Africa’s economies to defy pandemic, perform well in 2022/23

● IN 2022, more than 25 of Africa’s fastest-growing economies will register more than 5% growth.

● The economic growth in sub-Saharan Africa (SSA) in 2022 will be shaped by the trade and investment landscape in the region.

● The International Monetary Fund (IMF) notes that the growth is mostly supported by external conditions of trade and commodity prices.

Africa’s economy is expected to grow by 3,8% in 2022 after the COVID-19 pandemic lowered its GDP growth which saw the per capita income decline by 5½%.

According to the IMF, the growth is mostly supported by external conditions of trade and commodity prices. In addition, bountiful agricultural production in some countries will boost the region’s economy.

That aside, the economic growth in sub-Saharan Africa in 2022 will be shaped by the trade and investment landscape in the region.

The travel and tourism sector may rebound in 2022, but recovery may still be limited depending on tourism source markets.

To prop the sector, the East African Community (EAC) launched the EAC Regional and Domestic Tourism Media campaign meant to market national and regional tourism products and services. The move is aimed at stimulating intraregional travel.

Dubbed “Tembea Nyumbani”, the campaign aims to encourage East Africans to travel within their own countries and throughout the region in an effort to resuscitate tourism domestically and regionally in the face of the pandemic.

Producers and traders of African commodities should expect a year of great performance as a result of a commodities boom.

This is good news for African energy, metals, minerals, and food producers’ revenue and stock values.

New technologies are expected to be widely adopted in Africa in 2022 as the area continues with its digital transformation.

Infrastructural investment, as well as education and training, are necessary to fully benefit from the digital revolution.

On national debts, for some countries, there will be increased calls for restructuring of external debt in a meaningful way instead of debt-service deferrals and strategic positioning by international creditors in 2022.

With several elections held in 2022, there is a possibility that some countries may become conflict hotspots. In addition, the threat of terrorism remains real.

Already, the ongoing conflict in Ethiopia remains a major cause of instability in the East African nation. Depending on how this is dealt with, countries in the larger Horn of Africa region remain sensitive.

In 2022, more than 25 of Africa’s fastest-growing economies will register more than 5% growth as projected by the IMF.

The top 10 best performing African economies as per the October 2021 report titled Recovery During a Pandemic are Seychelles, which will see a 7,7% growth in 2022, Rwanda 7,0%, Mauritius 6,7%, Niger 6,6%, Benin, Cabo Verde, South Sudan and Côte d’Ivoire will each see a growth of 6,5%, while Guinea and Ghana will see a growth of 6,3% and 6,2%, respectively.