By Judith Ugwumadu | 20 October 2014

African governments should develop growth-enhancing policies that raise more revenues to further bolster their economies and improve governance, according to the International Monetary Fund. 

The fund expects the African economy to grow by 5% this year, amid the outbreak of the Ebola virus and civil insecurity.

Growth is expected to be driven by continued public investment in infrastructure, buoyant service sectors and strong agricultural production, the IMF’s Regional economic outlook: sub-Saharan Africa report published today stated.

However, the forecast is below the 5.5% it predicted in April. The IMF said sustaining high growth rates remained the key policy consideration for the continent, including fostering job creation and reducing poverty.

‘Policies should continue to emphasise growth-enhancing measures,’ said Antoinette Sayeh, director of the IMF’s Africa department.

‘In particular, the focus should be on boosting fiscal revenue mobilisation, channelling spending towards infrastructure investment and other development needs, safeguarding social safety nets to encourage more inclusive growth, and improving the business climate.’

For the countries currently affected by the Ebola outbreak ‘fiscal deficits should be allowed to widen’, she said, particularly when grants are not immediately forthcoming and provided that the public debt levels remain manageable.