By Sallieu S. Kanu
Washington, April 23, 2025 – Economic growth in Sub-Saharan Africa is gaining momentum, with regional growth projected to reach 3.5% in 2025 and accelerate further to 4.3% in 2026-2027. This resilience comes amid global economic uncertainty and constrained fiscal resources, with improved private consumption and investments driving the upturn as inflation eases and currency markets stabilize.
The region saw its median inflation rate fall from 7.1% in 2023 to 4.5% in 2024, signaling brighter prospects for consumers and investors. However, Africa’s economic growth remains insufficient to make substantial progress in poverty reduction or meet the aspirations of its population. According to the 31st edition of Africa’s Pulse, real income per capita in 2025 is expected to remain approximately 2% below its most recent peak in 2015. Resource-rich countries and those affected by fragility, conflict, and violence continue to lag behind more diversified economies, while job creation for Africa’s young population remains a pressing challenge.
Andrew Dabalen, World Bank Chief Economist for the Africa Region, emphasized the urgent need for reforms to align markets and institutions with public aspirations. “There is a growing gap between people’s aspirations for good jobs and functioning public services and often sub-optimal markets and institutions,” Dabalen stated. “Urgent reforms, backed by more competition, transparency, and accountability, will be key to attract private investments, increase public revenue, and create more economic opportunities for the millions of Africans entering the workforce each year.”
Heightened uncertainty remains a concern for Sub-Saharan Africa, fueled by shifts in trade dynamics, regional conflicts, and climate change affecting livelihoods and agriculture. The report highlighted the need for African economies to liberalize and diversify markets, leveraging platforms such as the African Continent Free Trade Area (AfCFTA) to stimulate regional trade, create employment, and expand economic activity.
Policy recommendations for African governments stressed the importance of maintaining growth and rebuilding trust within a volatile context. With high debt levels and declining global aid, governments have an opportunity to enhance spending efficiency and provide better access to essential services like health, education, water, and electricity. Improved public services, a fair tax system, stronger accountability, and transparent market rules could also help businesses compete, thrive, and generate jobs for Africa’s growing population.
As Sub-Saharan Africa moves toward accelerated economic growth, stakeholders are urged to adopt transformative reforms that align governance with people’s aspirations, ensuring sustainable progress for millions across the region.
Let me know if there are further adjustments or specific details you’d like refined!