June 10 – African economies are demonstrating resilience in the face of global economic challenges, with 41 countries on the continent expected to experience stronger growth rates in 2024 compared to 2023. This is according to the latest African Economic Outlook (AEO) report by the African Development Bank Group, unveiled during the Bank’s Annual Meetings in Nairobi in May 2024.
The report highlights Africa’s remarkable growth potential, maintaining its 2023 ranking as the second fastest-growing region after developing Asia in both 2024 and 2025. The theme of the 2024 AEO, “Driving Africa’s Transformation: The Reform of the Global Financial Architecture,” aligns with the Bank’s Annual Meetings’ focus.
Dr. Akinwumi Adesina, President of the African Development Bank, expressed pride in the growth projections of many African countries as outlined in the report but acknowledged the existing challenges. “Africa’s future is bright, but we need to make sure we tackle governance, transparency, accountability, and management of our natural capital. We need to ensure that resources are used for the benefit of the people of this continent… The kind of resilience we are talking about cannot happen unless we deal with the issue of climate change,” Adesina stated.
He emphasized the importance of investing in young people, their skills, talents, and entrepreneurship, highlighting initiatives like the Youth Entrepreneurship Investment Banks as vital for Africa’s future.
However, the report also warns that Africa is off track to meet almost all of the Sustainable Development Goals (SDGs) by 2030. It argues that without corrective action, including reversing the steepening poverty curve, Africa could be home to nearly 87% of the world’s extreme poor by 2030.
The African Economic Outlook report forecasts a rebound in Africa’s average growth, rising to 3.7% in 2024 and 4.3% in 2025, exceeding the projected global average of 3.2%. Of this figure, 17 African economies are projected to grow by more than 5% in 2024, with the number potentially rising to 24 in 2025 as the pace of growth accelerates.
This growth trajectory is expected to surpass pre-2023 levels, with East Africa leading as the fastest-growing region with up to 3.4 percentage points growth. Other regions are also projected to witness moderate to robust growth.
In his presentation, Prof. Kevin Chika Urama, Chief Economist and Vice President of the African Development Bank, underscored the importance of strategic policies and firm political commitment for the effective use of resource wealth in domestic revenue generation. He described hard infrastructure, such as roads, railways, and bridges, and soft infrastructure, including knowledge and institutional governance capacity, as “two wings of an aircraft.” “Investing in productive infrastructure is key to accelerating Africa’s structural transformation,” he said.
Growth Performance and Outlook by Region: Growth prospects vary across Africa’s regions, reflecting differences in economic structure, commodity dependence, and policies. East Africa is expected to lead growth, followed by other regions that will also see varying degrees of robust economic performance.
As Africa continues on its growth path, the need for structural reforms, investment in infrastructure, and addressing climate change remains critical to sustaining the continent’s economic resilience and achieving long-term development goals.
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