Sub-Saharan Africa is currently experiencing its slowest growth pace since 1994. The International Monetary Fund predicts that this year the continent will grow at a rate of 1.4 percent, down from 3.6 in 2015. Africa’s economic powerhouses—Nigeria and South Africa—are seeing their lowest growth rates in years. Nigeria is predicted to experience a 1.7 percent decrease, while South Africa’s growth rate will lie at 0.1 percent. The decline in Africa’s GDP growth is a reflection of the challenging global macroeconomic climate. Amid the slump in commodity prices, policymakers have urged African countries to diversify their economies and trigger structural transformation. In order to do so, African countries must attract foreign capital.
After more than a decade of relatively strong economic progress, sub-Saharan Africa’s aggregate GDP growth is slowing as external shocks threaten recent advances. According to the International Monetary Fund’s April 2016 Regional Economic Outlook for sub-Saharan Africa, between 2000 and 2015, the continent grew at an average rate of 5.5 percent.