Africa is set to become the second-fastest-growing region in the world after Asia, according to the latest report by the African Development Bank (AfDB). The continent’s economy is expected to expand at an average rate of 3.8% in 2024 and 4.2% in 2025, surpassing the projected global averages of 2.9% and 3.2%, respectively.
The AfDB’s Macroeconomic Performance and Outlook (MEO) report, released on Friday, attributes this optimistic outlook to the continent’s resilience and recovery from the pandemic, as well as the implementation of the African Continental Free Trade Area (AfCFTA), which is expected to boost intra-African trade and investment.
The report also highlights the top 11 African countries that are projected to experience strong economic performance in 2024. These are Niger (11.2%), Senegal (8.2%), Libya (7.9%), Rwanda (7.2%), Cote d’Ivoire (6.8%), Ethiopia (6.7%), Benin (6.4%), Djibouti (6.2%), Tanzania (6.1%), Togo (6%), and Uganda (6%).
AfDB President Dr. Akinwumi Adesina said that despite the challenging global and regional economic environment, 15 African countries have posted output expansions of more than 5%. He called for larger pools of financing and several policy interventions to further boost Africa’s growth.
Some of the policy recommendations in the report include enhancing domestic resource mobilization, improving the business environment, promoting regional integration, diversifying the sources of growth, and investing in human capital and infrastructure.
The report also warns of some risks and challenges that could hamper Africa’s growth prospects, such as rising geopolitical tensions, increased regional conflicts, political instability, climate change, and debt sustainability issues.
The AfDB’s report echoes the findings of other international organizations that have also predicted a strong rebound for Africa’s economy in 2024. The International Monetary Fund (IMF) forecasts a growth rate of 3.4% for the continent, while the World Bank projects a 3.2% expansion.
The MEO report is a biannual publication that provides an up-to-date evidence-based assessment of the continent’s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments. It complements the existing African Economic Outlook (AEO), which focuses on key emerging policy issues relevant to the continent’s development.
Source: News Digest
