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World Bank Report Shows African Economy Improving

The World Bank has dubbed 2005 ?The Year of Africa? and quite rightfully so. In its annual report, the World Bank presented an optimistic picture of the overall state of Africa?s economy and went on to pinpoint the major changes that have taken place over the year. The report noted that due to fewer conflicts in the region and increased economic growth, the future of Africa is looking much brighter than in previous years.

The World Bank report showed that at least 16 African states were able to substantially lift more of their citizens above the poverty line, due to their ability to maintain an annual economic growth of at least 4.5% since the previous decade. This reason, combined with the fact that many African leaders were taking more responsibility with their economies, meant that more international countries were interested in investing in the region.

The report also noted that although inflation was down to historic lows, foreign investment in Africa was only 1.6% of the entire global foreign investment. This sum ? translated into $10.1-billion ? was unfairly distributed on the continent, with 50% of that amount being invested in Sudan and Nigeria. Despite this one negative point, the report revealed that many countries in Africa were five years ahead of their schedule of halving poverty. These countries included Cameroon, Mozambique, Uganda and Ghana. By 2015, the World Bank aims to eradicate extreme hunger and poverty, reduce child mortality and achieve universal primary education.