Africa’s economy to grow in 2023, 2024

According to the African Development Bank (AfDB), Africa’s economic growth will accelerate in 2023 and 2024 as global monetary policy tightens.

The continent’s GDP growth is projected to rise to 4% this year and 4.3% in 2024 after a 3.8% expansion last year, the AfDB said in its annual African Economic Outlook on Wednesday.

However, the Outlook indicates that GDP growth is still below the 4.8% expansion in 2021, the AfDB added, noting that South Africa’s economy will plummet despite this growth.

Growth in the continent’s southern region is projected to slow sharply to 1.6% this year from 2.7% last year, dragged down by poor economic performance in South Africa, where scheduled power cuts of up to 10 hours a day have stymied the economy.

AfDB President Akinwumi Adesina called for “cautious optimism” in the face of risks including high global interest rates and a strong dollar while the continuing war in Ukraine could worsen food insecurity and push up prices further.

The AfDB forecasts the continent’s most industrialised economy to grow by 0.2% in 2023 and 1.5% in 2024.

“Average African inflation is set to accelerate again this year to 15.1%, from 14.2% in 2022,” the report showed.

The average debt-to-GDP ratio in Africa is expected to be 66% this year and 65% next year, the AfDB said, noting a rise in domestic debt.

“Domestic debt restructuring, therefore, should be part of the negotiations for the resolution of public debt crises in countries facing heightened risks,”the report showed.