UN report sees better prospects for African growth in 2025

The UN Department of Economics and Social Affairs predicts an improvement of overall African growth in 2025 to 3.7% from 3.4$, despite global stagnation.

“Economic growth in Africa is projected to strengthen… driven by recovery in the region’s largest economies,” the report says.

However, “Central Africa lags behind due to stagnating oil production and political instability,” the report says.

It warns of the risk posed by inflation which continues to stand at double digits driven mainly by food prices.

“Food inflation remains particularly persistent in developing economies, with about half of them experiencing rates above 5.0 per cent in 2024,” a trend that exacerbates food insecurity in vulnerable populations.

The report also mentions debt servicing as a burden on African economies with interest payment expected to amount to 27% of government revenue in the continent, up 19% from 2019.

High cost of debt limits budgets available to investments in vital sectors such as health, education and infrastructure.