The sub-Saharan African region is expected to see 2.5% in economic growth in 2023, according to The World Bank.
The growth is projected to increase to 3.7% in 2024 and to 4.1% in 2025. It expanded 3.6% in 2022.
In per capita terms, however, the region is expected to contract during the 2015 – 2025 period, the bank said Wednesday in a statement.
“The region faces many challenges, including a ‘lost decade’ of sluggish growth, persistently low per capita income, mounting fiscal pressures exacerbated by high debt burdens, and an urgent need for job creation,” it said.
“Tackling these multifaceted issues requires comprehensive reforms to promote economic prosperity, reduce poverty, and create sustainable employment opportunities in the region. This will require an ecosystem that facilitates firm entry, stability, growth, and skill development that matches business demand,” it added.
The World Bank said a continued slump in the region’s large economies is dragging down Sub-Saharan Africa’s economic performance.
While South Africa’s GDP is expected to grow just 0.5% in 2023, due to energy and transportation bottlenecks, Nigeria and Angola are projected to grow 2.9% and 1.3%, respectively, due to currency pressures affecting oil and non-oil activity.
Economic activity in Sudan is expected to contract 12% as the internal conflict halts production and destroys human capital and state capacity, according to the World Bank’s Africa’s Pulse report.