Sub-Saharan Africa to stay on recovery path, rate cuts on the horizon

Sections of works being undertaken at the Thiba mega dam in Kirinyaga East Sub-County meant to boost rice farming in the county. July 21/2019 [Munene Kamau, Standard]

Sub-Saharan Africa will stay on its recovery path next year provided heavyweight economies punch better, a Reuters poll found, but it will still grow below potential for a part of the world with a growing population.

A poll of 15 analysts and economists taken this week showed Nigeria, Africa’s biggest economy, would grow 2.6 per cent next year and Kenya would grow 5.8 per cent. In both cases this is 0.2 percentage points slower than thought in April. “Growth should gain slightly more traction next year, supported by a tendency towards looser monetary policy which will support consumption,” said Cobus De Hart, chief economist for north and west African countries at NKC African Economics.