The International Monetary Fund reported on Friday that Sub-Saharan Africa will accelerated its development in 2007 with about 6.5 percent growth rate, much higher than 5.4 percent increase in 2006.

"The higher growth trend in Sub-Saharan Africa is attributable both to positive external developments, such as foreign demand and high commodity prices, and strong domestic investment and productivity gains," said the Sub-Saharan Africa Regional Economic Outlook released by the IMF.

"Sound economic policies in most countries have also played an important role in supporting these outcomes," the report added.

For example, the oil-producing countries in Sub-Saharan Africa have benefited from large windfall profits in recent years and, in contrast to previous commodity price booms, they have saved a significant part of their additional revenue.

"The challenge for public policy and policymakers is to create the necessary space for higher and effective public spending," said the report.

Besides the benefits from oil production, the recent commodity boom and rapid growth in Asia has improved Sub-Saharan Africa's export prospects, providing an opportunity to reverse the long- term decline in the region's share in world trade, said the report.

"Commercial exchanges with Asia, particularly China, have expanded dramatically, although European Union countries and the United States still account for 2.5 times the export shares of Asia," said the report.

Moreover, recent improved macroeconomic performance and debt relief have altered many African countries'medium term debt outlook.

"As a result domestic debt markets have become more active and, in a number of countries, foreign portfolio investors have shown active interest," said the outlook.

The report also warned that although the outlook is positive, near-term risks for the region remain important.

"An unanticipated sharp decline in global demand would hurt growth in the region," said the report. "Growth and inflation could also be adversely affected by further increases in oil prices and a larger-than-expected fall in nonfuel commodity prices. "

Many countries in the region remain vulnerable to droughts and other natural disasters, others struggle with the high prevalence rates of HIV/AIDS. And there are still political and security risks in a number of countries in the region, said the report.

Source: Xinhua