Limited access to finance is a major obstacle to development of SMEs in Africa as their inherent higher perceived risk makes financial institutions reluctant to lend to them and adequate financial instruments lack.

Against a backdrop of sustained global growth and high commodity prices, Africa has experienced its best economic performance in many years. While recent economic performance is not merely driven by favourable external factors, African economies still lack proper “shock-absorbers” to...

China’s and India’s strong appetite for energy and metal has boosted international prices and the volume and value of African exports. China in particular has become the main trade partner for a number of African countries providing cheap manufactured goods and reducing Africa's dependence...

Limited capacity to pay, large infrastructure needs and a huge backlog in the construction of sanitation facilities make recourse to cross-subsidies and government-funded subsidies a necessity in Africa. * This Policy Insights introduces the African Economic Outlook 2007.

Africa’s economic progress now seems on a firm footing after a third straight year of satisfactory performance in 2005, with overall growth of 5 per cent, average per capita income up 3 per cent and inflation steady at under 10 per cent. Two-thirds of the 30 countries surveyed in the Africa...

Strong commodity prices are driving Africa’s growth, which should be about 6 % in 2007 and 2008. External vulnerability is a function of its limited integration into international trade and investment flows. Africa should mobilise external sources more strategically. In this respect, aid for...

Access to energy is essential for economic, social and political development. Despite its enormous potential in fossil and renewable energy sources, Africa suffers from major energy deficits. The continent’s resources are underexploited or exported in raw form or wasted in the course of...

Africa is unlikely to reach the drinking water and sanitation Millennium Development Goals. Disparities among countries are large, and the deficit in sanitation is greater than that for drinking water. Serious reforms in institutions, legal frameworks, and policies are needed.

Transport infrastructure has been dangerously neglected in recent times. Lack of transport infrastructure impedes economic integration and poverty reduction. Involving the private sector in financing the transport infrastructure is proving harder than anticipated.