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This is the fourth edition of the report which assesses economic developments and prospects for the African continent based on indepth country studies of 29 countries (which account for 85 per cent of Africa's population and 90 per cent of its economic output). This edition also examines the financing of small and medium-sized enterprises (SMEs). Overall, during 2004, economic activity is estimated to have risen by over five per cent, inflation levels reached historical lows and trade balances improved. While some countries continue to face severe problems, such as the humanitarian crisis in the Darfur region of Sudan and the economic collapse in Zimbabwe, prospects for many countries are more favourable than they have been for many years. However, although the continent has benefitted from increased development aid levels, with the launch of NEPAD and the implementation of the Heavily Indebted Poor Country initiative, it is expected that only six African countries, most of them in North Africa, will meet the key Millennium Development Goals (MDG) target of halving the share of the population living on less than one dollar a day.