Faith Nyasuguta
According to the latest African Economic Outlook from the African Development Bank Group, 41 African countries are expected to experience stronger growth rates in 2024 compared to 2023.
At the Bank’s Annual Meetings in Nairobi on Thursday, a report revealed Africa’s ‘remarkable’ growth potential. The continent is set to maintain its 2023 position as the second fastest-growing region, trailing only developing Asia, through 2024 and 2025.
African Development Bank President Akinwumi Adesina expressed pride in the positive growth projections for many African countries but acknowledged the significant challenges the continent faces.
He emphasized the need to address governance, transparency, accountability, and the management of natural resources. “Africa’s future is bright, but we need to ensure resources are used for the benefit of the people,” Adesina stated. He stressed the importance of tackling climate change, noting, “The kind of resilience we are talking about cannot happen unless we deal with the issue of climate change.”
Adesina also highlighted the necessity of investing in Africa’s youth. “We must make sure we are investing in our young people in their skills, talents, entrepreneurship, and giving them tools. That is why I am excited about what we are doing with the Youth Entrepreneurship Investment Banks,” he added.
The African Economic Outlook report forecasts a rebound in Africa’s average growth to 3.7% in 2024 and 4.3% in 2025, surpassing the projected global average of 3.2%.
East Africa, the fastest-growing region on the continent, is expected to see real GDP growth rise from an estimated 1.5% in 2023 to 4.9% in 2024 and 5.7% in 2025. Central Africa’s growth is predicted to moderate from 4.3% in 2023 to 4.1% in 2024 before improving to 4.7% in 2025, driven by stronger growth in Chad and the Democratic Republic of Congo due to favorable metal prices.
West Africa is projected to accelerate its growth from an estimated 3.6% in 2023 to 4.2% in 2024, stabilizing at 4.4% in 2025. This reflects stronger growth in major economies like Cote D’Ivoire, Ghana, Nigeria, and Senegal.
In contrast, North Africa’s growth is expected to decline from an estimated 4.1% in 2023 to 3.6% in 2024, before rebounding to 4.2% in 2025. Except for Libya and Mauritania, all other countries in the region have seen downward revisions in growth forecasts.
Southern Africa is anticipated to see a modest increase in growth from an estimated 1.6% in 2023 to 2.2% in 2024, firming up to 2.7% in 2025. The upgraded forecast for South Africa offsets the combined effect of downward revisions in Angola, Botswana, Lesotho, Zambia, and Zimbabwe.
Despite these positive projections, the report warns that Africa is not on track to meet almost all of the Sustainable Development Goals by 2030. It argues that without corrective action, including reversing the steepening poverty curve, Africa could be home to nearly 87% of the world’s extreme poor by 2030.
RELATED:
