Cover -- Contents -- Abbreviations -- Executive Summary -- I. Overview -- Main Developments in 2007 -- Macroeconomic Policies -- Outlook for 2008 and Risks -- Medium-Term Challenges: Unleashing the Private Sector and Reducing the Cost of Doing Business -- Appendix 1.1 -- II. Monetary and Exchange Rate Policies in Sub-Saharan Africa -- The Monetary and Exchange Rate Landscape -- Policy Challenges of Implementing Monetary and Exchange Rate Regimes in Sub-Saharan Africa -- Conclusions -- III. Private Capital Flows to Sub-Saharan Africa: Financial Globalization's Final Frontier? -- Recent Trends in Capital Flows to Sub-Saharan African Countries -- Factors Influencing Capital Flows in Sub-Saharan Africa -- Evidence from Country Case Studies -- Lessons and Policy Agenda for Sub-Saharan Africa -- Appendix 3.1 -- IV. Africa's Power Supply Crisis: Unraveling the Paradoxes -- Africa's Power Sector in International Perspective -- Africa's Acute Power Problems -- The Way Forward -- Statistical Appendix -- Sub-Saharan Africa: Country Groupings -- Data and Conventions -- List of Tables -- References -- Publications of the IMF African Department, 2004-08 -- Boxes -- 1.1. Sub-Saharan Africa and the Global Slowdown -- 1.2. Economic Crisis in Zimbabwe -- 1.3. The Changing Nature of Public Debt in Sub-Saharan Africa -- 1.4. The Impact of High Oil Prices on Sub-Saharan Africa -- 1.5. Conflicts and Political Instability in Sub-Saharan Africa: Growth and Spillover Effects -- 1.6. Creditor Rights in Sub-Saharan Africa -- 2.1. Inflation Objectives for Sub-Saharan African Low-Income Countries -- 2.2. The Monetary Transmission Mechanism in Sub-Saharan Africa -- 2.3. Assessing Reserve Money Targeting in Sub-Saharan Africa -- 2.4. The Role of Money -- 2.5. Mozambique and Uganda: Adding Flexibility to Monetary Policy -- 2.6. Inflation Targeting in Ghana.

2.7. Inflation Targeting: A Benchmark for Monetary Policy in Managed Floats -- 2.8. Analytic Frameworks for Monetary Policy in Low-Income Countries -- 3.1. Transition to Emerging Market Status: Where Does Africa Stand? -- 3.2. Domestic Determinants of Private Capital Inflows to Sub-Saharan African Countries -- 3.3. Are Capital Flows Good for Growth? -- 3.4. Recent Cross-Border Banking Investments -- 3.5. The Foreign Private Capital Capacity-Building Program -- 4.1. Introducing the Africa Infrastructure Country Diagnostic -- 4.2. Regional and Economic Effects of South Africa's Power Supply Crisis -- Tables -- 1.1. Sub-Saharan Africa: Selected Indicators, 2003-08 -- A1.1. Categorization of Sub-Saharan African Countries -- A1.2. Non-Oil Primary Fiscal Deficits, 2002-07 -- 2.1. De Jure Monetary Policy Frameworks in Sub-Saharan Africa -- 3.1. Private Capital Flows' Volatility, 2000-07 -- 3.2. Private FDI and Portfolio Inflows and Capital Market Development -- A3.1. Controls on Portfolio Investments and FDI in Selected African Countries -- A3.2. Capital Account Liberalization Process in Case-Study Countries -- A3.3. Case Study Countries: Challenges and Policy Responses -- 4.1. Emergency Power Generation in Sub-Saharan Africa -- 4.2. Private Participation Power Sector Transactions in Sub-Saharan Africa -- 4.3. Power Sector Expenditure -- 4.4. Annualized Power Sector Expenditure Requirements to 2015 -- Figures -- 1.1. A Comparison of Growth -- 1.2. Growth in Sub-Saharan Africa -- 1.3. Regional Dynamics of Growth -- 1.4. Contribution to GDP Growth -- 1.5. Growth Volatility -- 1.6. Real Per Capita GDP Growth -- 1.7. Sub-Saharan Africa: Oil Exporters -- 1.8. Sub-Saharan Africa: Trading Gains (Losses) -- 1.9. Inflation in Sub-Saharan Africa -- 1.10. Sub-Saharan Africa: External Current Account Balance -- 1.11. Commodity Prices in Sub-Saharan Africa.

1.12. Three-Month Interbank Rates in Selected Emerging Markets -- 1.13. Monetary Developments -- 1.14. Real Effective Exchange Rates in Sub-Saharan Africa -- 1.15. Real Effective Exchange Rates in the CEMAC and the WAEMU -- 1.16. Sub-Saharan Africa: Reserve Coverage -- 1.17. Credit to the Private Sector in Sub-Saharan Africa -- 1.18. Real Effective Exchange Rates in Sub-Saharan African Countries with a Floating Regime -- 1.19. Sub-Saharan Africa: 2007 Exchange Rate Adjustments and Current Account Balances -- 1.20. Central Government Revenues in Sub-Saharan Africa -- 1.21. Central Government Primary Expenditures in Sub-Saharan Africa -- 1.22. Central Government Social Spending in Sub-Saharan Africa -- 1.23. Low-Income Sub-Saharan Africa: Government Financing of Fiscal Deficits -- 1.24. Total Government Debt in Sub-Saharan Africa -- 1.25. Oil Prices and GDP Growth in Sub-Saharan Africa -- 1.26. Exports and Growth in Sub-Saharan Africa -- 1.27. Sub-Saharan Africa: Growth and Commodity Prices -- 1.28. Growth Prospects in Sub-Saharan Africa -- 1.29. Sub-Saharan Africa: Reserve Coverage for Terms of Trade Shocks, 2007 -- 1.30. Sub-Saharan Africa: Doing Business, 2007 -- 1.31. Sub-Saharan Africa: Global Competitiveness Index, 2007 -- 1.32. Sub-Saharan Africa: Governance Ranking, 2000-06 -- 2.1. Sub-Saharan Africa: Exchange Rate Distribution, 2005-07 -- 3.1. Sub-Saharan Africa: Capital Inflows, 2000-07 -- 3.2. Sub-Saharan Africa: Capital Inflows, 2000-07 (Annual Averages) -- 3.3. Sub-Saharan Africa: Total Private Capital Inflows, 2000-07 -- 3.4. Sub-Saharan Africa: Capital Inflows, Current Account, and Reserves, 2000-07 -- 3.5. Sequencing of Capital Account Liberalization -- 3.6. Selected Sub-Saharan African Countries: Composition of Capital Flows -- 4.1. Evolution of Power Infrastructure in Sub-Saharan Africa Relative to Other Regions.

4.2. Electricity Prices and Consumption in Sub-Saharan Africa Relative to Other Regions -- 4.3. Countries Affected by Acute Power Sector Crises in 2007 -- 4.4. Drivers of Operating Costs for Sub-Saharan African Power Systems -- 4.5. Electricity Costs and Revenues by Type of Power System (US/kwh) -- 4.6. Average Power Sector Revenue and Various Cost Benchmarks -- 4.7. Electricity Service Coverage in Sub-Saharan Africa -- 4.8. Electricity Service Expenditure in Sub-Saharan Africa -- 4.9. Evaluation of Power Sector Reform -- 4.10. State-Owned Enterprise Governance Characteristics -- 4.11. Frequency Distribution of Power Sector Efficiency Indicators -- 4.12. Hidden Costs of Power Sector Inefficiency -- 4.13. Long-Term Trends in External Finance for the Sub-Saharan African Power Sector.