n AfricaGrowth Agenda - Reflections on the impact of the financial crisis on sub-Saharan Africa

Volume 2014, Issue 1
  • ISSN : 1811-5187


This paper reviews the effect of the financial crisis on sub-Saharan Africa. Commentators predicted a significant fall in exports, remittances and capital flows, resulting in a decline in output. Our review shows that the region fared relatively well during the recession with marginal negative effects on both exports and capital flows. The fall in exports was both marginal and short-lived, almost in tandem with commodity price movements. Portfolio flows declined for a few months while FDI continued on an upward trajectory throughout the period. We conclude that the characteristics of sub-Saharan financial markets that have often been the bane of their existence made them more resilient to financial shocks and worked to their advantage, leading to increased capital flows and investor confidence in the post-crisis period.

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