The economic growth of Sub-Saharan Africa poised to slow down this year

The latest report from the World Bank, released on Wednesday, indicates that the economic growth of Sub-Saharan Africa is on track to decelerate this year, largely attributed to the lackluster performance of key economies such as South Africa, Nigeria, and Angola.

According to the report, regional economic growth is expected to decline to 2.5 percent in 2023, down from the 3.6 percent recorded in the previous year. However, there is optimism as projections suggest a rebound to 3.7 percent next year and further growth to 4.1 percent in 2025.

One concerning trend highlighted in the report is the absence of positive per capita growth in the region since 2015. Despite a rapid population increase, economic activity in African nations has failed to keep pace. This has resulted in a widening gap between population growth and job creation.

The “Africa’s Pulse” report by the World Bank reveals that approximately 12 million Africans enter the labor market annually, but current economic growth patterns only generate around 3 million formal sector jobs. Consequently, this places a significant burden on the region’s most vulnerable and impoverished individuals.

Andrew Dabalen, Chief Economist for Africa at the World Bank, expressed his concerns, noting, “The region’s poorest and most vulnerable people continue to bear the economic brunt of this slowdown, as weak growth translates into slow poverty reduction and poor job growth.”

In a worrisome trend, more than half of the region’s countries, precisely 28 out of 48, have seen their 2023 growth forecasts downgraded compared to the World Bank’s April estimates.

South Africa, the continent’s most advanced economy, is expected to achieve a mere 0.5 percent growth this year, primarily due to its ongoing energy crisis. Similarly, top oil producers Nigeria and Angola are projected to experience growth slowdowns, with rates of 2.9 percent and 1.3 percent, respectively.

The report also spotlights the dire situation in Sudan, where a significant internal armed conflict has resulted in infrastructure destruction and a stagnant economy, leading to a projected contraction of 12 percent.