IMF projects 3.2% economic growth for SSA in 2019

The International Monetary Fund (IMF) recently released its World Economic Outlook (WEO) report projecting a 3.2% economic growth for Sub-Saharan Africa in 2019 and a 3.6% growth for the region in 2020. Specifically for Nigeria, the IMF forecasted a 2.3% growth for 2019 and a 2.5% growth for 2020. To shed light on the feasibility and implications of these projections, CNBC Africa spoke with Paul Alaje, Senior Economist at SPM Professionals. Alaje highlighted the challenges facing Nigeria's economy, particularly in light of the global economic slowdown attributed to the U.S.-China trade war. The IMF report indicated a decrease in oil prices by 9.6% in 2019, with a further 6.2% reduction predicted for 2020. This downward trend in oil prices has significant implications for oil-dependent economies like Nigeria. One key issue raised by Alaje was the need for structural reforms to address the vulnerabilities in Nigeria's economy. He emphasized the importance of diversifying revenue sources beyond the oil sector and implementing measures to enhance efficiency and reduce wastage. Alaje pointed out that while the government has initiated reforms in areas such as power, subsidy rationalization, and revenue mobilization, there is a lack of visible progress, especially in revenue generation. The discussion also touched upon the critical role of human capital development in driving economic growth. Alaje highlighted the disparity in budget allocations between sectors like security and infrastructure, compared to essential areas like education and health. He underscored the need for a strategic partnership with the private sector to attract investments and stimulate economic growth. Alaje expressed the view that Nigeria needs to create an enabling environment for private sector participation by addressing issues such as judicial system efficiency, policy consistency, and governance transparency. He emphasized the importance of instilling investor confidence through adherence to contracts and commitments made by the government. In conclusion, Alaje called for a holistic approach to economic development, involving both national and sub-national levels of government. He stressed the need for sustained efforts to address key structural challenges and create a conducive environment for investment and growth. As Nigeria navigates the complex economic landscape marked by global uncertainties and domestic challenges, the insights provided by experts like Paul Alaje serve as a valuable guide for policymakers and stakeholders in charting a path towards sustainable and inclusive economic development.