The International Monetary Fund (IMF) has highlighted that incomes in Sub-Saharan Africa are falling further behind the rest of the world amidst a “tepid” economic recovery.
Despite an anticipated growth rate of 3.8% for the region this year, up from 3.4% in 2023, Sub-Saharan Africa continues to grapple with various challenges, including geopolitical tensions, domestic instability, and climate change risks.
While economic conditions have improved for many countries in the region, with nations like Ivory Coast, Benin, and Kenya issuing international bonds and median inflation declining to 6% in February from nearly 10% the previous year, political instability remains a concern.
South Africa, facing ongoing challenges such as power cuts and infrastructure issues, is projected to grow by only 0.9% this year, with electoral uncertainties potentially disrupting energy sector reforms. Nigeria, West Africa’s largest economy, is expected to grow by 3.3% amidst struggles with high inflation and currency and subsidy reforms.
However, some countries in the region show promising growth prospects, such as Niger, forecasted to experience a significant growth surge from 1.4% to 10.4% this year due to increased oil exports.
Source: Reuters