African economies in 2024 are expected to grow by 3.4%, a new World Bank report is predicting. But that recovery is not enough to reduce the burden of extreme poverty experienced by about 429 million people on the continent.
The report titled Africa’s Pulse, a biannual survey of African economies says the projected recovery is primarily driven by greater private consumption growth as declining inflation had boosted the purchasing power of household incomes.
“After bottoming out at 2.6 percent in 2023, economic growth in Sub-Saharan Africa is
expected to reach 3.4 percent in 2024 and 3.8 percent in 2025. The contribution
of the global economy to Africa’s growth will remain modest. Expectations of monetary policy rate cuts in large global economies may stimulate investment growth in 2025,” the report said.
Despite the projected boost in growth, the report notes that the pace of economic expansion in the region remains below the growth rate of the previous decade (2000-2014), therefore making it insufficient to have a significant effect on poverty reduction.
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To address the challenges of growth inequality and reducing poverty, the report proposes several policy actions aimed at restoring macroeconomic stability, promoting inter-generational mobility, and supporting market access.
However, the World Bank highlights that fiscal policy alone is insufficient to revitalize growth and accelerate poverty reduction. Policymakers are urged to ensure that fiscal policies do not overburden the poor.
“Structural inequalities in Sub-Saharan Africa require multisectoral actions—particularly
policies to create a level playing field and enhance the productive capacity of the
disadvantaged,” it noted.
