The World Bank has estimated a 5.5 percent economic growth for Africa in the coming year, as significant public and private sector investment inflows into the continent remains on a high.

This is a lift from the bank’s previous prediction of 5.1 percent made early this year on, also revealing an increased growth forecast of 4.9 percent, notably higher than its 4.2 forecast for 2012, emphasizing the continent’s attractiveness for investment.

“The implications of the increase in base rates are an increase in the cost of raising capital for developing countries, including those in Sub-Saharan Africa, with deleterious consequences on investment and growth,” revealed a World Bank’s bi-annual ‘Africa’s Pulse’ report.

Despite Africa’s growing positive outlook on the international stage, its streamlined commodity basket, poses the major threat to country’s quest for economic development, as a fall in market prices – mostly for crude oil – will kickstart an economic downturn.

“High dependence on one or a few commodities makes Africa’s resource-rich countries vulnerable to sharp movements in prices of these commodities,” said World Bank Africa economist Punam Chuhan-Pole, the report’s author.

With an increase in infrastructure investment in key economic sectors such as power and transportation by leading economic states including Nigeria, Ghana, Ethiopia and Kenya, FDI is expected to rise significantly, with estimations currently placed at 24 percent (or $40 billion).

This growth however has to be matched with an improvement in living standards – a significant drop in the poverty level across the continent.