Imran Chohan

Imran Chohan

Somalilandtribune report

East Africa maintained the highest growth rate in Africa, at 6.2 per cent in 2015, according to the World Economic Situation and Propects 2016 report.

The growth is projected to further is increase to 6.8 per cent in 2016, said the report.

East Africa is seeing strong growth thanks to foreign direct investment, infrastructure spending and growing domestic markets. Compared to 2014, growth decreased as a result of lower growth in Ethiopia.

The report cited political uncertainties and instabilities in Burundi and South Sudan and terrorism threats in Kenya and Somalia as have weighed on the region’s growth.

Overall, economic growth in Africa reached 3.7 per cent in 2015, about the same level as in the previous year excluding Libya.

With forecasted growth of 4.4 per cent, the prospects for Africa for 2016 look relatively favourable, despite the uncertainty in the global economy and the weakening of oil and commodity prices.

According to the report, the growth momentum is set to continue, underpinned by increasing domestic demand, coupled with an improving regional business environment, improving macroeconomic management, increasing public investment (especially in infrastructure), a buoyant services sector and increasing trade and investment ties with emerging economies.