http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.93Change: 0.00
R/$ = 12.67Change: -0.01
Au 1095.49 $/ozChange: 0.31
Pt 984.00 $/ozChange: 2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
Article   Comments   Other News   Research   Magazine  
 
 
Oct 18, 2012

Poverty rate a worry despite Africa’s middle-income transition

Back
Africa|Africa Shantayanan Devarajan|Education|Health|Resources|Africa|Angola|Comoros|Gabon|Republic Of Congo|South Africa|Zimbabwe|USD|Bank|Bank Cautions|Sub-Saharan Africa
Africa|Education|Health|Resources|Africa|Angola||||
africa-company|africa-shantayanan-devarajan|education-company|health|resources|africa|angola|comoros|gabon|republic-of-congo|south-africa|zimbabwe|usd|bank|bank-cautions|subsaharan-africa
© Reuse this



As many as 38 of sub-Saharan Africa's 48 countries could be regarded as ‘middle income’ by 2025, but World Bank chief economist for Africa Shantayanan Devarajan has warned that such an advancement would not necessarily translate into a reduction in poverty.

Currently, 21 countries, collectively with 400-million citizens, have middle-income status, which the World Bank defines as countries with yearly per-capita income levels of higher than $1 000.

Devarajan notes that at least ten countries, representing 200-million people, were poised to transition to middle-income status over the coming 13 years on the back of prevailing growth rates. Included in the list are countries such as Zimbabwe and Comoros, which would require both growth and stablisation.

Over the past 15 years, the continent had expanded at a rate of two percentage points better than the average global growth rate, and the bank is still expecting sub-Saharan Africa to expand by 4.8% in 2012 – excluding slow-growing South Africa, the region’s largest economy, average growth for the region was forecast at closer to 6% for the year.

But there is potential for a further seven countries, with 70-million citizens, to be included in the middle-income mix over the period if rates of growth accelerated beyond levels achieved over the past 15 years.

Only ten African countries, representing 230-million people, almost certainly will not achieve middle-income status by 2025.

But while Africa’s recent growth spurt has resulted in the first overall reversal in the continent’s poverty rate since the 1970s – from 58% in 1999 to 47.5% in 2008 – the bank cautions that continued progress would depend on continued macroeconomic prudence and improved governance, particularly in the area of natural resources.

In its latest Africa Pulse publication, the bank shows that resource-rich countries have seen a strengthening of economic growth, but poverty rates and inequality levels have not performed as impressively. “Some countries, such as Angola, the Republic of Congo and Gabon, have actually witnessed an increase in the percentage of the population living in extreme poverty.”

“Resource-rich African countries have to make the conscious choice to invest in better health, education and jobs, and less poverty for their people because it will not happen automatically when countries strike it rich,” Devarajan says. “Gabon, for example, with a per-capita income of $10 000 has one of the lowest child immunisation rates in Africa.”

To ensure that the benefits of rising growth are ‘pro-poor’, more jobs will need to be created. And, in the context of high levels of informal sector employment, efforts will also need to be made to improve access to finance and skills in the informal sector.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Editorial Insight News
The trade-off currently being considered in the steel industry is relatively straightforward. The country’s largest steel producer, supported by some smaller companies, is seeking greater protection from steel imports, as well as regulations stipulating that locally...
With tongue firmly in cheek, political commentator JP Landman empathised strongly recently with an audience of mostly male professionals for having to bear the infuriating insistence of their fathers-in-law that the entire country was being kept solvent by a small...
More
 
 
Latest News
Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
Telecommunications group Telkom on Friday said it had posted a 1.7% uptick in net revenue for the three months to June 30, on the back of a strong performance by mobile on data revenue and higher fixed-line subscription revenue. Mobile net revenue for the first three...
Dangote Cement revised its 2015 spending plans to $1-billion from the $700-million estimated nine months ago after it commissioned two new African plants this June, Nigeria's biggest listed company said on Friday. The company, majority owned by billionaire Aliko...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96