In its recently released Sub-Saharan Africa (SSA) Credit Overview, Fitch Ratings says that it expects average GDP growth for the 16 countries rated by the agency to rise above 5% in 2014, despite more subdued emerging market growth and less favorable commodity prices. The agency also does not expect Fed tapering to place significant pressure on SSA countries' domestic and external financing capacity.
Fitch expects SSA to continue benefiting from rising foreign direct investment (FDI), particularly in emergent oil and gas producers like Mozambique, Kenya and Uganda. Public infrastructure spending will trend upwards, as governments gain access to new sources of funding and on improved implementation capacity. Rising public sector wages in a number of countries, combined with improving access to credit, will support private sector consumption.
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