Some countries, especially those that are still very dependent on commodities, have seen bigger downgrades. But overall the situation is positive. Only two countries, Sierra Leone (a commodity-dependent economy which has also been hit by Ebola) and Equatorial Guinea (an oil-soaked kleptocracy), will see their economies contract over the next two years. Other African economies, meanwhile, have been upgraded. Lower oil prices are a boon for Kenya, which is a big importer of the fuel. And the Kenyan government is also embarking on big fuel-hungry rail and energy projects.
http://www.economist.com/blogs/freeexchange/2015/04/africa-and-commodity-prices
5 comments:
This could mean that lower oil prices could help make Kenya more prosperous and thus possibly change the dynamics of global economy.
I feel that the political stability and consumer confidence will still play a huge role in the prosperity that follows
This could prove to be vital to get some investment in these economies. Investment will create meaningful growth that will allow for some of these African economies to prosper for years to come. The decline in energy prices could jump start growth in this tough environment.
The change in financial planning and policies have definitely helped these countries grow. You can see major progress, as the article did not refer to any economic decline. I agree with Austin that investment is needed. Not only from FDI but internal investments.
I thought it was interesting how they decided to end the article with saying that the policy makers need to rely less when history has shown IMF and the World Bank giving large amounts of money with conditions. I think that the aid that was given is what caused many counties to become dependent. I know that was the case for Tanzania who attempted to not take aid but after issues with the boarder and conflicts with neighboring countries they had to take aid and still are suffering from that especially in regard to loans.
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