Sustainable Development: Recent Economic Developments in Africa Recent Economic Developments in Africa Of the 53 countries in Africa, only 5 achieved the 7% growth rate in 2002 required to meet the Millennium Development Goals, 43 had growth below 7%, and 5 registered negative growth (table 1.2 and figure 1.4). For the region as a whole, real GDP grew 3.2% in 2002, compared with 4.3% in 2001. Growth slows in regional powerhouses The slowdown in regional growth is due to slower growth in four of the five largest economies in the region of which only Nigeria is from sub-sahara South Africa, which accounts for about 35% of the GDP of the five largest economies in Africa, grew 3% in 2002, up from 2.5% in 2001. This weak performance despite recent increases in the prices of its export commodities, particularly gold, is due in part to sluggish growth in the euro area. In addition, the appreciation of the rand against the dollar in the second and third quarters reduced the competitiveness of South African exports. And the South African Reserve Bank tightened monetary policy on a number of occasions to reduce inflationary pressures. Southern Africa grew faster than the other subregions With the exception of Southern Africa, growth slipped in all subregions—by 3 percentage points in the north, 0.4 in the west, 0.5 in the east, and 1.5 in the centre (figure 1.5). In West Africa the decline is due in part to slower growth in Nigeria—the largest economy in the subregion—from 4% in 2001 to 2.6% in 2002. Reductions in the pace of economic activity in Burkina Faso, Guinea-Bissau, Niger, Senegal, and Sierra Leone also contributed. • In East Africa a 3.5% decline in Madagascar, coupled with modest declines in Djibouti, Ethiopia, Kenya, Somalia, and Tanzania, contributed to the slowdown. • In Central Africa the slowdown is due largely to declines in Equatorial Guinea (from 66.1% to 24.4%), Congo (from 2.9% to 1.7%), and Cameroon (from 5.2% to 4.9%). For the second year in a row, Equatorial Guinea is the fastest growing economy in Africa, thanks to oil and gas. • In Southern Africa growth increased from 2.4% in 2001 to 3.3% in 2002, largely reflecting improvements in South Africa, Angola, Lesotho, and Namibia. Medium-term prospects—mixed In the near term, growth prospects for African countries will depend mainly on the strength of the recovery in global economic activity, the outlook for commodity prices, the progress in reducing political and armed conflicts, and the commitment of African leaders to macroeconomic stability and the principles of good governance. Published Mar 18, 2004 - 04:27 PM

Sustainable Development: African Economies and the Politics of Permanent Crisis, 1979-1999 African Economies and the Politics of Permanent Crisis, 1979-1999 by Nicolas van de Walle (Author) This book explains why African countries have remained mired in a disastrous economic crisis since the late 1970s. It shows that dynamics internal to African state structures largely explain this failure to overcome economic difficulties rather than external pressures on these same structures as is often argued. Far from being prevented from undertaking reforms by societal interest and pressure groups, clientelism within the state elite, ideological factors and low state capacity have resulted in some limited reform, but much prevarication and manipulation of the reform process, by governments that do not really believe that reform will be effective.   Published Mar 13, 2004 - 02:41 PM

