Sub-Saharan Africa growth rate second best to Asia – Fitch
Growth in Sub-Saharan Africa through 2013 is expected to remain above 5%, according to Fitch Ratings, making it the second fastest growing emerging market region after Asia.
The rating agency said growth will be supported by infrastructure spending, development of mineral resources and growing consumption.
Improved policy regimes, efforts to improve business environment and rapid credit growth in certain countries will support the development of the private sector.
The region will also benefit from continued foreign direct investment, with local capital markets attracting international investors. Growing investor appetite may persuade other countries to follow Zambia, which recently issued its first Eurobonds.
Sovereign ratings will be affected by a number of events this year.
Kenya faces elections in March. If smooth they could improve the investment climate. But if a repeat of election violence seen in 2008 appears, it could be a setback.
Ghana is set to reveal figures soon which will show the amount of government overspend in its election year. Fitch said it expects a deficit of about 10% of GDP, but with a risk that it could be more.
Rwanda and Uganda are awaiting further aid, but any delays could impact government finances.