will take a hit.
Therefore, he said the bank is likely to review its Africa’s economic projection from the current 4 percent for 2019 and 4.1 percent in 2020 if the global risk to the continent accelerates.
“We normally revise this depending on global external shocks that could slow down global growth and these issues are increasing by the day,” Adesina told Reuters on Saturday on the sidelines of the Southern African Development Community meeting in Dar es Salaam, Tanzania.
“You have Brexit, you also have the recent challenges between Pakistan and India that have flared off there, plus you have the trade war between the United States and China. All these things can combine to slow global growth, with implications for African countries.”
Adesina said African countries, through the recently signed African Continental Free Trade Area agreement, need to increase within each other and boost agricultural produce in order to withstand external shocks.
“The countries that have always been facing lower volatilities have always been the ones that do a lot more in terms of regional trade and do not rely on exports of raw materials,” Adesina said.
“The challenges cannot be solved unless all the barriers come down. Free mobility of labour, free mobility of capital and free mobility of people.”
