Sub-Saharan Africa: sustaining growth amid global slowdown

The uncertainty in macroeconomic policies and lack of political constancy has spurred a momentous slowdown in global economic activity since 2009.
Growing tensions in the Euro zone over potential rescue measures for the PIGS economies (Potrugal, Italy, Greece and Spain), and sputtering growth in the hitherto global growth drivers among the BRICs (Brazil, India, China and Russia) have collectively rattled consumer and investor confidence worldwide.
The growth in the industrial yield among the developing countries also lingered well below its 10-year average of 7.5 percent.
This slowdown in real activity has led to a crunch in global trade. Global trade flows shrank at a pace of 4.5 percent between May and July 2012. Although, the conditions in the global financial markets have relieved owing to major interventions by the central banks, especially the ECBs tout of "do whatever it takes to save the euro" and European Stability Mechanism by the German Constitutional court; investors are still awaiting the implementation of the promised responses.
Despite the slowdown in the global economy, the growth in Sub-Saharan Africa stayed largely on the track. The region is estimated to grow by 4.8 percent in CY12, largely unchanged from the 4.9 percent growth rate of CY11.
However, exclusive of South Africa, the regions growth is anticipated at six percent, making it one of the fastest growing developing regions globally. The regions exports sprang up in the first quarter of the CY12, growing at an annualized pace of 32 percent, up from the -11 percent pace posted in the last quarter of CY11.
Another important indicator of Africas upbeat growth is the brawny investor interest in the region, with FDI amounting to 31 billion dollars expected to pour in this year. Moreover, new discoveries of oil, gas, and other minerals in African countries are also likely to spawn a wave of significant mineral wealth in the region, in turn attracting more investments.
With its past tainted by political instability, conflicts and vague business environment, Sub-Saharan Africa is making a robust leap to the fore, backed by resilient domestic demand, strong commodity prices, and most importantly, an accommodative policy environment.
Africa has been able to reach this buoyant growth by strengthening economic transparency and financial controls around new discoveries, leveraging their full potential through development policies that increase economic growth, create jobs, reduce poverty, and improve health and education especially for young people and future generations, while balancing the immediate needs.
The imminent outlook for the region also remains optimistic, with growth anticipated over five percent in CY12-13. However, threats to the outlook include the risk of intensified financial stresses in the Euro zone leading to a further sink in the global economy and the likelihood of an oil price surge triggered by rising geo-political tensions.