African economy to grow by more than 5 percent over next few years

10 December 2007

Lisbon, Portugal, 10 Dec – The African economy is expected to continue growing at a rate of over 5 percent over the next two years, due to the rise in price of raw materials and macroeconomic stability, a African Development Bank (ADB) official said Saturday in Lisbon.

“Africa will be able to maintain its growth rate at above 5 percent over the next two years, due to the rise in prices of raw materials, such as oil, aluminium, copper and gold, and the main macroeconomic variable that have seen significant development over the last six years, in comparison with the 1990s,” said Louis Kasekende, after an event running parallel to the EU-Africa Summit on African Economic Prospects.

Speaking to Portuguese news agency Lusa, Kasekende said that the “big challenge is knowing how to promote sustainable growth on the African continent, if prices are not sustainable,” in the future.

Kasekende noted the need for “better management of that income, in order to benefit all African people,” and recognized that “Africa needs technical assistance in this area.”

“We sometime see, a strong rally, but often there is no correct management,” he explained, adding that, “Africa needs to increase its growth, not only via raw materials, but also with the work of institutions.” (macauhub)