Linking Africa and India - new media

ECONOMYGhanaian economy grew by 4.7 per cent in 2003and is expected to rise to 5.0 per cent in 2004owing to the developments in the gold miningsector. Higher producer prices and good rains willboost the cocoa production further from thebumper crop harvested in 2002-03.In East and Central Africa, low investorconfidence, lack of donor support and a slump inthe tourism industry had kept economic activitylow in Kenya at 1.5 per cent in 2003. Prospects for2004 are brighter, given promised donor support,with about half the funds planned forinfrastructure projects for roads, airports,seaports, railways and electricity. Growth rate ofUganda came down to 4.9 per cent in 2003 fromthat of 6.7 per cent in 2002 following poor rains inthe first half of the year and continued poor pricesfor the key commodities, coffee and tea. The lowerfood crop production offset the strong growth incash crops production. However, in 2004, thegrowth rate is expected to go up to 5.5 per cent in2004 supported by higher exports, especially nonrisein cement sales and a 12 per cent increase intraditional exports such as fish, and by continued growthmortgage disbursements in 2003. A strong performancein manufacturing, transport and communications. Inin the agricultural sector, following good rains after threeSudan, real GDP growth, which registered a growth of 5.8years of drought, a recovery in tourism as well asper cent in 2003, is expected to remain strong, drivenincreased government consumption, has beenlargely by high levels of consumption and investment.responsible in boosting the real GDP growth rate ofReal GDP growth is expected to move further up to 6.2 perTunisia to 6.1 per cent in 2003 as compared to 1.7 per centcent in 2004 due to significant foreign investmentin 2002. However, growth is expected to slow down ininflows into large capital projects and by increasedMorocco and Tunisia in 2004, to 3.0 per cent and 5.6 perexport volumes on the back of expanded capacity in thecent respectively, as the impact of the strong rebound inoil sector. The Ethiopian economy, on the other hand,agricultural production that followed the ending of acontracted by 3.8 per cent in fiscal year 2003 (fiscal yearprolonged drought, fades.thending July 7 ) as compared to 1.2 per cent growth inIn West Africa, increased oil production underpinned an 2002, as the worst drought for years cut output in theexceptionally strong economic expansion in Nigeria, as agricultural sector, which accounts for about 40 per centthe economy grew by 10.6 per cent during 2003. But the of GDP. Good rains are expected to push the current 2003-growth is expected to slow down sharply in 2004 to as 04 harvest 60 per cent higher than last season, which willlow as 0.9 per cent as the boom in the oil sector wanes. cut the food aid requirement. Better rainfall willExpansionary fiscal and monetary policies have resulted encourage some increased private investment and thein a pickup in inflation and a decline ininternational reserves. The average consumerprice inflation stood at 14.4 per cent in 2003 ascompared to 13.7 per cent in 2002. Due topolitical uncertainty and the effective divisionof the country into two, with its associatedcosts, coupled with the lack of donor supportand difficulties in implementing economicpolicy the GDP of Cote d'Ivoire contracted by3.8 per cent in 2003. However, the country isexpected to grow at 1.8 per cent in 2004, withslow restoration of economic normality assome firms and businesses resume normaloperations throughout 2004. In contrast, theINDO-AFRICAN BUSINESS 17August-October 2004