Real Gross Domestic Product (GDP) growth for Africa is expected to average 3.8 percent and 4.2 percent in 2024 and 2025.
This was stated by the African Development Bank (AfDB) in its latest Macroeconomic Performance and Outlook (MEO) report.
In a statement published on the Bank’s website, this is higher than the projected global averages of 2.9% and 3.2%, according to the report.
According to the report, the continent is set to remain the second fastest growing region after Asia.
“The top 11 African countries predicted to show strong economic performance forecasts are Niger (11.2 percent), Senegal (8.2 percent), Libya (7.9 percent) and Rwanda ( 7.2 percent)’.
“Others are Ivory Coast 6.8%, Ethiopia 6.7%, Benin 6.4%, Djibouti with 6.2%, Tanzania with 6.1%, Togo 6% and Uganda by 6%,” the report said.
It quotes Akinwumi Adesina, AfDB President, as saying “Despite the challenging global and regional economic environment, 15 African countries have recorded output growth of more than 5 percent.”
Mr. Adesina therefore called for larger funding pools and several policy interventions to further boost Africa’s growth.
The News Agency of Nigeria (NAN) reports that Africa’s Macroeconomic Performance and Outlook is a semi-annual publication published in the first and third quarters of each year.
It complements the existing African Economic Outlook (AEO), which focuses on key emerging policy issues related to the continent’s development.
The MEO report provides an updated evidence-based assessment of the continent’s recent macroeconomic performance and short- to medium-term prospects amid dynamic global economic developments.
Mr Adesina said the latest report called for cautious optimism given the challenges posed by global and regional risks.
He listed risks that include rising geopolitical tensions, heightened regional conflicts and political instability, which could disrupt trade and investment flows and perpetuate inflationary pressures.
According to Mr. Adesina, fiscal deficits have improved as the faster than expected and recovery from the pandemic helped boost revenue.
“This led to the average fiscal deficit stabilizing at 4.9 percent in 2023, the same as in 2022, but significantly less than the average fiscal deficit of 6.9 percent in 2020.”
“The stabilization is also due to fiscal consolidation measures, especially in countries with increased risks of distress.”
The AfDB boss said that with the global economy mired in uncertainty, the African continent’s fiscal positions will continue to be vulnerable to global shocks.
![African Development Bank](https://media.premiumtimesng.com/wp-content/files/2021/09/African-Development-Bank.jpg)
![African Development Bank](https://media.premiumtimesng.com/wp-content/files/2021/09/African-Development-Bank.jpg)
“The report shows that medium-term growth prospects for the continent’s five regions are slowly improving, which points to the continued resilience of Africa’s economies.”
Presenting the report’s key findings, AfDB Chief Economist and Vice President Kevin Urama said growth in Africa’s top performing economies benefited from a number of factors.
Mr Urama said the factors include reducing dependence on commodities through economic diversification, increasing strategic investment in key growth sectors, increasing both public and private consumption and positive developments in key export markets.
“Africa’s economic growth is projected to regain moderate strength as long as the global economy remains resilient, deflation continues, infrastructure investment remains buoyant and progress is sustained on debt restructuring and fiscal consolidation,” he said.
For his part, Albert Muchanga, Commissioner for Economic Development, Trade, Tourism, Industry and Minerals of the African Union Commission, said that Africa’s future is based on economic integration.
According to Mr. Muchanga, our small economies are not competitive in the global market. In addition, a healthy intra-African trade market can ensure value addition and intra-African production of manufactured goods.
He said the MEO’s forecasts and recommendations would be made available to African heads of state.
He said the report would be useful when the African Union makes its proposals to the G20 – an informal gathering of the world’s biggest economies to which the union was admitted in 2023.
“The improved growth rate for 2024 reflects concerted efforts by the continent’s policymakers to promote economic diversification strategies focused on increasing investment in key development sectors.
“And the implementation of domestic policies aimed at consolidating fiscal positions and reversing the rise in the cost of living and stimulating private consumption,” Muchanga said.
Also speaking, Zimbabwe’s Minister of Finance and Economic Development, Mthuli Ncube, described the report as “on point” and in line with the reality in his country.
Mr Ncube said it was useful for economic planning across Africa and urged the AfDB to continue its thought leadership to help policymakers continue to build resilience to withstand shocks and drive growth.
He said: “Zimbabwe expects slower growth due to climate shocks in the region. Southern African countries depend on agriculture for economic growth, so climate agriculture is key.
“We are in talks with creditors to restructure its debt, which is slowing economic growth. Domestically, the country will focus on economic and governance reforms and reforms around property rights to increase agricultural production.”
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Meanwhile, Jeffrey Sachs, Director of Columbia University’s Center for Sustainable Development, said that some 41 countries across the continent will achieve an economic growth rate of 3.8 percent in 2024.
Mr Sachs, the professor, said that in 13 of them, growth would be more than one percentage point higher than in 2023.
The Director said long-term affordable finance must be part of Africa’s strategy to achieve growth of 7 percent or more annually.
He warned that Africa was paying a very high risk premium for debt financing and called for this point to be made at the G20.
“Long-term growth cannot be based on short-term loans. Loans to Africa should be at least 25 years or more.
“Short-term borrowing is dangerous for long-term growth. Africa must act as one at scale,” he said.
Mr Sachs, who is also UN Secretary-General Antonio Guterres’ Advocate on the Sustainable Development Goals, also called for a much larger AfDB, with better resources to meet Africa’s financing needs.
(NAN)
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