Contribution to Book
Drivers of Growth in Nonresource-Rich Sub-Saharan African Countries
Regional Economic Outlook: Sub-Saharan Africa. Keeping the Pace
(2013)
Abstract
It is often argued that high global commodity prices have allowed sub-Saharan Africa to grow on the basis of high commodity revenue and related investment. Although this is true for many countries, several nonresource-rich low-income countries have also been able to sustain high growth rates over a relatively long period. This chapter focuses on this less well-known story by looking at a group of six countries that managed to grow fast although they were not resource intensive during the period examined: Burkina Faso, Ethiopia, Mozambique, Rwanda, Tanzania, and Uganda. This chapter identifies several key characteristics common to these countries—improved macroeconomic management, stronger institutions, increased aid, and higher investment in human and physical capital. Their experience demonstrates that improvements in macroeconomic policy, combined with structural reforms and reliable external financing, can foster productive investment and stimulate growth. Despite the robust growth achieved so far in these countries, they still face low productivity and capital stocks, signifcant infrastructure gaps, and limited structural transformation. Addressing these challenges will require sustained policy efforts and continued growth.
Keywords
- Sub-Saharan Africa,
- Growth,
- Macroeconomics,
- Nonresource Rich
Disciplines
Publication Date
Fall October, 2013
Publisher
International Monetay Fund
Series
World economic and financial surveys
ISBN
978-1-47555-341-3
Citation Information
International Monetay Fund (2013), "Drivers of Growth in Nonresource-Rich Sub-Saharan African Countries" Chapter 2 in Regional Economic Outlook: Sub-Saharan Africa. Keeping the Pace. October 2013, Washington DC: International Monetay Fund, pp. 31-54.