In a groundbreaking revelation, the African Development Bank (AFDB) has unveiled its latest projections for the growth rate of Nigeria and other West African countries.
According to Kevin Urama, the AFDB Vice-President and Chief Economist, the region’s growth is expected to soar from an estimated 3.6% in 2023 to an astounding 4.2% in 2024, with further consolidation at an impressive 4.4% the following year.
This remarkable upgrade of 0.3 percentage points for 2024, compared to previous projections, signifies a significant boost in the economies of West Africa’s powerhouses, including Côte d’Ivoire, Ghana, Nigeria, and Senegal.
Urama emphasized that these countries, with their robust growth prospects, are driving the region’s economic resurgence.
The African Economic Outlook 2024, unveiled during the African Development Bank’s Annual Meetings in Nairobi, Kenya, highlighted the theme of “Driving Africa’s Transformation: The Reform of the Global Financial Architecture.”
The report underlines the resilience of African economies, which have weathered multiple storms and are projected to stabilize at an average growth rate of 4.0% in 2024-2025, compared to the estimated 3.1% in 2023.
Urama noted that the average real Gross Domestic Product (GDP) growth had experienced a slight slowdown from 4.1% in 2022 to 3.1% in 2023, attributed to factors such as persistently high food and energy prices, the impacts of Russia’s invasion of Ukraine, climate change effects, and pockets of political instability and conflict in some African nations.
However, the report forecasts a rebound in real GDP growth, projecting a rise to 3.7% in 2024 and an even more remarkable 4.3% in 2025, surpassing the 2022 figure of 4.1%.
As the effects of the aforementioned factors wane, Africa is expected to witness a significant resurgence in its average growth, led by East Africa with a notable increase of 3.4 percentage points, followed by Southern Africa and West Africa with a rise of 0.6 percentage points each.
Notably, the report highlights that 40 countries are poised for higher growth in 2024 compared to 2023, with 17 economies projected to grow by more than five percent in 2024, a number that could potentially increase to 25 in 2025.
This outstanding performance affirms Africa’s position as the second-fastest-growing region globally, trailing only Asia, with projected GDP growth exceeding the global average of 3.2% in 2024.
While oil-exporting countries might experience a slight decline in growth, mainly due to lower oil production targets set by OPEC and challenges faced by countries like South Sudan and Angola, non-oil resource-intensive economies on the continent are expected to witness a remarkable upturn.
These economies, estimated to improve from 0.3% growth in 2023 to an impressive 2.7% in 2024, are set to consolidate at 3.3% in 2025.
The surge in growth will be largely driven by resurgent demand from China for metals and minerals linked to smart grid expansions and construction projects.
With these promising projections, West Africa, Nigeria, and the broader African continent are on the cusp of an economic transformation, poised to unleash their full potential and solidify their position as key players in the global economic landscape.
