China’s slowdown, Russia’s war compounding Africa's woes, says African Devt Bank

The African Development Bank (AfDB) has said the current economic woes in Africa is compounded by political instability and China's economic slowdown as well as Russia's war in Ukraine.

Africa's economic growth fell to 3.2 per cent last year from 4.1 per cent in 2022, but AfDB projected higher growth this year for all regions except central Africa.

The final figure for 2023 was below the 3.4 per cent growth the AfDB had forecast in November. It also cut its regional growth estimates for central and north Africa, amid a recession in oil producer Equatorial Guinea and the aftermath of devastating flooding in Libya.

"The shocks buffeting African economies since 2020 have damaged growth, with long-term implications," the bank said in a report.

Despite the shocks buffeting the region, 15 African countries posted economic growth of more than five per cent last year, the AfDB said, including Ethiopia, which is restructuring its external debt, Ivory Coast, Democratic Republic of Congo, Mauritius and Rwanda.

Nigeria, West Africa's largest economy, is set to grow 2.9 per cent in 2024, up 0.4 percentage points from last year as a sharply devalued currency pushes up inflation, exacerbating a cost of living crisis.

The bank forecast faster growth in all regions except for central Africa in 2024, with southern Africa seen as remaining the laggard at 2.2 per cent compared with 5.7 per cent in east Africa.

Southern Africa's "sluggish performance reflects the continued economic stagnation in South Africa," the bank said, with the region's largest economy, which holds national elections this year, predicted to grow 1.1 per cent in 2024, up from 0.8 per cent last year.

"This underwhelming economic situation has aggravated the country's persistently high unemployment, poverty, and inequality and prevented it from reaping democratic dividends in the 30 years since the end of White minority rule," AfDB said.