The African Development Bank (AfDB) has released its latest Macroeconomic Performance and Outlook (MEO) report, projecting the continent’s real Gross Domestic Product (GDP) to grow at an average of 3.8% in 2024 and 4.2% in 2025. This growth surpasses the projected global averages of 2.9% and 3.2% for the same respective years.

The report highlights that Africa is poised to remain the second-fastest-growing region globally, following Asia. It identifies Niger, Senegal, Libya, and Rwanda among the top 11 African countries expected to witness strong economic performance, with growth rates ranging from 11.2% to 7.2%.

Akinwumi Adesina, President of AfDB, emphasized the need for increased financing and policy interventions to further propel Africa’s economic growth. He acknowledged the challenges posed by global and regional risks such as rising geopolitical tensions, regional conflicts, and political instability, all of which could disrupt trade and investment flows and perpetuate inflationary pressures.

The report underlines that despite the uncertain global economy, Africa’s medium-term growth outlook across its five regions is gradually improving, showcasing the continent’s economic resilience. Factors contributing to the growth in Africa’s top-performing economies include economic diversification, strategic investment in key growth sectors, rising public and private consumption, and positive developments in key export markets.

Albert Muchanga, the Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals at the African Union Commission, stressed the importance of economic integration for Africa’s future. He emphasized the need for a competitive internal African trade market to ensure value-added and intra-African production of manufactured goods.

Additionally, the report’s findings and recommendations are set to be presented to African heads of state and will contribute to the African Union’s proposals to the G20. It reflects concerted efforts by the continent’s policymakers to drive economic diversification strategies, increase investment in key growth sectors, and implement domestic policies aimed at consolidating fiscal positions and boosting private consumption.

Looking ahead, the report calls for long-term affordable financing as part of Africa’s strategy to achieve a growth rate of 7% or more per year. Mr. Sachs, the director of the Centre for Sustainable Development at Columbia University, emphasized the need for longer-term loans to support Africa’s development, cautioning against the risks associated with short-term borrowing.

As Africa continues to navigate economic challenges, the MEO report serves as a crucial resource for policymakers, providing valuable insights to guide economic planning and bolster the continent’s resilience against external shocks.

Taking into account the diverse viewpoints and insights shared in the AfDB’s report, it is evident that Africa’s economic trajectory holds promise, contingent on sustained policy reforms, strategic investments, and regional collaboration.