The World Bank has issued a warning about a grim economic future for Sub-Saharan African nations, including Nigeria, South Africa, and Angola. The report emphasizes the necessity of immediate actions to prevent a decade of economic stagnation.
The Africa's Pulse report projects a decline in growth from 3.6% in 2022 to 2.5% in 2023 for the region. It cites rising instability, sluggish growth in major economies, global uncertainty, and impacts on oil and non-oil activity in Nigeria and Angola as key challenges. South Africa's GDP is expected to grow only 0.5% in 2023.
The situation is exacerbated by energy constraints, falling international prices, currency pressures, conflict and environmental crises. For instance, Sudan's economy is projected to contract by 12% due to internal conflict.
Despite these challenges, the report predicts growth for the Eastern African Community (EAC) and the West African Economic and Monetary Union (WAEMU) regions in 2023. It also anticipates a decline in inflation from 9.3% to 7.3%, and improving fiscal balances.
Economists stress the urgency of economic transformation and job creation amidst widespread debt distress. They advocate for education investment as a solution to underemployment and emphasize the importance of creating job opportunities for inclusive growth.
The report also urges measures for stability, boosting growth, creating jobs, reducing poverty, managing debt distress, and mitigating climatic shocks. It highlights the need to turn the continent’s demographic wealth into an economic dividend.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.