When the International Monetary Fund slashed sub-Saharan Africa’s growth projections this spring, it seemed that the continent’s brief day in the sun had come to an end. The IMF downgraded the growth forecast from 5.8 percent to 4.5 percent in May and again to 3.8 percent in September.
The move came as no surprise, given decreased momentum in major markets such as Nigeria, where growth slowed to a paltry 2.3 percent in the year’s second quarter. The South African economy underwent a 1.3 percent contraction during the same period. This dismal news sparked speculation that a recession was ahead, and investors began to fear an economic contagion that would spread to other regional economies.
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