The African Development Bank Group (AfDB), in its Macroeconomic Performance and Outlook for Africa, indicated that the continent has seen positive growth despite multiple economic shocks in 2022, with projections indicating stability for 2023 and 2024.

African nations projected to see significant growth in 2023-2024, with top-performing economies before Covid-19, Rwanda, Côte d’Ivoire, Benin, Ethiopia and Tanzania, expected to surpass an average of 5.5% growth, reclaiming their spot among the world’s fastest-growing economies.

In Central Africa, favorable commodity prices led to an estimated growth rate of 4.7%, up from 3.6% in 2021. This is the fastest growth among all regions in Africa, which is driven by strong demand for the continent’s resources, particularly minerals and oil.

Southern Africa, however, saw a slowdown in growth to 2.5% in 2022 from 4.3% in 2021. This was largely due to subdued growth in South Africa, as factors such as higher interest rates, weak domestic demand, and persistent power outages weighed on the economy.

West Africa also saw a slowdown in growth, with an estimated rate of 3.6% in 2022, compared to 4.4% in 2021. This was due to decelerations in Côte d’Ivoire and Nigeria, the region’s two largest economies. Despite the challenges posed by Covid-19, insecurity, and weak oil production, Nigeria’s growth in 2023 could potentially benefit from ongoing efforts to restore security in the restive oil-producing region.

North Africa experienced a decline in growth, with an estimated rate of 4.3% in 2022, down from 5.4% in 2021. This was due to sharp contraction in Libya and the drought in Morocco. However, growth is projected to stabilize at 4.3% in 2023, supported by an expected strong rebound in the two countries and sustained growth elsewhere in the region.

In East Africa, growth moderated to 4.2% in 2022 from 5.1% in 2021. However, the region is projected to recover to a pre-pandemic average above 5.0% in 2023 and 2024. Despite the relatively diversified production structure in East Africa, countries in the region are largely net importers of commodities and are therefore affected by high international prices, recurrent climate shocks, and insecurity, particularly in the Horn of Africa.

Source: AfDB

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