In 2023, Africa experienced a notable economic slowdown, with growth declining to 3.2% from 4.1% in 2022, as reported by the African Development Bank (AfDB) on Friday. The bank attributed this downturn to various factors, including political instability, China’s economic deceleration, the lingering effects of COVID-19, and the repercussions of Russia’s conflict in Ukraine.
Despite the challenges, some African nations managed to maintain robust growth rates. Notably, 15 countries, including Ethiopia, Ivory Coast, the Democratic Republic of Congo, Mauritius, and Rwanda, achieved economic growth rates exceeding 5% in 2023, showcasing resilience amid adversity.
Looking ahead to 2024, the AfDB projected improved growth prospects across most regions except for central Africa. Southern Africa, however, remains a concern with an anticipated growth rate of 2.2%, with South Africa’s sluggish economy being a significant contributor to this stagnation.
South Africa’s economic woes, exacerbated by persistent high unemployment, poverty, and inequality, have hindered the realization of democratic gains since the end of minority rule. Despite national elections on the horizon, the country’s growth outlook remains modest, with a predicted growth rate of 1.1% in 2024.
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In West Africa, Nigeria anticipates a modest growth uptick of 2.9% in 2024, attributed in part to a devalued currency that fuels inflation and exacerbates the cost of living crisis.
Similarly, Egypt faces economic challenges, including high inflation and foreign exchange shortages, which are expected to dampen growth to 3.7% in 2024, down from 4% in 2023.
While Africa grapples with multifaceted economic challenges, there are pockets of resilience and potential for growth, emphasizing the continent’s dynamic and diverse economic landscape amidst global uncertainties.