In recent years developments in many Sub-Saharan Africa economies have caught the attention of international investors who are looking for higher returns in emerging markets. The end of apartheid in South Africa sparked increased interest in the region initially and, since then, many countries have undertaken reforms backed by the IMF and World Bank prompting debt relief from the official community.

Growth has risen and the external position has improved in a number of countries over the past decade, although there has been a wide divergence in performance across the region. Before slowing to 2.1% in 2009 as a result of the global economic crisis, growth for the region as a whole had averaged 6.5% in the five year period 2004-2008 while the combined current account had swung from a deficit of 2.9% of GDP in 2003 to a surplus in each of the three years leading up to the global downturn. Resource-rich countries have attracted an increased inflow of foreign direct investment and there is a renewed focus on gaining access to international capital markets and developing local markets. Several countries besides South Africa now have a formal credit rating and have issued international bonds over the past few years, including Ghana, Gabon and Senegal. Others such as Nigeria, Kenya, Tanzania and Zambia are actively considering tapping the markets in the near future.

Many challenges remain, however, including improving governance, reducing poverty and unemployment, strengthening public financial management, and enhancing infrastructure. Addressing these issues will be key to raising living standards, moving to a higher growth path and attracting more foreign investment.