AfDB’s 2019 regional economic outlook for West Africa

The African Development Bank (AfDB) launched the 2019 regional outlook for West Africa in Abuja. Ebrima Faal, the Senior Director for Nigeria at the AfDB, discussed the key highlights of the report in an interview with CNBC Africa. The report indicates that while the economic performance of West Africa is showing signs of improvement, there are challenges that still need to be addressed. Faal pointed out that overall growth in the region was at about 3.5 percent in 2017 and 2018, with Nigeria playing a significant role due to its large share of the ECOWAS economy. However, Nigeria's slow recovery from recession has had a tempering effect on the region's growth. On a positive note, countries like Cote d'Ivoire and Senegal have demonstrated strong growth rates of 7.4 percent and 7 percent, respectively. One of the key concerns highlighted in the report is the increasing external debt levels in West African economies. Faal noted that the external debt has doubled from 13.5 percent to 26 percent since 2013. While he mentioned there is no systemic risk of a debt crisis currently, vigilance is necessary, especially in countries with high levels of domestic debt like Nigeria. Addressing social issues such as unemployment and poverty remains a priority for many governments in West Africa. Faal emphasized the importance of policies focused on human capital development and skill-building to empower the youth and improve employment opportunities. He stressed the need for strategic policies to enhance value chain development and facilitate economic diversification. Infrastructure development emerged as a critical factor for driving growth in the region. Faal highlighted the significance of robust regional infrastructure to expand markets and support sectors like power and ICT. He emphasized the need for policymakers to intensify efforts in advancing regional infrastructure programs to unlock growth potential across West Africa.