Africa will remain the second-fastest-growing region in 2024 and 2025 - AFDB

Africa’s future is bright, with the continent projected to retain its position as the second-fastest-growing region in 2024 and 2025. #Growth for the continent is projected to rise to 3.7% and 4.3%, respectively.

Despite challenges and multiple shocks confronting world economies, the continent remains resilient, with 41 countries projected to experience stronger growth rates in 2024 compared to 2023, according to the African Development Bank Group’s latest African Economic Outlook.

Of this figure, the AFDB projects more than a 5 percent growth rate in seventeen economies to surpass pre-2023 levels, with East Africa leading as the fastest-growing region (up to 3.4 percentage points), followed by Southern Africa and West Africa, each rising by 0.6 percentage points.

10 African economies are projected to be among the world’s top 20 fastest-growing economies in 2024, sustaining the trend of the past two decades, according to the report.

Regional Growth Outlook

EAST AFRICA

East Africa is expected to bounce back as Africa’s fastest-growing region, with real GDP growth rising from an estimated 1.5 percent in 2023 to 4.9 percent in 2024 and 5.7 percent in 2025. The downward revision of 0.2 percentage points for 2024 compared with the forecast in January 2024 Africa’s Macroeconomic Performance and Outlook, according to the report, is due to larger-than-expected contractions in #Sudan and South Sudan following the ongoing conflict in Sudan according to the report.

CENTRAL AFRICA

Growth in Central Africa is forecast to moderate from 4.3% in 2023 to 4.1% in 2024 before improving strongly to 4.7% in 2025. The upgraded forecast is due to expectations of stronger growth in #Chad and the Democratic Republic of the Congo as a result of favourable metal prices.

WEST AFRICA

Growth is projected to pick up in West Africa from an estimated 3.6 percent in 2023 to 4.2 percent in 2024, consolidating at 4.4 percent the following year. This is an upgrade of 0.3 percentage points to be driven by stronger growth upgrades in the region’s large economies—C?te d’Ivoire, #Ghana, #Nigeria, and #Senegal.

NORTH AFRICA

Northern Africa is projected to experience a decline from an estimated 4.1 percent in 2023 to 3.6 percent in 2024 and 4.2 percent in 2025, except for a few economies like #Libya and #Mauritania, which have been revised downward for all other countries in the region.

SOUTHERN AFRICA

Southern Africa is projected to pick up slightly from an estimated 1.6 percent in 2023 to 2.2 percent in 2024 and firm up to 2.7 percent in 2025. Due to South Africa’s larger weight in the region, the upgraded growth forecast offset the combined effect of downward revisions in #Angola, #Botswana, #Lesotho, #Zambia, and #Zimbabwe.

While the report sees stronger growth for the continent, it also warns that Africa is off track to meet almost all of the Sustainable Development Goals by 2030. It argues that unless corrective actions such as reversing the steepening poverty curve are taken, the continent will be home to almost 9 out of 10 of the world's extreme poor countries by 2030.

Africa's projected growth rates indicate resilience and potential amidst global challenges. It's promising for markets on the continent poised for stronger growth in 2024 and 2025. This suggests #opportunities for business and #investment that can contribute to the overall progress and prosperity of the continent.

Is your firm eyeing business opportunities in Africa, or are you a business owner interested in entering the #African market? If so, our team of experts can offer you bespoke support and resources to ensure your success in Africa.

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