The African economy has been kept at a low growth rate in recent years. The growth rate of GDP from 1997 to 1999 was 2.9%, 3.3% and 3.2% respectively. All of these figures are larger than the population growth. IMF estimated that the growth rate of African GDP could reach 4% in 2000, of which North Africa would be 5%-7%.

The macroeconomic situation in Africa is taking a favorable turn. In order to speed up economic transforming and structure adjustment, many countries have adopted a set of active measures to push forward the pace of privatization, open up international trade and reform based on bilateral and multi-lateral trade agreements. Most of the countries have improved macroeconomic situation greatly. The public financial income has increased and the inflation rate continues decreasing. It is estimated that the inflation rate is 6% this year. The African countries also strengthen the relationship with EU and USA. The signing of “Cotonou Agreement ”and the approval of “ the African and Caribbean Trade Bill” by the US Congress both provide more favorable terms for Africa to enter the markets in developed countries and will benefit the African economic development.

The African economic integration is gaining good momentum. West African Economic and Monetary Union began implementing unified tariffs in January 2000. West African Countries Economic Union decided to issue unified visas and agreed to achieve tariff union in January 2001. The free trade agreement of South African Development Union has come into effect as from September 1, 2000. The union will gradually cancel the trade tariffs of 85% of commodities, and the tariffs of the rest 15% sensitive commodities will be totally canceled before the year 2012 so as to reach the goal of free flow of commodities, capital, technology and labor force. The Southeast African Union intends to cancel internal tariffs before October 31 this year and achieve free trade.

However, the overall economic situation in Africa is critical. The regional development is in the state of imbalance. The GDP of Africa in 1999 was $ 551.6 billion, of which the 7 countries of North Africa made up for 40.4%. And the 11 countries of South Africa accounted for 29.4%, the rest 35 countries only accounted for 30.2%. The total amount of GDP of South Africa, Algeria, Egypt and Nigeria is more than half of the total amount of the whole Africa. The per-capita income of Africa in 1999 was $690, as against $1379 in South Africa and $1273 in North Africa. The per-capita income in the rest African region was only $514.

Debts, impoverishment, wars and illness are still the biggest impediment for the economic development in Africa. The negative influence brought about by irrational international economic order and the trend of globalization makes the fragile African economic condition even more difficult. The gap between Africa and the world economy has been widened. At present the overall economic volume of Africa is less than 2% of the whole world. The trade volume only accounts for 2%of that of the whole world trade. There are 33 African countries among the 48 most undeveloped countries according to the statistics by the UN. The population of absolute impoverished accounts for 45% of the total population, and the number keeps increasing. By the end of last year the debts of Africa had reached $359 billion. Many countries have to issue 1/4 of their financial income to pay debts. It is estimated that only if the growth rate of Africa reaches 5% the increase of the number of impoverished population can be prevented. When the growth rate amounts to 7%, the impoverished population can decrease sharply. It is obvious that Africa needs further efforts to keep up with the pace of world economic integration.