Eritrea Third Fastest Growing Economy in Sub-Saharan Africa for 2013: EIU

Eritrea leading S-Saharan Africa Economic Growth for 2013
Eritrea leading S-Saharan Africa Economic Growth for 2013

By TesfaNews,

The Economic Intelligence Unit (EIU), an independent business within The Economist Group, ranked Eritrea the third fastest growing country in Sub Saharan Africa for 2013.

On the other hand, Ghana as the most stable democracy in Africa ranked 7th behind Sierra Leone, Tanzania, Eritrea, Zambia and Rwanda, while Chad, The Gambia, Liberia and Mozambique follow.

The research by The Economist Intelligence Unit also ranked Ghana 14th among the world’s 20 fastest growing countries for 2013. 

This was disclosed by Mr Robert Ward, the Country Director of the EIU, at the start of a two-day conference dubbed “The Ghana Forum” and organised by the The Economist magazine in Accra last Tuesday.

Outlook for 2013-14

The large-scale diversion of resources and manpower to the military is likely to continue. However, the extensive state controls on the economy could be relaxed following the recent liberalisation of foreign currency transactions.

Real GDP growth is forecast at 7% in 2013 and 8% in 2014, driven by activity in the mining sector. It could be higher if the government follows through on plans to begin opening up the economy.

The current-account deficit is forecast at 5% of GDP in 2013 and 5.2% of GDP in 2014 as imports continue to dwarf exports, despite steady growth in mining activity, and as remittances are curbed slightly by the UN sanctions.

Review

The Ethiopian foreign minister, Tewodros Adhanom, has reiterated his country’s readiness to hold peace talks with Eritrea to resolve their long-running border dispute.

The Canadian government has ordered an Eritrean envoy to leave the country following claims that he had still been collecting Eritrea’s 2% “diaspora tax” at its consulate in Toronto in breach of UN sanctions.

South Boulder Mines of Australia has signed a 50-50 joint-venture deal with the government-owned Eritrean National Mining Corporation (Enamco) to develop and operate the Colluli Potash Project.

Nevsun Resources of Canada has completed its copper flotation plant at the Bisha gold mine, a key stage in the mine’s transition from gold to copper-concentrate production.

The China Shanghai Corporation for Foreign Economic & Technological Co-operation (China Sfeco Group) has begun work on projects totalling an estimated US$100m in Eritrea.

Eritrea Economic Forecast for 2013 and 2014 (Source: Economic Intelligence Unit)
Eritrea Economic Forecast for 2013 and 2014 (Source: Economic Intelligence Unit)

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