Africa’s Rise: The world’s fastest-growing economies revealed in AfDB report

AfDB unveils plan to spark Africa's economic boom in 2024 AfDB unveils plan to spark Africa's economic boom in 2024
From left to right: Director, Center for Sustainable Development, Columbia University, Prof Jeffrey Sachs; AU Commissioner, Ambassador Albert Muchanga; African Development Bank President Dr Akinwumi Adesina, Vice President Marie-Laure Akin-Olugbade and Chief Economist and Vice President Prof Kevin Urama.

In a recent report released by the African Development Bank Group, it has been revealed that Africa is set to become home to eleven of the world’s fastest-growing economies by 2024.

This news comes as a welcome boost for the continent, which has long been striving for economic growth and development.

According to the report, the overall real gross domestic product (GDP) growth for Africa is expected to average 3.8 percent in 2024 and increase to 4.2 percent in 2025. These figures are significantly higher than the projected global averages of 2.9 percent and 3.2 percent, respectively. This means that Africa is set to remain the second-fastest-growing region in the world, just behind Asia.

AfDB unveils plan to spark Africa's economic boom in 2024
The headquarters of the African Development Bank (AfDB) are pictured in Abidjan, Ivory Coast, September 16, 2016. REUTERS/Luc Gnago

The report also highlights the top 11 African countries that are projected to experience strong economic performance in the coming years. These countries include Niger, Senegal, Libya, Rwanda, Ivory Coast, Ethiopia, Benin, Djibouti, Tanzania, Togo, and Uganda. These countries are expected to see impressive GDP growth rates ranging from 6 percent to 11.2 percent. This is a testament to the potential and opportunities that exist within the African continent.

In light of these positive developments, AfDB President Akinwumi Adesina has called for larger financing pools and several policy interventions to further boost Africa’s growth. He acknowledged the challenging global and regional economic environment but emphasized the need for cautious optimism. Adesina commended the fifteen African countries that have already achieved output expansions of more than 5 percent, indicating their resilience and potential for sustained growth.

The report, titled “Africa’s Macroeconomic Performance and Outlook,” is released biannually and provides an assessment of the continent’s recent macroeconomic performance and short-to-medium-term outlook. It takes into account the dynamic global economic developments and offers valuable insights into Africa’s economic landscape.

However, the report also points out the need for caution, given the challenges posed by global and regional risks. Factors such as climate change, political instability, and trade tensions can potentially hinder Africa’s economic progress. Therefore, it is crucial for policymakers and stakeholders to address these risks and implement appropriate strategies to ensure sustainable growth.

AfDB unveils plan to spark Africa's economic boom in 2024
From left to right: Director, Center for Sustainable Development, Columbia University, Prof Jeffrey Sachs; AU Commissioner, Ambassador Albert Muchanga; African Development Bank President Dr Akinwumi Adesina, Vice President Marie-Laure Akin-Olugbade and Chief Economist and Vice President Prof Kevin Urama.

Overall, the AfDB’s report highlights the significant potential of Africa’s economies and the ongoing progress being made. As the continent continues to attract investment and implement effective policies, it is well-positioned to become a key player in the global economy. With cautious optimism and strategic interventions, Africa’s rise as one of the world’s fastest-growing economies is becoming a reality.

The global economic landscape is currently marked by a number of risks that could potentially impact the African continent. Such risks include heightened geopolitical tensions, increased regional conflicts, and political instability. These factors have the potential to disrupt trade and investment flows, thereby perpetuating inflationary pressures.

Despite some positive developments, such as a faster-than-expected recovery from the pandemic that has helped improve fiscal deficits, President Adesina cautions that the fiscal positions of African countries remain vulnerable to global shocks. The uncertain state of the global economy only adds to this vulnerability. However, the report does indicate a slow but steady improvement in the medium-term growth outlook for Africa’s five regions.

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