Cape Town — More and more Africans are experiencing poverty. Coupled with the impact of Covid‑19 and the war between Russia and Ukraine, which intensified just over a year ago, global trade and the supply of goods have been severely disrupted. Internal conflicts between government forces and rebel groups, the refugee crisis, and the climate emergency have also led to flooding, disease, and food shortages across the continent. The road to economic recovery is expected to be long, and the situation will likely worsen before any light is seen at the end of this tunnel.
“The three overlapping crises have pushed more Africans into extreme poverty and resulted in increased inequalities and vulnerabilities on the continent. There were significant levels of poverty and inequality in Africa even before recent global crises, but now poverty has worsened and inequality has widened,” said Deputy Executive Secretary and Chief Economist Hanan Morsi of the UN Economic Commission for Africa (ECA).
In South Africa, consumers face another shock as the South African Reserve Bank is expected to raise interest rates by 25 basis points this month. The hike will further increase food and fuel prices, and many will struggle to pay their home loans. South Africa also saw calls for a national shutdown on 20 March 2023 by the opposition Economic Freedom Fighters (EFF), which urged citizens to protest electricity blackouts, youth unemployment, inadequate funding for education, and government corruption. Both South Africa and Nigeria have been grey‑listed for failing to implement adequate standards to prevent money laundering and terrorist financing. South Africa’s unemployment rate remains extremely high at approximately 35 %.
In Kenya, protests against power blackouts, rising food prices, and government corruption have been organised by opposition leader Raila Odinga, who rallies supporters every Monday and Thursday. Meanwhile, Tanzania’s government is striving to revolutionise agriculture and improve livelihoods. Prime Minister Kassim Majaliwa is optimistic that financial institutions will lower interest rates and loan charges to boost growth.
Nigeria’s unemployment and underemployment rates rose to an all‑time high of 56.1 % in 2020, pushing 133 million citizens into poverty. Like South Africa, Nigeria has been grey‑listed by the Financial Action Task Force for insufficient anti‑money‑laundering measures, which could deter future investment. Across the country, both rich and poor are reportedly buying cheaper brands to cut costs.
In Zimbabwe, the economy is buckling under international sanctions, and a surge in weapons inflows has led to a spike in armed robberies. According to the Zimbabwe National Statistics Agency, robberies increased from 2017 to 2019, with armed robberies almost doubling between 2018 and 2019.
Zambia received a bailout from the International Monetary Fund (IMF) after becoming the first African nation to default on debt in November 2020. IMF chief Kristalina Georgieva praised Zambia’s reform efforts and, during her January 2023 visit, announced an understanding in principle with China to restructure nearly US$6 billion of Zambian debt owed to Beijing, one of its main creditors.
Ghana’s President Nana Akufo‑Addo declared on 30 October 2022, “We are in a crisis… I cannot find an example in history when so many malevolent forces have come together at the same time.” He pledged to turn the crisis into an opportunity to address both urgent short‑term problems and long‑term structural issues. Ghana applied for an IMF bailout, conditional on reducing public debt from an estimated 105 % of GDP to 55 % in present‑value terms by 2028, and securing bond‑holder support. During U.S. Vice President Kamala Harris’s visit this week, Ghana was promised a U.S. assistance package of US$139 million, most of which will support conflict prevention in the Sahel region, where extremists have expanded their footprint.
While many African countries face economic pressure, the IMF projects Rwanda’s economy to grow by 6.2 % in 2023 and 7.5 % in 2024, according to Reuters. IMF Managing Director Kristalina Georgieva visited Rwanda in January 2023 and discussed the outlook with President Paul Kagame. Since the 1994 genocide, Rwanda has undergone rapid industrialisation driven by successful government policies. The Tutsi‑led government launched a major programme to rebuild the economy and reduce dependence on subsistence farming, adopting a mixed‑economy model in 2006. The resulting boom has improved living standards for many Rwandans.
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