World Bank upbeat about Africa's growth pace

By Prosper Makene

World Bank

The World Bank Group committed a record USD 14.7 billion in fiscal year 2013 (July 2012 to June 2013) to support economic growth and better development prospects in Africa despite uncertain economic conditions in the rest of the global economy.

In a press statement released on Monday, World Bank Vice President for the African Region Makhtar Diop said the region has shown remarkable resilience in the face of a global recession and continues to grow strongly.

Diop also said that Africa is at the centre of the World Bank Group 2030 goals of ending extreme poverty and promoting shared prosperity, in an environmentally, socially, and fiscally sustainable manner.

“The World Bank Group continued its strong commitment to Africa approving USD 8.25 billion in new lending for nearly 100 projects this fiscal year (FY13). These commitments include a record USD 8.2 billion in zero-interest credits and grants from the International Development Association (IDA), the World Bank’s fund for the poorest countries. This is the highest level of new IDA commitments by any region in the Bank’s history,” he said
He pointed out that the International Finance Corporation (IFC’s) total commitment volume in Sub-Saharan Africa, including mobilisation, grew to a record USD 5.3 billion, 34 per cent more than a year before.

Similarly, IFC’s spending on Advisory Services programmes in the region increased to more than USD 65 million, about 30 percent of IFC’s total.

This led to increased results in fragile and conflict states and greater impact in IFC’s primary areas of focus such as sustainable farming opportunities, access to finance for microfinance clients and individuals, improved infrastructure services, and greenhouse gas emissions reductions.

Supporting developmentally beneficial foreign direct investment into Sub-Saharan Africa is a priority for MIGA. In 2013, the Agency issued USD 1.5 billion in guarantees supporting investments into projects in the agribusiness, oil and gas, power, services, and water sectors.

A significant volume of this coverage is for investments in power generation projects in Angola, Côte d’Ivoire, and Kenya. Sub-Saharan Africa accounted for 54 per cent of MIGA’s new volume this year -- more than double last year’s level of 24 per cent.

The Bank Group’s support focused on major transformational projects in agriculture and power, and also on social safety nets, conditional cash transfers for poor families, job creation programs for young people, and higher education.  

SOURCE: THE GUARDIAN