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AGRICULTURE, CONSTRUCTION, MINING MUST TAKE CENTRE STAGE

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sundayeditor@times.co.sz


MBABANE – Undisputedly, Eswatini will continue to be in the bandwagon of slowest growing economies in 2019.


This will happen while Niger, Benin, Burkina Faso, Tanzania, Ghana, Rwanda, Djibouti, Senegal, Ivory Coast and Ethiopia continue being the fastest growing economies in Sub-Saharan Africa.
According to relevant data courtesy of Trade Economics, in 2018, Ethiopia topped all the countries in terms of economic growth. It recorded an 8.5 growth and it was followed by Ivory Coast (7.4 per cent), Rwanda (7.2 per cent), Senegal (7.0 per cent), and Djibouti (6.7 per cent), Tanzania (6.4 per cent), Ghana (6.3 per cent), Burkina Faso (6.0 per cent), Benin (6.0 per cent) and Niger (5.1 per cent).


The growth of these countries Gross Domestic Products (GDPs) is because they all concentrate more on some key sectors and they pump more money on those particular industries. Some of the industries they concentrated on are agriculture, tourism, mining, infrastructure development (construction), energy and information communication and technology.

budgets allocation


When looking at their budgets allocation to agriculture, one notes that they range from 5.0 per cent to above 10 per cent.
This is unlike in Eswatini and other slowest growing economies including South Africa, Botswana and Lesotho whose budget allocations to agriculture is surpassed by the allocation to security forces. This therefore means Eswatini should emulate the fastest growing economies and put more focus on agriculture, mining, tourism, infrastructure development and energy production to boost the economy.


According to latest data released by the IMF, Eswatini’s GDP is forecasted to grow by 1.3 per cent, South Africa’s by 1.4 per cent and Lesotho by 0.8 per cent. All these countries will be among the lowest growing economies in 2019.
An independent economist who elected to comment on condition of anonymity said the new government should concentrate on what will benefit more people like agriculture, infrastructure development, energy sector and mining. He said the fastest growing economies are boosted mainly by the aforementioned industries.

dam construction


The economist went on to say that with the climate change, more resources should be dedicated to earth dam construction so that subsistence farmers in the rural areas can benefit. He further said it is time that government speeds up the releasing of idle government farms to be utilised by interested investors for agricultural purposes.
Regarding mining, the economist said it would be a good decision for government to reopen the closed mines (iron ore, diamond and coal) because they have a potential to create more jobs for the unemployed emaSwati. The economist further mentioned that the construction of the Lothair – Sidvokodvo rail line should be prioritised, completion of the Sicunusa - Nhlangano road and the completion of the oil reserve project at Phuzumoya. 
  
 How countries managed
10. Niger (5.1 per cent)
Niger has managed to increase its gross domestic product (GDP) by 5.1 per cent more than the same period of 2017. The African Development Bank Group also suggests a steady economic growth for Niger, with a 2018 growth forecast of 5.4 per cent and 5.2 per cent in 2019. That’s mainly because of the oil and agricultural sectors, especially the latter as a direct result of the expected decent agricultural conditions such as decent amounts of rainfall.
9. Benin (6 per cent)
Benin is another African country with growth potential. Benin is currently executing its 2016-2021 plan (also known as ‘Benin Revealed’) to improve public investments, particularly in sectors like tourism, infrastructure, basic services and agriculture.
In fact, agricultural production is one of the main reasons for Benin’s encouraging economic forecast.
The estimated amount of cotton production in Benin for 2016 alone was 450 000 tons and that combined with the expansion of electricity production, are all helping to catapult Benin’s economic growth this year.

8. Burkina Faso (6 per cent)
Just northwest of Benin lies the west-African republic of Burkina Faso.
Boasting a population of almost 20 million, this densely populated country maintains a rather young age structure, with 45 per cent of the population being younger than 15 years of age.
The exponential economic growth of Burkina Faso is reinforced by the country’s investment plan that’s focused on infrastructure, telecommunications, agriculture, and energy.
7. Ghana (6.3 per cent)
The oil and gas production saw Ghana’s economy grow at a rate of 8.5 per cent in 2017, although that rate has slowed down since. The 2018 forecast of 6.3 per cent economic growth, which is still quite spectacular; Ghana’s positive economic outlook can be attributed to its natural resources and most notably, the booming oil production that catapulted the country’s annual growth rate.

