Sub-Saharan Africa and Growth
2016 was a difficult year for many countries, with regional growth dipping to 1.4 percent—the lowest level of growth in more than two decades. Even the companies who are providing heavy equipment for sale were disturbed by the economic condition of these regions. Sub-Saharan Africa’s economic growth remains clouded and fragile and the reasons behind it is a less supportive global environment, poor infrastructure, delayed policy response and corruption, these factors always remain a block and hinder growth by creating challenging business environments.
Forecast says 2020 will be successful year for economic growth and better than 4% and beyond but it is only possible with sustained construction equipment activity although, the potential will differ by country according to its policy, natural resource inherited and access to capital.
China’s robust economy sector will help in regaining economic growth for Sub-Saharan Africa and commodity prices should improve as the global economy gradually expands. Expansion in domestic markets, income gains and regional integration will support both economic growth and construction activity
Macroeconomic plays an important role in improving in most countries and IHS ( Information Handling Services) also has been involved to expand sub-Saharan Africa coverage in its Global Construction outlook while facing some issues.
A rebound with countries like Kenya, Mozambique, Ethiopia, Uganda, Ghana and Tanzania who have strongest economical prospects will support sub-Saharan Africa in economical progress and strong and sound domestic policy measures are needed to restart the growth engine. Companies like CAT, Volvo, Komatsu etc. who were providing used motor graders for sale were analyzing their policies and strategies so that they can come up with innovative ideas to overcome this economic situation.
