Private capital flows to Sub-Saharan Africa, 2004-11
Led by FDI, private capital flows to Sub- Saharan Africa rebounded to near pre-crisis peak, despite perturbations in the global economy
Source: Development Prospects Group.
Data
Trend in poverty rate and GDP growth in Sub-Saharan Africa, 1999-2008
Higher GDP growth is reducing poverty levels; between 2005- 08 the number of poor declined by 9 million.
Source: World Development Indicators and staff estimates
Data
World price of food
Food prices are rising again, but remain below 2011 peak levels
Source: World Bank Development Prospects Group
Data
Size of fuel price subsidy (% of GDP)
Fuel subsidies are costly and not sustainable
Source: Various IMF Country Reports and World Bank’s Country Economic Updatefor Cameroon 2012 and Staff estimates.
Data
Potential distribution of gasoline subsidy to households by income group, % of gasoline subsidy
Richer households spend a larger amount on fuel products and, consequently, benefit much more than poorer households from price subsidies on these products
Source: Preliminary estimates from Africa Region Survey-Based Harmonized Indicators Program (SHIP)for all countries.
Data
Potential distribution of kerosene subsidy to households by income group, % of kerosene subsidy
Richer households spend a larger amount on fuel products and, consequently, benefit much more than poorer households from price subsidies on these products
Source: Preliminary estimates from Africa Region Survey-Based Harmonized Indicators Program (SHIP).
Summary
The global recovery remains weak and fragile, amid some signs of improvement.
Sub-Saharan African countries are continuing to see steady growth, but global uncertainties weigh on the region’s prospects and policy landscape.
The World Bank’s latest poverty estimates show that the number of people living in poverty in Africa has declined--a first for the region.
Food insecurity looms large in several countries in the Sahel region of West Africa, as the sub-region is buffeted by drought, poor food accessibility, and population displacement due to conflict.
In an environment of high fuel prices, fuel subsides are imposing a large and unsustainable fiscal burden, while disproportionately benefiting the rich.
The Africa Pulse is published by the Office of the Chief Economist of the Africa Region at the World Bank. It provides analysis of economic issues shaping the economies of Sub-Saharan Africa.
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