African economies remain resilient and its growth potential in 2024 is “remarkable,” despite challenges that are testing the global economy, says the latest African Development Bank (AfDB) Group’s African Economic Outlook.
The report, unveiled at the AfDB’s Annual Meetings in Nairobi last week, says that 41 African countries are projected to experience stronger growth rates in 2024 than they did in 2023, meaning that the continent will retain its 2023 ranking as the second fastest-growing region after developing Asia for this and next year. Growth prospects vary across Africa’s regions, reflecting differences in economic structure, commodity dependence, and policies. East Africa is the continent’s fastest growing region that will see real GDP growth rising from an about 1.5% in 2023 to 4.9% in 2024 and 5.7% in 2025. West Africa is projected to see its growth pick up from an estimated 3.6% in 2023 to 4.2% in 2024 and consolidating at 4.4% the following year, while Southern Africa will likely record slight increase in growth.
The AfDB’s African Economic Outlook 2024 has also made bold proposals to reform the global financial architecture, which includes giving Africa a stronger voice in multilateral development banks (MDBs) and international financial institutions, reflecting its growing share of global gross domestic product and rich natural resources. “Let’s be clear. By seeking to transform the global financial architecture, Africa is just asking for a fair share of access and availability of resources to build on our vast economic opportunities,” AfDB President, Akinwumi Adesina, said. The other proposals for reforming the global financial architecture focus on five key areas: leveraging private sector financing, simplifying the global climate finance architecture, reforming MDBs, streamlining debt resolution mechanisms, enhancing domestic resource mobilization.