Like the majority of emerging markets, GDP growth in the African region has dropped dramatically over the last three years. Of sub-Saharan Africa’s big four economies – Nigeria, South Africa, Angola and Kenya – two are rapidly contracting (Nigeria, Angola) whilst one is static (South Africa). It is only Kenya which is bucking the regional trend and growing at a decent emerging market rate of over 5% – arguably the base norm for a true emerging market in the region for progress in the face of high population growth.
So what then is the “new normal” for Africa? There has been a severe commodity price correction; debt serviceability by sovereigns is posing crises for many countries; localized conflict is flaring up across the continent; and governance is seemingly on the decline.
Please read the report from Deloitte here.
[www2.deloitte.com/]