A total of 15 African countries have posted output expansions of more than 5% despite the challenging global and regional economic environment, according to the African Development Bank (AfDB).
The Bank said in a report that countries including Ethiopia, which is restructuring its external debt, Ivory Coast, the Democratic Republic of the Congo, Mauritius, and Rwanda, have achieved significant economic growth.
Africa’s average gross domestic product declined to 3.2% in 2023, down from 4.1% in 2022.
However, the Bank expects higher growth this year in all regions except Central Africa.
The Bank explained: “The shocks buffeting African economies since 2020 have damaged growth, with long-term implications.”
It said recovery suffered several setbacks, including the damaging long-term effects of the COVID-19 pandemic, Russia’s invasion of Ukraine on food and energy prices, and China’s sluggish recovery from the pandemic.
The Bank lowered its estimates for regional growth in Central and North Africa amid the persisting economic recession in Equatorial Guinea and the repercussions of devastating floods in Libya.
It expected growth to accelerate in all regions except Central Africa in 2024, while the southern part of the continent remains at the bottom of the list with growth of 2.2% compared to 5.7% in East Africa.
The Bank said the slow performance of the South African economy reflects the ongoing economic stagnation in the south of the continent, as the largest economy in the region is expected to grow 1.1% in 2024, up from 0.8% last year.
South Africa is scheduled for elections later this year.
“The underwhelming economic situation has aggravated the country’s persistently high unemployment, poverty, and inequality and prevented it from reaping democratic dividends in the 30 years since the end of white minority rule.”
Nigeria, the largest economy in West Africa, is expected to record growth of 2.9% in 2024, a 0.4% point increase from last year, as the sharp devaluation of the currency led to a rise in inflation, which deepened the crisis of the high cost of living.
In Egypt, high inflation and a shortage of foreign currency are expected to cause growth to decline to 3.7% this year compared to 4% in 2023.
