Africa's growth to fall to 1.6 pct in 2016: World Bank

The World Bank said Thursday economic growth in Sub-Saharan Africa is expected to fall further to 1.6 percent in 2016.

According to Africa Pulse, the World Bank's twice-yearly analysis of economic trends and data for the region that was released in Nairobi, the sharp decline in aggregate growth reflects challenging economic conditions in the region's largest economies and commodity exporters.

Many of these countries continue to face headwinds from low commodity prices, tight financial conditions, and domestic policy uncertainties. Economic activity has been notably weak across oil exporters, says the analysis.

It says while several nations are registering a sharp slippage in economic growth, some others like Ethiopia, Rwanda, and Tanzania have continued to post annual average growth rates of over 6 percent. Several countries -- including Cote d'Ivoire and Senegal -- have become top performers.

Punam Chuhan-Pole, Lead Economist for World Bank Africa and the report's author, said improving agricultural productivity is key to fostering structural transformation and managing the urban transition by increasing incomes and enabling more people to move out of agriculture.

"Improving the productivity of smallholder farms is central to lifting rural incomes and reducing poverty in Sub-Saharan Africa," said Chuhan-Pole.

"But unleashing this productivity requires investing in rural public goods such as rural infrastructure, agricultural research, and use of improved technologies, as well as in availability of good data and evidence."

By boosting agricultural productivity, countries will not only raise the incomes of farm households, but will also lower food costs and promote development of agro-industry.

The analysis recommends African countries take urgent steps to adjust to low commodity prices, address economic vulnerabilities, and develop new sources of sustainable, inclusive growth. Enditem