6. Tanzania (6.4 per cent)
Tanzania has a strong economic growth. Tanzania is enjoying an average GDP growth of 6.73 per cent (from 2002 to 2017), while the 2018 predictions point to 6.4 per cent. It should be noted that in recent years Tanzania’s growth has hovered around the 6.0 -7.0 per cent mark, which is a testimony to this country’s efforts in areas such as: mining, communications, construction, trade and repair and water supply. And while the aforementioned sectors skyrocketed, others like agriculture, transport, and storage have a lesser output.

5. Djibouti (6.7 per cent)
Djibouti is located in the eastern part of Africa and it’s one of the smallest countries on the entire continent, both territory and population-wise. The overall population is almost 1 million, with over 37 per cent of that number being people under the age of 15. While this might be a small country, it still manages an average GDP annual growth of 2.59 per cent.
Unsurprisingly though, the efforts of Djibouti’s government are concentrated on several key elements, such as improving the infrastructure, most notably its ports (construction). Apart from that, increasing employment rates and further stimulating economic growth are also part of Djibouti’s long-term strategy for a sustainable development.

4. Senegal (7 per cent)
The country that occupies the westernmost point in Africa (Pointe des Almadies, Dakar. The 2018 forecast courtesy of the Trade Economics points out at a growth of 6.8 per cent compared to 7.0 per cent in 2017. That is still a rather spectacular rate that’ll most likely be supported even further by areas like: financial services and trade, agriculture and fishing. These sectors saw the highest increase during last year and they are expected to solidify Senegal’s annual economic growth.

3. Rwanda (7.2per cent)
Rwanda’s over 10 per cent economic growth in the first quarter of 2018 should come as no surprise. This reason for this increase is the growth of particular sectors like: Transportation (from 16 per cent in 2017 to 28 per cent in 2018), agriculture, retail and wholesale trade (from 19 per cent in 2017 to 26 per cent in 2018), communication and information (from 13 per cent in 2017 to 24 per cent in 2018). Rwanda is also implementing a fiscal consolidation that’s concentrated on effective public expenditure, in order to battle poverty and support further economic growth.

2. Ivory Coast (7.4 per cent)
Ivory Coast, or officially known as the Republic of Cote d’Ivoire, is located in West Africa and borders two of the other countries in this top 10 economies in Africa 2018 list – Burkina Faso and Ghana. Now, when it comes to the gross domestic product (GDP) figures, this country is undoubtedly one of the most stable countries in Africa, with its 5.17 per cent average growth rate that covers a huge time frame – from 1961 to 2018.
Cote d’Ivoire has maintained a very strong and predictable GDP growth that logically places it among the top performing countries, not only on the continent but in the entire world.
It’s also worth mentioning that Ivory Coast is one of the biggest exporters of raw cashew nuts, coffee, palm oil, and cocoa. This, in addition to the boom in the energy sector, all help Cote d’Ivoire, establish itself as one of the fastest growing economies in 2018.

1. Ethiopia (8.5 per cent)
The fastest growing economy in Africa 2018 has a name, and it is Ethiopia. Situated in eastern Africa, Ethiopia has a whopping 107-million population with 30 per cent made up of young people.
It’s no secret that Ethiopia’s economy is booming and its economic growth has been hovering around 8.0 -11 per cent for over 10 years now. As for the average rate, it’s 5.85 per cent and it ranges from 1981 to 2017, with 13.9 per cent being the most economic growth that this country has seen, with 11.10 per cent being the lowest rate recorded.
One of the key aspects that propel Ethiopia’s economy is its booming industry. A quick look at particular figures highlights that the industry segment of Ethiopia’s GDP skyrocketed from 16.7 per cent to 25.6 per cent, from 2015/2016 to 2016/2017, inspired mainly by elements such as: manufacturing, construction and electricity.
What are the key industries these countries concentrated in:
l Agriculture
l Construction
l Mining
l Energy
l Tourism
l Information, Communication and Technology

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