African economies remain resilient, despite challenges that are testing worldwide economies.
According to the latest African Development Bank Group’s African Economic Outlook, 41 countries in the continent were projected to experience stronger growth rates in 2024 than they did in 2023.
The report unveiled during the ADB Annual Meetings in Nairobi described Africa’s growth potential as ‘remarkable’ and the continent will retain its 2023 ranking as the second fastest-growing region after developing Asia in 2024 and 2025.
The report further showed that the rebound in Africa’s average growth includes a rise to 3.7 percent in 2024 and 4.3 percent in 2025, exceeding the projected global average of 3.2 percent.
Of this figure, 17 African economies were projected to grow by more than 5 percent in 2024. The number could rise to 24 in 2025, as the pace of growth accelerates.
This growth trajectory is expected to surpass pre-2023 levels, with East Africa leading as the fastest-growing region (up to 3.4 percentage points). Other regions are also projected to witness moderate to robust growth.
ADB President Dr Akinwumi Adesina said while the Bank was proud of the growth projections of many African countries as reflected in the report, it was not blind to the challenges.
“Africa’s future is bright, but need to make sure we tackle governance, transparency, accountability, and management of our natural capital. We need to make sure resources are used for the benefit of the people of this continent,” he said noting that this kind of resilience could not happen “unless we deal with the issue of climate change”.
He added: “We must make sure we are investing in our young people in their skills, talents, entrepreneurship, and giving them tools like what we are doing with the Youth Entrepreneurship Investment Banks.”
In a presentation, Chief Economist and Vice President of the African Development Bank Prof Kevin Chika Urama underscored why strategic policies and firm political commitment are key to the effective use of resource wealth for domestic revenue generation.
He described hard infrastructure, including roads, railways, and bridges, and soft infrastructure, including knowledge and institutional governance capacity, as “two wings of an aircraft”.
“Investing in productive infrastructure is key to accelerating Africa’s structural transformation,” he said.
Growth prospects vary across Africa’s regions, reflecting differences in economic structure, commodity dependence, and policies.
East Africa, the continent’s fastest-growing region, will see real GDP growth rising from an estimated 1.5 percent in 2023 to 4.9 percent in 2024 and 5.7 percent in 2025.
The African Economic Outlook 2024 has called for an overhaul of the global financial architecture to transform African economies.
This includes giving Africa a greater voice in multilateral development banks and international financial institutions, reflecting its growing share of global gross domestic product and rich natural resources.
Dr. Adesina said, “Let’s be clear. By seeking to transform the global financial architecture, Africa is just asking for a fair share of access and availability of resources to build on our vast economic opportunities.”
According to the report, “Domestic resource mobilization is good, but so is the prudent use of such resources and Countries should therefore strengthen capacity to improve public finance management.”
Every year, the African Economic Outlook report provides timely evidence and analysis crucial for African policymakers, empowering them to make informed decisions.
By Wangari Ndirangu
