World Bank puts growth in Sub-Saharan Africa at 3% in 2024

The World Bank revised downwards economic growth in Sub-Saharan Africa to 3% instead of 3.4%, citing the impact of the war in Sudan.

The forecast is still higher than the 2.4% registered last year, thanks to increased private consumption and investment, the Bank said in a recent report.

The report forecasts growth of 3.9% for next year, noting that inflation would ease in most countries allowing for lower interest rates.

Growth would be affected by the evolution of many conflicts and erratic weather patterns, it said.

Growth in the region’s most advanced economy, South Africa, is expected to stand at 1.1% this year and 1.6% in 2025, according to the report, compared to 0.7% last year.

Nigeria is expected to grow by 3.3% this year and 3.6% in 2025, while Kenya, East Africa’s richest economy, is expected to grow by 5% this year, according to the report.

Growth in the region is also hampered by high debt service costs in countries like Kenya, which was rocked by deadly protests against tax hikes in June and July.

The total external debt of Sub-Saharan African economies has risen from $150 billion about fifteen years ago to around $500 billion, most of which is owed to bond market investors and China.