Recent trends in growth rates in SSA suggest that a large majority of the countries in the region experienced significant improvements in their overall growth performance since year 2000. However, growth performance across the SSA countries selected for this study exhibits substantial disparities over this period. Economic growth rates for each of the sampled countries and for each of the years within the scope of this study are presented in table 2.1. These values are compared using the average values for SSA as a benchmark value for each year.
20 Table 2.1: GDP Growth Rate in Selected SSA Countries
Country/Year 2000 2001 2002 2003 2004 2005 2006 2007
SSA 4 4 3 4 6 6 6 6
Benin 6 5 5 4 3 3 4 5
Percent of SSA (%) 150 125 167 100 50 50 67 83
Botswana 8 5 3 6 7 5 3 4
Percent of SSA (%) 200 125 100 150 117 83 50 67
Cameroon 4 5 4 4 4 2 3 3
Percent of SSA (%) 100 125 133 100 67 33 50 50
Cape Verde 7 4 5 6 -1 7 11 7
Percent of SSA (%) 175 100 167 150 -16.7 117 183 117
Djibouti 0 2 3 3 4 3 4 4
Percent of SSA (%) 0 50 100 75 67 50 67 67
Ethiopia 6 8 2 -2 14 12 11 11
Percent of SSA (%) 150 200 67 -50 233 200 183 183
Gabon -2 2 0 2 1 3 1 6
Percent of SSA (%) -50 50 0 50 16.7 50 16.7 100
Ghana 4 4 4 5 6 6 6 6
Percent of SSA (%) 100 100 133 125 100 100 100 100
Guinea 2 4 4 2 3 3 2 2
Percent of SSA (%) 50 100 133 50 50 50 33 33
Kenya 1 4 1 3 5 6 6 7
Percent of SSA (%) 25 100 33 75 83 100 100 117
Lesotho 5 3 2 4 5 1 8 5
Percent of SSA (%) 125 75 67 100 83 16.7 133 83
Malawi 2 -5 -4 6 6 3 8 9
Percent of SSA (%) 50 -125 -133 150 100 50 133 150
Mali 3 12 4 7 2 6 5 3
Percent of SSA (%) 75 300 133 175 33 100 83 50
Namibia 3 1 5 4 12 3 7 4
Percent of SSA (%) 75 25 167 100 200 50 117 67
Niger -1 7 3 4 -1 7 6 3
Percent of SSA (%) -25 175 100 100 -16.7 117 100 50
Nigeria 5 3 2 10 11 5 6 6
Percent of SSA (%) 125 75 67 250 183 83 100 100
Senegal 3 5 1 7 6 6 2 5
Percent of SSA (%) 75 125 33 175 100 100 33 83
Seychelles 4 -2 1 -6 -3 7 8 7
Percent of SSA (%) 100 -50 25 -150 -50 117 133 117
Sierra Leone 4 18 27 9 8 7 7 7
Percent of SSA (%) 100 450 900 225 133 117 117 117
Togo -1 0 4 3 3 1 4 2
Percent of SSA (%) -25 0 133 75 50 16.7 67 33
Uganda 6 5 6 6 7 6 11 9
Percent of SSA (%) 150 125 200 150 117 100 183 150 Source: Author‘s calculation based on data from World Bank, Africa Development
Indicators online
21 Overall, SSA recorded a 4 percent growth rate in 2000, 2001 and 2003. The lowest growth rate of 3 percent was recorded for the region in 2002. Growth rate rose in 2004 to 6 percent for the region and this was sustained till 2007.
For the year 2000, Botswana recorded the highest growth rate of 8 percent representing 200 percent of SSA average for that year. In sharp contrast, Gabon, Niger, and Togo all reported negative growth rates for the same year.
Gabon however had the worst growth rate of -2 percent which represented -50 percent of the SSA average for that year. The year 2001 was by no means less dramatic in terms of recorded GDP growth rates for the selected SSA countries. For example, Sierra Leone just recovering from long years of civil war topped the study group at 18 percent growth rate. This figure represented 450 percent of the average growth rate for SSA in that year. Malawi and Seychelles reported negative GDP growth rates for 2001. But Malawi was at the bottom as she had a negative growth rate of -5 percent which was -125 percent of SSA average for the year.
Sierra Leone continued to be the best performer in 2002 among the study group as the country again recorded a spectacular growth rate figure of 27 percent representing 900 percent of SSA average for that year. Malawi again was in the negative region with a -4 percent GDP growth rate for the year 2002 which represented -133 percent of the SSA average for the year. Surprisingly, Malawi was the only country within the study group that actually reported a deceleration in GDP growth rate for year 2002. Nigeria was at the top in the year 2003 with a GDP growth rate of 10 percent representing 250 percent of the SSA average for that year. Seychelles came out worst performer in 2003 with a recorded deceleration of GDP growth rate of -6 percent representing - 150 percent of the SSA average for the year.
22 The impressive performances of majority of the SSA economies continued in 2004 with Ethiopia taking the lead position for the year. The Ethiopian economy grew at 14 percent representing 233 percent of the SSA average for the year. Seychelles unfortunately could not catch up with the momentum of growth across the region as the country again was confined to the bottom position with a recorded negative GDP growth rate of -3 percent which represented -50 percent of the SSA average for that year. Economic growth figures for year 2005 revealed impressive economic performances across the sampled SSA countries. The Ethiopian economy was again in the lead with a growth rate of 12 percent representing 200 percent of the SSA average for the year. Lesotho and Togo on the other hand, trailed every other country within the sampled group as each of these countries recorded a growth rate of 1 percent in 2005. This represented 16.7 percent of the SSA average for the year.
In 2006, three countries, Cape Verde, Ethiopia and Uganda tied in the lead with each recording a growth rate of 11 percent for the year. This value stood at 183 percent of the average growth rate for the SSA region in 2006. At the bottom was Gabon with a 1 percent growth rate for 2006 which represented a meager 16.7 percent of the SSA average for the same year. In 2007, the Ethiopian economy maintained its leading role at 11 percent growth rate and this amounted to 183 percent of the SSA average economic performance for the year. During the same year, Guinea and Togo tied in the bottom position as each of the two countries recorded a 2 percent growth rate representing 33 percent of the SSA average for the year.
A quick remark here is to observe that on the average, economic performance remained robust in SSA over the study period. In view of this fact, Rena (2008) pointed out that growth in most of SSA was driven essentially by production and exports of primary commodities. This unfortunately exposes
23 the continent to external shocks which consequently compels growth policies that encourages economic diversification in the continent. Moreover, it is also noted here that those economies that initially recorded negative growth rates began to pick up by year 2005 and no SSA economy within the study group reported a negative growth rate between 2005 and 2007.