Sustainable Development: UN Development Official Calls for Expanding Credit Ratings in Africa to Boost Investment A senior United Nations development official today called for greater inclusion of African nations in international financial markets through the continued expansion in the continent of sovereign risk ratings - which place countries on the investor map and allow them access to international capital markets. "The investment potential in Africa is huge," the Associate Administrator of the UN Development Programme (UNDP), Zephirin Diabre, told a conference in New York on capital flows to Africa, organized by the Corporate Council on Africa (CCA). "Through our credit rating initiative, we intend to support countries in their efforts to mobilize resources from private capital markets." Mr. Diabre said better access to financing should help African countries tackle a broad range of poverty alleviation issues and provide an incentive to achieve the Millennium Development Goals set by the UN Summit of 2000, which aim among other things to halve extreme poverty and hunger by 2015. Over the past year several African countries received ratings under UNDP's credit rating initiative with Standard and Poor's. In September, Ghana became the first country to benefit from the initiative and was assigned a 'B+' long-term foreign currency sovereign credit rating. In November, Cameroon received a 'B' long-term and 'B' short-term sovereign credit ratings and, in December, Benin was assigned a 'B+' long-term and 'B' long-term sovereign credit ratings. More sub-Saharan African countries, including Burkina Faso, Kenya, Madagascar, Mali and Mozambique, are expected to receive ratings in 2004. The CCA represents more than 200 companies dedicated to strengthening commercial ties between the United States and Africa. Mr. Diabre noted that helping countries define and implement policies that can create an enabling environment for investment is a top priority for UNDP as part of its support for the New Partnership for Africa's Development (NEPAD). The conference seeks to demonstrate that African markets can be profitable, highlighting key viable financing opportunities and providing a platform for financiers to meet sponsors of projects in Africa. Attendees include representatives from major United States financial institutions, business, and government and African financial institutions and companies. The conference programme is set to explore best practices for investing and analyze current trends in accessing liquidity through African capital markets. Participants will review effective mechanisms for public and private debt flows and examine case studies of high yield investments. United Nations (New York) February 26, 2004 Published Mar 07, 2004 - 11:01 AM

Sustainable Development: High Population Poses Challeges to Waste Disposal I think the site would be interested in an news item from the The East African Standard (Nairobi) March 1, 2004 The high increase in urban population, especially in sub-Saharan Africa, has had an effect on how cities intend to manage their waste. Waste management is an increasing modern urban problem that requires concerted efforts from both the public and private sectors. In the coming years, the success or failure of local government authorities will fundamentally rest on how best they manage their waste. Rapid urbanisation coupled with soaring urban population has naturally led to a population explosion in cities and urban centers all over the world, but more so, in the developing countries. In less than 20 years, half of the entire African population is expected to live in cities and urban centers. Hence, in sub-Saharan Africa alone, urban population is expected to rise to 50 per cent, in 2025, an increase of 14 per cent from 36 per cent in 2000. In Nairobi, for instance, waste management is such a severe problem that the local authorities stopped, a long time ago, pretending they could do something about it. Nairobi is currently home to an estimated three million people. By 2020, the city population is expected to approximate 10 million plus people. If the current solid waste generation in Nairobi is about 2,000 tons per day, the expected tonnage, in the next 16 years, then can only be mind boggling. Thus, the natural question that follows is, are our local governments and the relevant city/towns authorities prepared to cope with the mounting and humongous waste products that will quadruple in the coming future? Suffice to say, the quantity of urban solid waste increases in inverse proportions with every rural-urban migration - which is expected to continue rising dramatically - economic development, changing socio-economic incomes and not least, consumption habits. Increased waste products are also a function of rise in the relative proportion of paper, glass and plastics produced in any given environment. In Nairobi, most of the solid waste products are from households, industrial plants, (educational and social) institutions, markets, and waste dumped in the city streets - a phenomenon that seems to be worsening by the day and which seems too, to have overwhelmed the City Council. Unfortunately, for the Nairobi city, only an estimated 40 per cent of the total generated solid waste is collected and disposed. The remaining waste is left unmanaged, leading to the unattended eye sore that is the garbage heaps sites that are found in the city streets and residential areas. The composition of solid waste generated in the city leaves no doubt that although 60 per cent of the solid waste is biodegradable, plastics, which of course is non-bio-degradable and which currently stands at 13 per cent, will be the city authorities' and environmentalists' future waste management nightmare. The traditional waste disposal, that of dumping it in ostensibly vacant lands or open dumping designated areas has apparently failed - what with increased population and stricter environmental controls. The result of this had been the doubling of the cost of waste controlled services. In retrospect, many local authorities have developed coping mechanisms to deal with the mounting waste. Most of these measures are at the informal level and have not been institutionalised within the respective cleansing and waste disposal department of the local authorities. Other measures have included the incorporation of the private sector to assist in collection and disposal of waste. Needless to say, the involvement of the private sector and more significantly the Community Based Organizations (CBOs) is a telling testimony that the local authorities have been unable to cope with the management of solid wastes. This is despite the fact that on average, waste management absorbs between 30 and 50 per cent of the operating budgets of the local authorities. Published Mar 07, 2004 - 10:29 AM