Significant public investments in agricultural production, infrastructure and expanding retail services, finance and telecommunications is expected to stimulate economic growth in Africa, the World Bank said on Tuesday.

The World Bank said in its latest report on the continent that this improved growth is expected to occur in a context of lower commodity prices and lower foreign direct investment as a result of subdued global economic conditions.

"Commodity prices remain highly significant to Africa's outlook since primary commodities continue to account for three-quarters of Sub-Saharan Africa's total goods exports," said the bank's Pulse, a twice-yearly analysis of the issues shaping Africa's economic prospects.

Despite weaker than expected global growth, the report said the continent's economies continue to expand at a moderately rapid pace, with regional GDP growth projected to rise to 5.2 percent yearly in 2015/2016 from 4.6 percent in 2014.

"Overall, Africa is forecast to remain one of the world's three fastest growing regions and to maintain its impressive 20 years of continuous expansion,"said the bank's chief economist for Africa Francisco Ferreira.

"Downside risks that require enhanced preparedness include rising fiscal deficits in a number of countries, economic fallouts from the activities of terrorist groups such as Boko Haram and Al- Shabaab and, most urgently, the onslaught of the Ebola epidemic in West Africa," Ferreira added.

The report also found the region is largely bypassing industrialization as a major driver of growth and jobs. Instead, it said, extractive industries in the natural resources sector and a surging services industry are propelling Africa's growth. Also output shares of manufacturing and agriculture are declining across the region.

"While manufacturing may not provide a panacea, Africa can and should expand its manufacturing base, especially by boosting its fundamentals -- business climate, macro-economic stability, reliable and affordable energy, lower transport costs and a more skilled labor force -- which will benefit all sectors," it notes.
(Xinhua)