His forecasts are similar to a prediction for the African economy. “The Year 2015 should be a very good year for the economy of Africa. In 2015, we shall see more and more sovereign funds investing in Africa. These funds are going to target sectors such as infrastructures, services and agriculture“.
That is the opinion expressed by Yogesh Gokool, director of the International Banking at AfrAsia Bank, in an interview entitled “Africa’s Economic Outlook for on 2015” granted to our colleagues of “Made It In Africa“.
He underlines that the economic growth in Africa in 2015 should reach 5 % knowing that according to a recent report jointly published by the African Development Bank (ADB), the Development center of the Organization for Economic Cooperation and Development (OECD) and the United Nations Development Programme (UNDP), the continent got in 2013 an average growth of 4 %, with 1 point higher than that of the global one; the study having concerned for the first time, the 54 countries of the African continent.
According to Yogesh Gokool, “investment funds and insurance companies are going to invest abroad. The African currencies are going to get stability and there will be more many African economies that will succeed in investing in capital markets with sovereign bond issues on the Eurodollar markets“.
There will be more foreign investments and money transfers from non-OECD countries to Africa. For example, Japanese and South Korean rich businessmen are going to concentrate themselves on acquisitions in Africa, he said.
According to him, the global investors will continue to gather funds in specialized structures that will be used to finance infrastructure projects in Africa. In this way, these infrastructures will serve as support for the development of the exchanges between the countries of Africa.
Giving his opinion on the performance of the African economies, Gokool considers that three factors must be taken into account, namely: the stagnation of the African exports towards the traditional European markets, the general slowdown of the growth in China and the fall in oil prices. Yogesh Gokool specifies that in case of the spreading of the Ebola virus, the economic consequences would be dramatic on the economic activities of the countries of West Africa, disrupting transport, international exchanges, investments, offer chain, as well as tourism.
“If we succeed in containing this Ebola virus, we could expect more investments in Africa from Europe, particularly the French multinationals“, asserted Mr. Gokool.
Nigeria, bigger oil-producing country on the continent, could expect boosted growth rates of 7,3 % in 2015, he supported. Ethiopia should also be fast expanding, particularly thanks to its agricultural and energy sector.
But, the latter specifies that all this could only be possible provided that the global economy continues strengthening and the political and social stability in progress.
Original text by: Blaise AKAME