West Africa’s Growth Projections in 2024-2025

The sub-Saharan African economy is gradually improving, with economic activity tepidly picking up. Nearly two-thirds of countries on the continent anticipate higher growth in 2024, according to the International Monetary Fund (IMF). 世界银行 latest Africa’s Pulse report attributes the anticipated economic rebound to a potential increase in private consumption and declining inflation across the continent. The report further projects the anticipated growth to accelerate from a low of 2.6% in 2023 to 3.4% in 2024 if not impacted by uncertain global economic conditions, growing debt service obligations, frequent natural disasters, and escalating conflict and violence.??

This is supported by the #IMF's projection that economic growth on the continent will rise from 3.4 percent in 2023 to 3.8 percent in 2024 in its recent Regional Economic Outlook for Sub-Saharan Africa.??

Economic Outlook for West African Markets??

For West Africa, despite witnessing economic turbulence in the past few years, driven by successive shocks, the African Development Bank Group projects strong economic performance for the region, as reported in the bank’s Africa’s Macroeconomic Performance and Outlook 2024.??

Although average GDP growth in West Africa decelerated to 3.8% in 2022 from 4.4% in 2021 and 2022 except in few countries like Cabo Verde, The Gambia, Guinea, Mali, and Niger, which recorded growth, the AFDB anticipates growth in all the countries in the region from 3.2 percent in 2023 to at least 4 percent in 2024 and 4.4 percent in 2025 except for Nigeria and Ghana. this is in line with the World Bank projection that economic activity in the West African Economic and Monetary Union (WAEMU) is projected to increase by 5.9% in 2024 and 6.2% in 2025 due to the solid performances of Benin, C?te d’Ivoire, Niger, and Senegal.

Niger, for instance, is projected to record strong economic performance driven by hydrocarbon production and exports, with growth anticipated to rise from an estimated 4.3 percent in 2023 to 11.2 percent in 2024. Senegal’s economy's growth is projected to rise from an estimated 4.1 percent in 2023 to 8.2 percent in 2024. Growth in C?te d’Ivoire is projected to reach 6.8 percent in 2024, supported by increased private sector-led construction and strong public investment in strategic infrastructure, public facilities, and industrial development.???

Greater agricultural output, expansion in the services sector, and reforms to strengthen private sector participation in energy and mining are expected to drive growth in #Benin by 6.4 percent; #Gambia is expected to witness 6.2 percent; Togo (6 percent); #Mali (4.8 percent); Sierra Leone (4.6 percent); and Burkina Faso economy is projected to grow by 4.1 percent.?

Investment Opportunities in West African Markets for 2024?

West Africa is rich in natural resources and offers a wide range of investment opportunities. Some popular sectors for investment include mining, oil and gas, real estate, technology, and infrastructure. The region is made up of many resource-rich countries that export commodities, such as oil in Gabon, Nigeria, and the Republic of the Congo; C?te d’Ivoire and Ghana offer opportunities for investments in cocoa processing; and the abundance of cotton in Benin and Burkina Faso offers investment in garment production.??

In addition to these, the mining industry in Africa is a major contributor to the continent’s economic growth. With abundant deposits of precious metals and minerals, the oil and gas industry also offers investment opportunities, as the region has significant reserves of oil and natural gas.??

The real estate sector is another thriving area that offers investment opportunities in the sub-region, with an increasing demand for both residential and commercial properties. Infrastructure development is also a key area for investment in Africa, with many opportunities in transportation, construction, and renewable energy.?

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