•The report, indicates that 41 African countries are expected to experience stronger growth rates in 2024 compared to 2023.
•West Africa's growth is forecast to increase from an estimated 3.6 per cent in 2023 to 4.2 per cent in 2024 and 4.4 per cent in 2025.
Image: PCS
East Africa is projected to lead GDP growth on the continent, amidst global challenges, according to the African Development Bank Group’s African Economic Outlook 2024 report.
The region is expected to record the fastest growth with real GDP growth rising from an estimated 1.5 per cent in 2023, to 4.9 per cent in 2024, and 5.7 per cent in 2025.
However, the economic uncertainties in South Sudan and Sudan due to conflict have led to a downward revision of 0.2 percentage points for 2024, due to larger-than-expected contractions in the two states.
The report indicates that 41 African countries are expected to experience stronger growth rates in 2024 compared to 2023.
Describing Africa’s growth potential as “remarkable,” it highlights that the continent will retain its position as the second fastest-growing region after developing Asia through 2024 and 2025.
African Development Bank president Akinwumi Adesina, acknowledged the positive growth projections while emphasising the importance of addressing governance, transparency, accountability, and the management of natural resources.
“Africa’s future is bright, but we need to ensure that resources are used for the benefit of the people of this continent. Resilience cannot happen unless we deal with climate change,” he said.
Adesina also highlighted the importance of investing in young people, their skills, talents, and entrepreneurship, mentioning initiatives like the Youth Entrepreneurship Investment Banks.
Despite these positive outlooks, the report warns that Africa is off track to meet most of the Sustainable Development Goals by 2030, with a sharp increase in poverty unless corrective actions are taken.
The AEO forecasts a rebound in Africa’s average growth, with an expected rise to 3.7 per cent in 2024 and 4.3 per cent in 2025, surpassing the projected global average of 3.2 per cent.
Seventeen African economies are projected to grow by more than five per cent in 2024, potentially increasing to 24 by 2025.
Other regions are also projected to see moderate to robust growth.
Central Africa's growth is expected to moderate from 4.3 per cent in 2023 to 4.1 per cent in 2024 before rising to 4.7 per cent in 2025.
West Africa's growth is forecast to increase from an estimated 3.6 per cent in 2023 to 4.2 per cent in 2024 and 4.4 per cent in 2025.
North Africa's growth is projected to decline slightly from 4.1 per cent in 2023 to 3.6 per cent in 2024 and then rise to 4.2 per cent in 2025. Southern Africa is expected to see slight growth increases from 1.6 per cent in 2023 to 2.2 per cent in 2024 and 2.7 per cent in 2025.
The African Economic Outlook 2024 calls for a comprehensive overhaul of the global financial architecture to better support Africa’s economic transformation.
The report proposes greater private sector participation, streamlined climate finance, reforms to multilateral development banks, expedited debt resolution mechanisms, and enhanced domestic resource mobilization.
Adesina emphasised that Africa is seeking a fair share of global resources to build on its economic opportunities.
The report points out the inadequacies of the current financial system in closing Africa’s financing gap for structural transformation, estimated at $402.2 billion annually until 2030.