Africa set to ward off economic roadblocks

AFRICA’S economic future after suffering a heavy toll during the 2020 Covid-19 pandemic, is set to pick up steam.

A recent report by the International Monetary Fund shows that its economic projection for the next two years is on an upward trajectory. In retrospect, sub-Saharan Africa is poised to become a formidable player in the global economy. According to the IMF’s recently released World Economic Update for January 2024, Global growth is expected to reach 3,1 percent in 2024 and 3,2 percent in 2025. The 2024 prediction is 0,2 percentage points higher than the October 2023 World Economic Outlook (WEO).

“The global economic recovery from the Covid-19 pandemic, Russia’s invasion of Ukraine, and the cost-of-living crisis is proving surprisingly resilient, ”the IMF disclosed. In Africa’s case, the fund notes that “growth is projected to rise from an estimated 3,3 percent in 2023 to 3,8 percent in 2024 and 4,1 percent in 2025,” in Sub-Sahara Africa. This positive momentum is attributed to the waning impact of previous weather shocks and a gradual improvement in supply chain challenges. Simply put, the primary driver behind Africa's economic resurgence is the resilience and adaptability of its nations in overcoming adverse climatic conditions.

For the world’s economic recovery, the IMF stated in its report; “with disinflation and steady growth, the likelihood of a hard landing has receded, and risks to global growth are broadly balanced. On the upside, faster disinflation could lead to further easing of financial conditions.