African Economy to Grow 6 Pct This Year

SHANGHAI, China (AP) -- Africa's economic growth rate will rise to 6 percent this year, the highest level in two decades, the African Development Bank reported Monday.

Strong demand for oil and other African resources from China and other fast-developing nations is driving growth, the bank said in a statement released in China's commercial hub of Shanghai, where it is holding its annual meeting.

Rising investment, good weather for agriculture, and sound macroeconomic policies also are contributing to the economic expansion, it said.

Increased growth follows an expansion of 5.5 percent in the African economy last year, up from an average of about 5 percent in the preceding years, the bank said.

Growth was strong in South Africa, Algeria, Nigeria and Egypt, the continent's four largest economies, with South Africa seeing growth of 5 percent, the highest level since the end of apartheid, the bank said.

Oil-rich Nigeria's economy grew 5.3 percent last year, a rate projected to increase to 7 percent this year.

However, Zimbabwe's economy contracted about 5 percent amid soaring inflation and the collapse of the farming sector, while Mauritius and Madagascar were hit by competition from Asian textile producers.

Despite the overall expansion, the bank's chief economist Louis Kasekende said growth must accelerate to a steady 7 percent to 8 percent for Africa to reach its goal of halving the number of people living in extreme poverty by 2015.




ADB Group: African Economy to Grow at 6 Percent This Year

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