The African Development Bank (AfDB) released its annual report on Friday, revealing a notable decline in Africa’s economic growth, which fell to 3.2% in 2023 from 4.1% the previous year.
Despite the setback, the bank projected a rebound in growth for most regions in 2024, except for central Africa.
Several factors contributed to the economic slowdown, including political instability, China’s economic deceleration, and the ongoing impacts of COVID-19 and Russia’s war in Ukraine.
The final growth figure for 2023 was lower than the AfDB’s initial forecast of 3.4%, with central and north Africa particularly affected by recessions in Equatorial Guinea and challenges such as flooding in Libya.
However, amidst these challenges, the report highlighted that 15 African countries managed to achieve economic growth rates exceeding 5% in 2023. Countries such as Ethiopia, Ivory Coast, Democratic Republic of Congo, Mauritius, and Rwanda were among those showing resilience.
Looking ahead, the AfDB forecasted a faster growth trajectory for most regions in 2024, except for southern Africa, which is expected to grow at 2.2%, with South Africa’s sluggish performance being a significant factor.
South Africa, facing economic stagnation aggravated by persistently high unemployment, poverty, and inequality, is projected to grow by only 1.1% in 2024.
Nigeria, the largest economy in West Africa, is set to experience modest growth of 2.9% in 2024, slightly up from the previous year. However, the country faces challenges due to a sharply devalued currency, which has contributed to rising inflation and a cost of living crisis.
Similarly, Egypt is expected to see its growth slow down to 3.7% in 2024, compared to 4% in 2023, primarily due to high inflation rates and foreign exchange shortages.