THE African Development Bank (AfDB) has revealed that Africa is poised for substantial economic growth in 2024, with eleven of its nations expected to rank among the world’s top 20 fastest-growing economies for the year. This revelation comes from the bank’s latest Macroeconomic Performance and Outlook (MEO) report, released on February 16.
According to the report, Africa is projected to experience a real gross domestic product (GDP) growth averaging 3.8 percent in 2024, surpassing the global average projection of 2.9 percent. Additionally, the continent’s GDP is anticipated to further increase to 4.2 percent in 2025, outpacing the global average growth of 3.2 percent. This growth trajectory solidifies Africa’s position as the second-fastest-growing region globally, following Asia.
AfDB President Akinwumi Adesina emphasised the need for increased financing and policy interventions to bolster Africa’s growth amidst a challenging global economic landscape. Adesina stated, ‘Despite the challenging global and regional economic environment… to further boost Africa’s growth.’ He underscored the importance of fiscal consolidation and strategic investments to sustain this momentum.
The report also identifies various risks to Africa’s economic outlook, such as geopolitical tensions, regional conflicts, and political instability, which could disrupt trade and investment flows. However, Adesina noted that fiscal deficits have improved, attributing this to a faster-than-expected recovery from the pandemic and fiscal consolidation measures implemented by African nations.
Moreover, the MEO report stresses the significance of economic integration for Africa’s future, advocating for a robust internal trade market to enhance competitiveness globally. Ambassador Albert Muchanga of the African Union Commission echoed this sentiment, highlighting the importance of intra-African production and value-added goods. Muchanga stated, ‘The future of Africa rests on economic integration… ensure value-added and intra-African production.’
As policymakers strategise for sustained growth, Kevin Urama, Chief Economist and Vice President of the African Development Bank, emphasised the role of structural reforms and strategic industrial policies in driving economic diversification and strengthening the export sector. Urama added, ‘Growth in Africa’s top-performing economies has benefitted from a range of factors.’
Looking ahead, the report calls for cautious optimism while urging African countries to prioritize long-term sustainable development. This sentiment was echoed by Jeffrey Sachs of Columbia University, who stressed the need for affordable long-term financing to support Africa’s growth aspirations. Sachs stated, ‘Long-term development cannot be based on short-term loans.’
As Africa navigates through global uncertainties, the collective efforts of policymakers, backed by strategic investments and sound economic policies, aim to propel the continent towards a path of sustainable and inclusive development.
