AfDB Expects Africa's Economic Growth to Rise to 4.3% in 2024

The African Development Bank (AfDB) expected an increase in economic growth in Africa during the years 2023 and 2024 amid the tightening of global monetary policy and the repercussions of the Russian-Ukrainian war, explaining that the economic growth of South Africa is expected to decrease.

The African bank stated in its annual report on the prospects for the African economy Wednesday, that it is expected that the continent’s GDP growth will rise to 4% in 2023 and about 4.3% in 2024, but it indicated that the GDP growth is still less than 4.8% in 2021.

RECAP

With substantial lithium deposits in several countries across the continent, "Africa must set itself up to manufacture lithium-ion batteries to tap into the over $ trillion market for #electricvehicles," says President Akinwumi Adesina at #AfDBAM2023.

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— African Development Bank Group (@AfDB_Group) May 24, 2023

AfDB President Akinwumi Adesina called for "cautious optimism" in the face of risks including high global interest rates and a strong dollar, while the ongoing war in Ukraine could exacerbate food insecurity and raise prices.

Growth in the southern region of the continent is expected 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 outages of up to 10 hours a day have hampered the economy.

In a sharp downward revision, the African Development Bank now expects the continent's most industrialized economy to grow just 0.2% in 2023 and 1.5% next year.

Insights from #AfDBAM2023's Africa Pharmaceutical Technology Foundation session highlight Africa's urgent need to prepare for future pandemics. Have a look at the photo recap https://t.co/baoIhu0MZS pic.twitter.com/EddAgAoldr

— African Development Bank Group (@AfDB_Group) May 24, 2023

The report confirmed that average inflation in Africa is set to accelerate again this year to 15.1% from 14.2% in 2022.

It added that the average debt-to-GDP ratio in Africa is expected to reach 66% this year and 65% next year, pointing to the rise in domestic debt.

The African Development Bank report states that "domestic debt restructuring should therefore be part of negotiations to resolve public debt crises in countries facing increased risks."