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Sub-Saharan Africa’s economy is showing resilience despite global uncertainties and limited fiscal space, the World Bank has said in its latest Africa’s Pulse report.
Released on Wednesday, the report projects regional economic growth to reach 3.5 percent in 2025, with further acceleration to 4.3 percent in 2026 and 2027.
The growth is largely driven by recovering private consumption and investment, aided by declining inflation and stabilizing currencies.
The World Bank noted a significant drop in median inflation in the region — from 7.1 percent in 2023 to 4.5 percent in 2024.
However, the report cautioned that the pace of growth remains insufficient to substantially reduce poverty or meet the aspirations of the population.
Real income per capita in 2025 is projected to remain about two percent below its 2015 peak.
Resource-rich countries and those affected by fragility, conflict, and violence continue to grow more slowly than more diversified economies.
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The region also faces persistent challenges in generating enough quality jobs for its growing youth population.
“There is a growing gap between people’s aspirations for good jobs and functioning public services and often sub-optimal markets and institutions,” said Andrew Dabalen, World Bank Chief Economist for the Africa Region.
“Urgent reforms, backed by more competition, transparency, and accountability, will be key to attracting private investment, increasing public revenues, and expanding economic opportunities.”
The report identifies trade disruptions, regional conflicts, and climate change as key risks to economic stability.
However, it urges African countries to take advantage of regional integration efforts, such as the African Continental Free Trade Area (AfCFTA), to diversify their economies and expand employment opportunities.
To maintain growth and rebuild public trust, the World Bank recommends African governments improve the efficiency of public spending, especially in essential services like health, education, water, and electricity.
It added that stronger accountability, clearer market rules, and a fairer tax system would enable businesses to compete, grow, and create jobs.
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