Nov 25, 2009
NAIROBI (Reuters) - African economies will grow by an average of 1.7 percent this year, a downgrade from an earlier forecast of 3.5 percent, as a result of the global recession, the World Bank's vice president for Africa said on Wednesday.

Obiageli Ezekwesili told Reuters the continent's growth in 2010 will be 2.5 percent, down from an annual average of 5.8 percent over the last decade.

"This year it is 1.7 percent and next year, we think it will probably get to 2.5 percent," she said. "Commodities are gradually strengthening, (there will be growth) if there is a resumption in private capital flows, and diaspora remittances, investments in construction then the agriculture sectors."

She said Africa's economic recovery can be quickened if governments invest in core infrastructure projects and China's investment on the continent is welcome.

"The fallout remains and there is going to be a lead time (to recovery)," she told Reuters, adding that the last wave of the global economic crisis hit Africa last.

"If indeed governments spend resources well, if they are efficient in spending in important areas of public investment, in human capital development, economic infrastructure for growth, that lead time will reduce."

Financing for the projects needed will be key and should come from African governments, traditional donors like the World Bank and new partners such as Brazil, China or the Arab world.

China's involvement in developing Africa's infrastructure was welcome, Ezekwesili said, although many people on the continent complained that the Asian giant did not ask hard questions on governance or corruption in countries it invests in.