UPDATE 1-African econ growth seen rising to 5.9 pct-AfDB

By Charles Mangwiro

MAPUTO, May 11 (Reuters) - African economic growth is expected to rise to 5.9 percent in 2008 and 2009 from 5.7 percent in 2007, buoyed by natural resources, the African Development Bank (AfDB) said on Sunday.

"The outlook for much of Africa continues to be highly favourable. Oil exporting countries are outpacing others by a substantial margin," it said in its African Economic Outlook report, issued ahead of its annual meeting.

"Economic activity in Africa is estimated to have risen by 5.7 percent in 2007, and is expected to remain high, at 5.9 percent in both 2008 and 2009," it said.

Oil production in Angola increased by 20 percent in 2007 versus 13.1 percent in 2006. Although production fell by 5.6 percent last year in Nigeria, GDP is expected to rise to 6.2 percent this year, on the back of stability in the Niger Delta region.

South Africa's economy was expected to slow to 4 percent largely due to turmoil in global markets and a power shortage.

The AfDB Group warned that surging global food and oil prices would hit countries with higher levels of poverty.

"The shock relating to the high energy and food prices, presents a more serious threat to Africa, these large and sudden prices have now started to have severe implications in many Africa countries", AfDBs Chief Economist Louis Kasekende told Reuters in an interview.

He said increased inflationary pressures from higher food and energy prices were threatening fiscal stability and the AfDB would give financial assistance to some countries to produce more food and cut European and American imports.