Regional Economic Outlook: Domestic Revenue Mobilization and Private Investment

Sub-Saharan Africa, May 8, 2018

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Average growth in the region is projected to rise from 2.8 percent in 2017 to 3.4 percent in 2018.
Growth is accelerating in about two-thirds of the countries in the region.
On current policies, average growth in the region is expected to plateau below 4 percent—barely 1 percent in per capita terms—over the medium term.
External environment drivers noted: stronger global growth, higher commodity prices, and improved capital market access.
About 40 percent of low-income countries in the region are now assessed as being in debt distress or at high risk of debt distress.
External imbalances have narrowed, while the record on fiscal consolidation has been mixed and vulnerabilities are rising.

Domestic revenue mobilization is described as one of the most pressing policy challenges facing sub-Saharan African countries.
Three aspects of domestic revenue mobilization make it particularly important (chapter referenced but specifics not provided on this page).
Strengthening revenue mobilization is highlighted as necessary to raise medium-term growth prospects.

Private investment in sub-Saharan Africa is low compared with other countries with similar levels of economic development.
The low level of private investment is constraining the region’s efforts to improve social outcomes by holding back labor productivity and the resulting gains in real wages and households’ income.
Advancing structural reforms to reduce market distortions is recommended to help shape an environment that fosters private investment.

Prudent fiscal policy is needed to rein in public debt.
Monetary policy must be geared toward ensuring low inflation.
Countries should strengthen revenue mobilization.
Continue to advance structural reforms to reduce market distortions and foster private investment.
Deliberate actions are needed to boost growth potential to achieve sustained strong growth consistent with the achievement of the SDGs.

Regional Economic Outlook: Domestic Revenue Mobilization and Private Investment — May 2018 (IMF page overview)

Chap1
- Chap1 (Markdown version)
- Chap1 (PDF)
2. Domestic Revenue Mobilization in Sub-Saharan Africa: What Are the Possibilities?
- 2. Domestic Revenue Mobilization in Sub-Saharan Africa: What Are the Possibilities? (Markdown version)
- 2. Domestic Revenue Mobilization in Sub-Saharan Africa: What Are the Possibilities? (PDF)
Chap3
- Chap3 (Markdown version)
- Chap3 (PDF)
Executive Summary
- Executive Summary (Markdown version)
- Executive Summary (PDF)
Publications of the IMF African Department, 2012–18
- Publications of the IMF African Department, 2012–18 (Markdown version)
- Publications of the IMF African Department, 2012–18 (PDF)
sreo0518
- sreo0518 (Markdown version)
- sreo0518 (PDF)
stats
- stats (Markdown version)
- stats (PDF)