The African Development Bank, AfDB, anticipates that Africa’s real Gross Domestic Product, GDP growth will average 3.8% in 2024, rising to 4.2% in 2025.
This projection exceeds the global averages of 2.9% and 3.2% for the same period, positioning Africa as the second-fastest-growing region worldwide after Asia.
The report highlights key African countries expected to experience robust economic performance, including Niger 11.2%, Senegal 8.2%, Libya 7.9%, and Rwanda,7.2%.
Additionally, Cote d’Ivoire, Ethiopia, Benin, Djibouti, Tanzania, Togo, and Uganda are all projected to achieve significant growth rates, ranging from 6% to 6.8%.
Dr. Akinwumi Adesina, President of AfDB, emphasized the need for greater financing and policy interventions to further stimulate Africa’s growth amidst global and regional economic challenges.
The biannual release of Africa’s Macroeconomic Performance and Outlook provides an evidence-based assessment of the continent’s recent economic performance and short-to-medium-term outlook amid dynamic global economic developments.
Adesina underscored the importance of cautious optimism in light of rising geopolitical tensions, regional conflicts, and political instability, which could disrupt trade and investment flows and perpetuate inflationary pressures.
Despite improvements in fiscal deficits, fueled by a faster-than-expected recovery from the pandemic, Africa’s fiscal positions remain vulnerable to global shocks.
Prof. Kevin Urama, AfDB’s Chief Economist and Vice President, attributed the growth in Africa’s top-performing economies to factors such as economic diversification, strategic investments, rising consumption, and positive developments in export markets.
Amb. Albert Muchanga, the Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals at the African Union Commission, emphasized the importance of economic integration for Africa’s future, advocating for enhanced intra-African trade to drive value-added production.
The report’s findings and recommendations will inform African heads of state and contribute to the African Union’s proposals to the G20, aiming to secure long-term, affordable financing for Africa’s sustainable growth.
Prof. Jeffrey Sachs, Director of the Centre for Sustainable Development at Columbia University, stressed the need for Africa to achieve growth rates of 7% or higher annually, emphasizing the importance of long-term financing and unity among African nations to secure favorable terms from creditors.
