Africa24.it’s Post

The economic forecast for African countries in 2024 shows promising growth opportunities driven by infrastructure investment and economic diversification. Challenges like debt sustainability and trade barriers need strategic solutions for sustainable development. #AfricanEconomies #EconomicGrowth

According to a report on recent economic and social developments in Africa published by the Economic Commission for Africa (#ECA), African countries are expected to dominate the top 10 fastest-growing economies globally in 2024. #Africa #EconomicGrowth #SocialDevelopment #SDGs #IntraAfricanTrade

The latest Regional Economic Outlook for sub-Saharan Africa highlights diverging growth trends between resource-intensive and non-resource-intensive economies. Resource-intensive countries, particularly fuel exporters, have struggled with slower growth compared to their non-resource-intensive counterparts. Improving governance and business environments, investing in people and infrastructure are crucial for sub-Saharan Africa's resource-intensive economies to diversify and achieve sustained growth. https://lnkd.in/eSRKjPad

Check out our latest analytical note featured in the October 2024 Regional Economic Outlook for Sub-Saharan Africa (SSA): "One Region, Two Paths: Divergence in Sub-Saharan Africa" highlights the divergent growth trajectories within the region as the gap widens between resource-intensive countries (RICs) and non-resource-intensive countries (non-RICs) at the end of the commodity super-cycle in 2014/2015. Over the past decade, growth in RICs has been less than half of that of non-RICs, with fuel exporters disproportionately affected. The terms-of-trade shock has been compounded by persistent issues such as inadequate infrastructure and governance challenges, along with a tendency towards pro-cyclical fiscal policies that leave little room for governments to manage periods of low commodity export prices. Our analysis indicates that countries with stronger governance are better equipped to absorb terms-of-trade shocks compared to those with weaker governance. Joint work with Nikola Spatafora,Saad Quayyum, and Sanghamitra Warrier Mukherjee. Read more about the details here: - One Region, Two Paths: Divergence in Sub-Saharan Africa: https://lnkd.in/gCQQApMu - Regional Economic Outlook for SSA: https://lnkd.in/guVDRgfB

A rather informative piece by Athene Laws team at the IMF. I think we see this complex balance challenge in the energy sector too; trying to find a balance between renewable energy transition (while most households still lack access), financing of energy infrastructure (maintaining old infrastructure while trying to build new ones), scarcity when it comes to existing energy resources, lack of clear policy direction around energy mixes and inequality (risk of leaving the poor behind, further increasing the poverty gap), the chase in economic growth and development. The energy transition needs to be inclusive, especially in the Sub-Saharan African region. We cannot afford to leave anyone behind, otherwise we risk a further increase in the inequality gap. #inclusiveenergy #cleanenergy #energytransition #subsaharanafrica

The IMF's Regional Economic Outlook for sub-Saharan Africa was published today, and I was one of the authors of the main chapter. Our main messages: Sub-Saharan African countries are implementing difficult and much needed reforms to restore macroeconomic stability, and while overall imbalances have started to narrow, the picture is varied. Policymakers face three main hurdles. First, regional growth, at a projected 3.6 percent in 2024, is generally subdued and uneven, although it is expected to recover modestly next year to 4.2 percent. Second, financing conditions continue to be tight. Third, the complex interplay of poverty, scarce opportunities, and weak governance--compounded by a higher cost of living and short-term hardships linked to macroeconomic adjustment--are fueling social frustration. Within this environment, policymakers face a difficult balancing act in striving for macroeconomic stability while also working to address development needs and ensure that reforms are socially and politically acceptable. Protecting the most vulnerable from the costs of adjustment and realizing reforms that create sufficient jobs will be critical to mobilize public support. You can read the full report here, accompanied by three analytical notes (one being my team's work on job creation): https://lnkd.in/eQBE5vmF

SOUTH AFRICA’S ECONOMIC GROWTH TO DOUBLE IN 2024 Read: https://lnkd.in/dtaEeK-G Follow Business World Africa for exciting news updates in the African business space #business #Worldbank #SouthAfrica

Investing in Africa serves as a strategic avenue for enhancing global security. A report released yesterday by the World Bank highlights a concerning trend: half of the world’s 75 most vulnerable countries are experiencing a widening income gap compared to the wealthiest economies, marking a first in this century. Alarmingly, over half of these vulnerable nations, totaling 39, are located in Sub-Saharan Africa. It's evident that only through a robust European investment strategy in Sub-Saharan Africa can we mitigate the risk of coups and tensions between Western and Eastern powers, often stemming from energy access disparities. Addressing economic inequality translates to reduced instability. Italy has proposed the Mattei Plan nut it must be substantial, genuine, and not merely a marketing ploy. #Italy #Africa #pianomattei #GlobalSecurity #WorldBank #Investment

Africa’s Economic Performance 2024: Lasting Optimism? 👉 Following a slow recovery from the debilitating impact of COVID-19, Africa’s economic growth declined to an estimated 3.8 per cent in 2022 and later deteriorated to 3.3 per cent in 2023. 👉 Africa is not immune to economic shocks and has recently faced a multi-crisis situation. 👉 African countries have posted more than 5 per cent output expansions in 2024. Learn more 👉 https://cutt.ly/Aw42KrFh #investmentopportunities #economicdevelopment #africa #economicgrowth #growth #investment #economy

Africa's economic outlook for 2025 is promising, with the continent projected to grow by 4.4%, outpacing the global average of about 3%. This growth is expected to be driven by increased trade, particularly with the African Continental Free Trade Area (AfCFTA) playing a key role. The AfCFTA aims to enhance economic integration and increase trade flows within the continent by creating a single market for goods and services. While its actual impact has been limited so far, the agreement is expected to boost intra-African trade in various sectors, including agrifoods, industrial, and services. However, despite this positive outlook, there are challenges that Africa needs to navigate. 1. Debt levels: Many African countries are struggling with high debt levels, which may worsen amid fiscal deficits and liquidity challenges in 2025. 2. Fiscal deficits: Countries need to address fiscal pressures and find ways to increase tax revenue to sustain economic growth. 3. Climate change: Africa is vulnerable to climate change, which can impact agriculture-dependent economies and food security. 4. Global headwinds: Global economic turbulence, including inflation and geopolitical risks, can impact Africa's economic growth. Whereas there are challenges ahead, Africa's economic outlook for 2025 is promising, and the AfCFTA will be fundamental in advancing trade, growth, and integration.