Africa Could Record 4.2% Growth by Overcoming Power Sector Challenges

Sub-Saharan Africa should prioritise the development of its power industry if it wants to overcome the internal challenges to its development.

This is what emerged from World Bank’s latest report of global economic perspectives.

“Solving the problems of the power sector should be a priority,” the report said. “The implementation of appropriate conditions for a competitive industrial sector mainly depends on the adequate supply in power, it adds.

World Bank projects a growth of 4.2% in 2016, higher than the 3.5% recorded in 2015.

However, it says this will be achieved only if prices of commodities stabilise and power limitations are overcome.

“Concerning these limitations, the report is less optimistic. The power crisis could worsen due to the lack of necessary reforms in many countries,” the institution warns.

The analysis arises in a situation whereby most sub-Saharan countries currently suffer from a severe power crisis. Drought, lack of investment in the energy sector and that of reforms to make it more attractive for private investors are the main reasons for this deficit.

Despite all these challenges, the World Bank is optimistic about the thriving of this sector considering the various efforts made by various countries in order to change the situation.

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